Bitget beginner's guide – USDT-M/USDC-M Futures and Coin-M Futures explained

There are two main types of futures trading in the cryptocurrency industry: USDT-M/USDC-M Futures and Coin-M Futures. Bitget offers USDT-M perpetual futures, USDC-M perpetual futures, Coin-M perpetual futures, and Coin-M delivery futures—each suited to different kinds of traders. This article breaks down the features and use cases of each futures type to help beginners get started with ease.

USDT-M perpetual futures and USDC-M perpetual futures on Bitget

USDT-M and USDC-M perpetual futures are settled and denominated in stablecoins—USDT and USDC, respectively. These futures have no expiration date and are ideal for traders who value flexibility. Popular trading pairs include BTCUSDT and ETHUSDC. Futures values are calculated in fiat currency, transaction fees are based on funding rates, and position sizes are straightforward to understand.

• Pros: No need to convert values into crypto, making it suitable for beginners and easier to manage.

• Cons: Profits are settled in USDT, a stable asset that doesn't appreciate in value.

• Suitable for: New users or traders seeking stable returns.

Coin-M perpetual futures and Coin-M delivery futures on Bitget

Coin-M Futures are denominated and settled in cryptocurrencies like BTC or ETH. They come in two types: perpetual futures, which have no expiry; and delivery futures, which settle on a fixed date (e.g., BTCUSD 0628).

• Coin-M perpetual futures: For example, BTCUSD. These are settled and valued in crypto, with transaction fees based on the funding rate.

• Coin-M delivery futures: For example, ETH0927. These are settled in crypto upon expiry and incur a delivery fee.

• Pros: Profits are tied to the underlying asset, making them ideal for long-term holders or hedging spot positions.

• Cons: Position sizes must be calculated in crypto, which adds complexity.

• Suitable for: Professional traders or those familiar with crypto market volatility.

Key differences between USDT-M and Coin-M Futures

Category	USDT-M/USDC-M perpetual futures (linear)	Coin-M perpetual futures (inverse)	Coin-M delivery futures (inverse)
Settlement currency	Usually USDT or USDC (stablecoins)	Usually BTC or other cryptocurrencies	Usually BTC or other cryptocurrencies
Common pairs	BTCUSDT, ETHUSDC, etc.	BTCUSD, ETHUSD, etc.	BTCUSD0628, ETH0927, etc.
Futures value	In fiat	In cryptocurrency	In cryptocurrency
Expiration date	None	None	Yes
Transaction fee	Funding fee	Funding fee	Delivery fee
Characteristics	PnL is straightforward	PnL conversion required	PnL conversion required
Suitable users	Beginners	Beginners/experts	Experts

Use case comparison

The following examples show how each type of futures can be used, helping you choose the one that best fits your trading style.

Scenario 1: Short-term speculation (USDT-M perpetual futures)

• You believe BTC will rise in the short term, so you open a long position in USDT-M perpetual futures (BTCUSDT).

• Transaction details:

￮ Entry price: BTC = $60,000

￮ Position size: 1 BTC (notional value = 60,000 USDT)

￮ Leverage: 10x (margin: 6000 USDT)

Outcome:

• If BTC rises to $61,000 (+1000 USDT):

￮ Profit = 1000 USDT (settled in USDT)

• If BTC falls to $59,000 (–1000 USDT):

￮ Loss = 1000 USDT

Suitable for: Short-term traders and beginners (user-friendly with intuitive PnL)

Scenario 2: Long-term holding and hedging (Coin-M perpetual futures)

• You're holding 1 BTC in spot (entry price is $60,000) but are concerned about a potential drop in the market.

• You open a short position in Coin-M perpetual future (BTCUSD) to hedge your spot holdings.

￮ Entry price: BTC = $60,000

￮ Position size: 1 BTC (notional value = 60,000 USDT)

￮ Leverage: 5x (margin: 0.2 BTC)

Outcome:

• If BTC falls to $50,000 (–16.67%):

￮ Spot loss = –10,000 USDT (your BTC loses value)

￮ Futures profit = 0.2 BTC (gained from the short position)

￮ Net effect: Futures profit offsets part of the spot loss

Suitable for: Long-term holders and institutional investors looking to hedge against downside risk.

Scenario 3: Arbitrage at expiry (Coin-M delivery futures)

• You notice that the BTCUSD0627 delivery futures is trading at $59,000, while the current spot price is $60,000—creating an arbitrage opportunity.

• You open a long position in 1 BTCUSD0627 delivery futures and hold it until expiry.

Outcome:

• If the spot price remains at $60,000 at expiry:

￮ Settlement price = spot price ($60,000)

￮ Profit = $1000 (60,000 – 59,000)

￮ Actual return = 0.0169 BTC (1000 ÷ 59,000)

Suitable for: Professional traders and arbitrage traders looking to profit from discrepancies between futures and spot prices.

Scenario	Futures type	Goal	PnL settlement	Suitable for
Short-term speculation	USDT-M perpetual futures (BTCUSDT)	Buy low, sell high for quick profits	Settled in USDT	Beginners, short-term traders
Risk hedging	Coin-M perpetual futures (BTCUSD)	Protect spot holdings from downside risk	Settled in BTC	Long-term holders, institutions
Arbitrage at expiry	Coin-M delivery futures (BTCUSD0627)	Profit from price differences between spot and futures	Settled in BTC	Professional traders, arbitrageurs

Conclusion

For beginners, choosing between USDT/USDC-M Futures and Coin-M Futures isn't just about personal preference—it also depends on the broader market environment. When the market is highly volatile, USDT-M Futures or USDC-M Futures can help limit your risk of sharp price swings. We recommend that new users start with USDT-M or USDC-M perpetual futures, as they're easier to use and offer more manageable risks. Experienced traders, on the other hand, can choose Coin-M Futures based on market trends to hedge their positions or potentially benefit from asset appreciation.

Related articles

• Bitget beginner's guide — What are futures?

• Bitget beginner's guide — How to trade futures

• Bitget beginner's guide — A comprehensive introduction to perpetual futures and delivery futures