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How to Trade Crypto Perpetual Futures & Use Leverage

October 28, 2025

The world of crypto trading has evolved far beyond simple spot trading. One of the most powerful tools available today is crypto perpetual futures trading, a form of derivative trading that allows you to speculate on price movements, go long or short, and multiply exposure through leverage.

If you're new to derivative trading or want to sharpen your skills in perpetual futures, this guide will walk you through what they are, how they work, how to use leverage effectively, and how you can start trading them easily on Blum Perps, right inside Telegram or on the Blum Web Trading Terminal (TradeHub) soon.

What Are Crypto Perpetual Futures?

Perpetual futures are derivative contracts that let traders speculate on the future price of cryptocurrency without owning the underlying asset. Unlike traditional futures, they never expire, so you can hold your position indefinitely as long as your margin is maintained.

This flexibility makes perpetuals one of the most popular instruments in the cryptocurrency market, especially among traders seeking to profit from short-term volatility.

Long position: you profit if the price rises.

Short position: you profit if the price falls.

That means both bullish and bearish markets can offer opportunities.

Key Terms in Perpetual Futures Trading

Leverage: feature that allows you to open a larger position with less capital.

Margin: the collateral required to open and maintain a leveraged trade.

Liquidation: when your margin balance falls below the maintenance margin, the exchange automatically closes your position.

Funding Rate: a periodic fee exchanged between long and short traders that keeps the perpetual price close to the spot price.

Positive rate -> longs pay shorts.

Negative rate -> shorts pay longs.

Mark Price: a fair reference price used to calculate unrealized PnL and avoid unfair liquidations during volatility.

Understanding Leverage in Crypto Perpetual Futures

Leverage lets you magnify gains and losses.For example, with 10× leverage, a 1% price move equals a 10% change in your position value.

Example

You deposit $100 as margin and trade with 10× leverage, giving you $1,000 exposure.

– If the price moves +5%, your profit ≈ $50 (+50 %).

– If it moves –5%, your loss ≈ $50 (–50 %).

The higher the leverage, the smaller the margin for error, so responsible risk management is key.

Examples of Leverage Trading

Example 1: Going Long on ETH

ETH is trading at $4,200, and you expect the price to rise.You open a long position with 5× leverage using a $500 margin (total exposure = $2,500).

– If ETH climbs 10% to a price of $4,620. Your profit ~50% (+$250).

– If ETH falls 10% to a price of $3,780. Your loss ~50 % (-$250).

Leverage amplifies every move. That's why solid risk management is essential.

Example 2: Going Short on SOL

SOL trades at $200, but you expect a correction.You open a short position with 10× leverage using a $200 margin (total exposure = $2,000).

– If SOL drops 5% to a price of $190. Your profit ~50% (+$100).

– If SOL rises 5% to a price of $210. Your loss ~50% (-$100).

Shorting lets you profit from downturns, a crucial advantage during bearish phases.

How to Trade Perpetual Futures on Blum Perps

Blum brings perpetual futures directly into Telegram, making leverage trading simple, social, and instant.

Step 1: Launch BlumSearch @BlumCryptoBot on Telegram or visit blum.io

Step 2: On the homepage, select "Perps"Pick from 28+ assets: ASTER, TWT, BNB, HYPE, SOL, TON and more.

Step 3: Deposit using Stablecoins

Fund your Perps account using USDT or USDC on Solana or TON

Step 4: Choose Direction

Long if you expect the price to go up

Short if you expect the price to go down

Step 5: Set Leverage

Decide your leverage (2×–100×). Blum automatically displays liquidation price and required margin.

Step 6: Pick Order Type

Pick between Market Order (executes instantly at the best available price) or Limit Order (sets your preferred entry price)

Step 7: Set Take-Profit (TP) and Stop-Loss (SL) (optional but recommended)

Define your risk management parameters before confirming the trade to lock in profits and control downside risk.

Step 8: Confirm Trade

Check the funding rate, risk level, and click Confirm.

Step 9: Track and Manage

Monitor open positions, set stop-loss/take-profit, or close any time.

Risks of Using Leverage

1. High Volatility: crypto prices can swing 10-20 % within hours.

2. Liquidation Risk: higher leverage = less room for error.

3. Funding Fees: long-term positions may accumulate costs.

4. Emotional Trading: avoid over-leveraging, plan entries and exits.

Pro Tip: Experienced traders often use moderate leverage (2×-5×) and risk less than 2% of their capital per trade

Why Trade Perpetual Futures on Blum

1. Instant Access in Telegram: The fastest place to trade Perps without additional apps.

2. Support Hot and Popular Tokens: Including ASTER, BNB, TWT, ZEC, VIRTUAL, HYPE, SOL, TON.

3. Earn TP (Trading Points) automatically during the Trading Epoch for extra rewards.

Final Thoughts

Perpetual futures have redefined crypto trading, allowing traders to profit in any market, hedge risk, and manage exposure with precision. When combined with disciplined risk management, they become a cornerstone tool for both new and advanced traders.

With Blum Perps, leverage trading is simpler than ever:open Telegram, choose your pair, set leverage, and trade instantly, no compromise on speed or security.

Start trading perpetual futures today and take your crypto strategy to the next level.

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