USD-M vs COIN-M Futures: Step-by-Step Guide & Transcript

[00:01] futures contracts that settle in USDT or directly in Bitcoin? And depending on what you choose, the way profits are calculated, the type coverage is done will change. Today I'm going to explain what USDSM and Coin M futures contracts are

[00:15] , how they differ, and how you can use them according to your strategy. [Applause] I'm Lautaro Rodríguez, founder of Hub Trader, and in this video we're going to see what a USDSM contract means and what

[00:29] a Coinm contract means, what their key differences are and when it's convenient to use one or the other, how to open trades in both directly from the Binance app, and in general how to use this tool to diversify

[00:41] your portfolio, trade with leverage, and hedge your positions clarify that everything we share in this video is for educational purposes, and investment advice or financial recommendations.

[00:55] What are USDSM and CoinM futures contracts? When you trade futures contracts on Binance, you have precisely these two options. And although both allow trading with leverage and without owning the asset itself, they work

[01:08] differently. USDSM futures contracts are so named because USDSM futures contracts are so named because they use USDT or USDC as collateral. This means that both your gains and losses are calculated directly in

[01:21] Stable Coins, and therefore you can easily understand how much you gain or lose in dollar value. It is an ideal option for those who already work with USDT or want to use a single currency to trade different contracts. In

[01:33] contrast, Coin Mizan futures contracts use cryptocurrencies as collateral, meaning cryptocurrencies that are not stablecoins, such as Bitcoin or uum. It is intended for those who already have crypto and do not want to convert it into

[01:47] same cryptocurrency they are trading in, they are ideal for hedging strategies, especially if you are a long-term miner or holder. For example, if you are a Bitcoin miner and want to protect yourself against a potential

[02:00] price drop, you can open a short position in a Coineme futures contract. If the price drops, you will lose value in your BTC portfolio, but you will gain that same difference in the futures contract. It's a very efficient way to

[02:12] hedge without having to sell your crypto at a low price. Now let's look at some a low price. Now let's look at some key differences between USDCM and CoinM, as they not only differ in their settlement currency, but also in

[02:24] other important aspects depending on the type of contract, such as how which user profile they are most useful for. USDSM contracts, as we said before, are settled in USDT or USDC. They are linear and allow you to trade

[02:39] different assets with only one currency. This reduces costs, since you don't have to convert your funds every time you want to trade a different cryptocurrency, and they are also settled in Stable Coins, which is much more intuitive to

[02:51] understand the results. For example, if you earn 200 USDT, you know you earned approximately $200. In contrast, Coin MC contracts settle directly in the cryptocurrency you are trading. This means that if you win a

[03:04] This means that if you win a trade on the BTC USD pair, your profit will be in BTC. This can work in your favor if the price of Bitcoin rises, because your profit also increases in value. And if you already have BTC in your wallet, you can use it

[03:17] needing to convert it. Another important difference lies in the type of contract. Both have perpetual versions, meaning they do not expire, and also quarterly versions, meaning they have a defined expiration date. But

[03:30] in the case of Coin M bonds, they can also have dual quarterly maturities, offering more flexibility for hedging strategies. So, how do we open a trade step by step? The first thing we need to do is

[03:43] create our account in three simple steps. First, we scan the QR code we enter our email address or phone number. We will receive a copy and paste into the Binance application. And that's it, we now have our

[03:57] Binance account created. So, now that we've created our futures at the bottom. In the upper left, we verify that the USDSM option is selected, which is precisely

[04:10] where we will be able to change from one to the other, that is, from USDS M to Coin M. We choose the pair, for example, BTC USDT, and adjust the leverage where it says 1x in this case or the number that appears. And remember that the higher

[04:24] the leverage, the greater the risk of liquidation. For this example, let's leave it at 1x, which would be without leverage. But if we use, for example, 10x, that is, leverage by 10, the capital with which we

[04:36] can operate would be 10 times greater. Next, we choose the type of margin: isolated or cross. If we select isolated, the risk is limited to that position only, and if we select cross, the margin is shared

[04:50] with other positions. In other words, the isolated mode does not affect other positions, while the crossed mode does. Next, we choose the order type, in this case market, if we want to enter at the current price, we place the amount

[05:03] to trade and we click buy long if we believe the price will rise or we click sell short if we believe it will fall. In this case, we click where it says " sell short," waiting for the price to drop, and that's it. This way we have already

[05:16] opened our position and if the price goes down we will generate example directly from the application, but in this case with Coin M. To do this, on the same futures screen, tap in the upper left corner

[05:29] where you can switch to Coin M. Similarly, select the pair you want to trade, such as BTC/ USD Perpetual. Although here, as we said before, we can choose the pair we want. If you don't already have

[05:42] BTC in your futures account, simply click on the yellow arrows to transfer from your spot wallet to your transfer and that's it, our bitcoins will have been transferred from the

[05:55] Spot account to the Coine futures account . And now, having BTC as margin, we follow exactly the same steps as before. We adjust the leverage, choose whether we want it to be isolated or cross, choose the

[06:08] order type, then the amount, and execute the operation by pressing where it says buy long if we expect it to go up or sell short if we expect it to go down. is exactly the same, but the currency you operate with and how

[06:22] your profits and losses are calculated changes. So if you want to trade with a single currency for all your transactions, the simplest thing is to use USDSM. If you already own crypto and don't want to sell it, Coin M is a great tool to hedge your position

[06:36] without losing exposure. And in both cases, pay attention to everything we saw today, including leverage, order type, and your overall futures contracts allow you to profit from both rising and falling prices, but they

[06:49] don't know how to use them properly. Now, if you want to save a lot of money on all Binance, you can create your account by scanning this QR code that appears on the screen. Not only will you be able to create your account in simple steps by entering your email

[07:03] and creating a password, but you will also get discounts on absolutely all the transactions you make. And the best part is that this discount is for expiration date, unlike quarterly contracts. In the next

[07:16] episode, I'm going to show you what the special assets BF USD and LD USDT are so you can get the most out of them, taking advantage of all their benefits without compromising your capital. So, see you in the next episode.

[07:40] [Applause] [Music]