What is Perpetual Trading?

 

Perpetual trading, also known as perpetual futures trading or perps, involves trading cryptocurrency contracts that have no expiration date. Unlike traditional futures contracts, perpetual contracts allow traders to hold positions indefinitely, as long as they maintain the required margin. This flexibility makes them popular for speculating on price movements without the need to constantly manage expirations. 

 

 

 



‍How To Sign Up & Log In To Drift Using Email

 

1. Sign Up

First, head over to my referral link

https://app.drift.trade/ref/ofonsdrift click on “Connect" in the top-right corner.‍

Sign up using your preferred email address.


2. Account Activation

You'll receive an activation code to the email provided. Open a new tab to check your email for the code, head back to Drift, and enter the code into the prompt.

3. Magic Wallet

Once you've verified, you’ll receive all your Magic Wallet details. This includes your wallet address and your private key. These can be retrieved at any time using email authentication.

‍If you're new to these concepts, learn more about wallet addresses here and private keys here.

4. Private Key

To see your private key, click on “Get Private Key” and enter the email code we sent you to retrieve your private key.

As soon as your private key is revealed, save it somewhere safe and never share it with anyone!

 

Manage Your Magic Wallet

 

If you'd like to send and receive crypto currencies directly from and to your Magic Wallet, go to the Drift app, log into your account, click "Main Account" in the top-right corner, and select "Manage Magic Wallet". In addition to sending and receiving funds, you can also access your private key and see your token balances.

To trade on Drift, you'll need enough SOL to cover account fees (refundable) and transaction fees.

In the next step, you can fund your Drift account with either SOL or USDC.

Send funds to your wallet by using the wallet address or the QR code.  

Once you've specified the asset and the amount you’d like to deposit, click “Confirm Deposit.”

 

Funding & Deposits

How Leverage Works?

In trading, leverage is the use of borrowed funds or capital to increase your exposure to a trade, allowing you to control a larger position than your own capital would normally allow.

It's often expressed as a ratio, such as 30:1, meaning that for every $1 you invest as margin, you can control a $30 trade. While leverage amplifies potential profits, it also magnifies potential losses, making it a powerful but risky tool that requires careful risk management

What is the MACD indicator?

MACD is shorthand for "moving average convergence divergence" and was developed and popularized by Gerald Appel in the 1970s. The name implies that this indicator looks for the relative strength between 2 moving averages to identify how strong (or weak) the market's momentum is. MACD can be applied to any time frame: hourly charts, daily charts, weekly charts, and monthly charts. It has 3 parts:

  1. MACD Line: market's 12 day exponential moving average minus the market's 26 day exponential moving average
  2. Signal Line: 9 day exponential moving average of the MACD line
  3. MACD histogram: MACD Line minus the Signal Line

*These settings (12 day ema and 26 day ema) can be customized to whatever you want, but 12 and 26 are the default settings.

Here's an example diagram:

Key insights

  • MACD is a popular technical indicator that cryptocurrency traders use to identify the momentum of a cryptocurrency.
  • Key trading signals that traders look out for are the signal line crossover, zero line crossover, and bullish and bearish divergence.
  • Traders use MACD alongside other trading indicators to help them trade smarter.