Open interest shows whether money outflows or inflows into the derivatives market, and it is a reliable preliminary indicator of the mid-term Bitcoin trend. 

Explaining Open Interest in the Futures & Options Markets

Open interest refers to the total number of derivative contracts (futures or options) that remain active at the end of the trading day. Note, that the number of outstanding futures/options contracts is not a fixed number and changes by the day. That number changes as some traders open new positions and others close their existing positions. In short, open interest indicates the total number of options or futures that have not been yet settled.

Read more: Open Interest and Bitcoin Markets

Ethereum 2.0 Upgrade is Reshaping and Decentralizing the Global Financial System

Currently, Ethereum is leading the revolution of Decentralized Finance (Defi) with a market share of over 95%. However, the existing structural limitations of the network created the need for a key upgrade in 2021.

Read more: Ethereum 2.0 Upgrade -How ETH is Revolutionizing the Financial System

Bitcoin Tutorial for Starters -How to Trade Bitcoins?

Bitcoin, invented in 2008 by Satoshi Nakomoto, is the first and the most popular digital currency worldwide. You can trade Bitcoins in a Bitcoin Exchange (information at the end), but first here is some basic information about the Bitcoin currency.

Bitcoin General Information

Bitcoin is an open-source decentralized currency allowing internet users to shop online or send money around the world. Bitcoin doesn't require a credit card or a bank account and can be bought, held, or sold 100% electronically.

These are some of the advantages Bitcoin offers:

→ A low-cost way to conduct business (tight fees)

→ No need for banking accounts or debit/credit cards

→ Wide acceptance worldwide

→ Secure and Anonymous Transactions via the Bitcoin Blockchain

→ Payments via Mobile Phone

How Do Cryptocurrencies Work in General?

An electronic coin is defined as a chain of digital signatures. Each coin owner transfers the coin to the next owner by digitally signing a hash of the previous transaction and the public key of the next owner and adding these to the end of the coin. A payee can verify the signatures to verify the chain of ownership.

How Does Bitcoin Actually Work?

Actually, Bitcoin transactions are based on a peer-to-peer payment network. Unlike any other payment system, Bitcoin is not controlled by any government or non-government organization. Due to the fact that Bitcoin is a peer-to-peer system, there is no need for 3rd parties. Each and every Bitcoin transaction is made via the Bitcoin software. Any internet user can download this software. You can download it here: » https://bitcoin.org/en/download

Read more: How to Trade Bitcoins

Explaining BitMex Perpetual Contracts and Crypto Funding Rate

A Perpetual Contract trades like a Futures Contract, but never settles and never expires.

What is a Bitmex Perpetual Contract? 

Bitmex Perpetual Contracts are derivatives similar to classic Futures Contracts. These contracts enable crypto traders to speculate on both directions of the price of a cryptocurrency asset. Compared to Futures Contracts we can spot these differences:

• Perpetual Contracts don’t expire (there is no daily settlement)
• The price of a Perpetual Contract trades significantly closer to the underlying Index Price compared to a similar Futures Contract
• The primary price-spotting mechanism of a Perpetual is Funding. This mechanism allows the perpetual contract to be priced very close to the price of the spot market (explained briefly below)

What is a Perpetual Swap?

Perpetual Swaps are derivatives offered by the OKex exchange and trade similarly to Bitmex Perpetual Contracts. Again, they are like Futures Contracts, but without expiries and daily settlements.

Read more: BitMex Perpetual Contracts and Crypto Funding Rate