Kraken, one of the leading global crypto exchanges, takes a decisive step towards innovation with the launch of Kraken Perps.
This new feature, integrated directly into the Krak app, offers users a simple and flexible way to speculate on the future price movements of cryptocurrencies, without the need to own the underlying asset.
Available immediately in over 150 countries, Kraken Perps aims to make accessible to an increasingly wider audience a tool that until now has been predominantly reserved for more experienced traders.
What are crypto perpetual contracts
Kraken Bets on the Future of Crypto Markets
Perpetual contracts – or simply “perps” – represent one of the most interesting innovations in the digital trading landscape. Their functioning can be compared to a bet among friends on who will win the sports championship: it involves taking a position on a possible future scenario, with the difference that here the playing field is the cryptocurrency market.
With Kraken Perps, users can act on their predictions by choosing to bet on an increase (“Increase”) or a decrease (“Decrease”) in the price of a specific asset. All this without having to buy or hold the cryptocurrency directly. Unlike traditional betting, perpetual contracts do not have a fixed expiration: the position can be maintained for as long as desired, with the possibility to modify its size or close it at any time.
A concrete example
Let’s imagine that a user is convinced that bitcoin is undervalued. Instead of directly purchasing bitcoin on Kraken’s spot market, they can open a “long” position on a bitcoin perpetual contract. If the prediction turns out to be correct and the price rises, they can make a profit.
On the contrary, if you believe that a token is overvalued and likely to decline, you can open a “short” position and profit from a potential price drop.
The flexibility is maximum: if the conviction on the forecast increases, one can increase the position; if confidence decreases, it is possible to reduce the exposure or close the position.
Why Perps are Important
Democratizing Advanced Tools
Perpetual contracts have long been highly valued by professional traders for their ability to offer advanced strategies for speculation and risk management. However, their complexity has often made them less accessible to less experienced investors.
With Kraken Perps, the platform aims to radically change this scenario, offering an intuitive interface, simple language, and features designed to reduce complexity and increase user trust.
New Opportunities for Portfolio Management
The introduction of Kraken Perps is not just a new way of trading, but also offers additional tools to express market opinions, manage risk, and build more complex strategies within one’s portfolio.
It’s not necessarily about becoming a day trader, but about having more options and tools available to approach the markets in an informed and personalized way.
Security and Education at the Center
Built-in protections for risk management
Security is a top priority for Kraken. For this reason, Kraken Perps integrates a series of protections designed to help users manage risk effectively. Among these, customizable stop-losses stand out, allowing users to automatically limit losses if the market moves in the opposite direction to the initial forecast.
Crypto Educational Resources for Informed Use
Kraken accompanies the launch of Kraken Perps with a wide range of educational resources, designed to help users thoroughly understand the functioning of perpetual contracts and use them responsibly.
The goal is to provide all the necessary tools to make informed and conscious decisions, minimizing the risks associated with a superficial understanding of the product.
How to Get Started with Kraken Perps
To start using Kraken Perps, you just need to have a balance on Kraken, which will serve as collateral to open positions. At launch, it will be possible to use USD as the reference currency, but the intention is to soon expand the range of supported assets.
The user will simply need to choose the direction of their forecast (“Increase” or “Decrease”) and the position size. All directly from the Krak app, in just a few simple steps.
A Look into the Future: Kraken Perps Continually Evolving
The launch of Kraken Perps represents just the beginning of a journey of innovation aimed at making the trading of derivative instruments increasingly accessible, secure, and transparent. Kraken has already announced its intention to further expand access to this feature, continuously improve the user experience, and introduce new tools to meet the needs of a constantly growing community.
Kraken Perps thus positions itself as a benchmark for those wishing to explore new investment strategies and risk management in the world of cryptocurrencies, with the guarantee of a secure, transparent environment supported by quality educational resources.