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In recent years, the gaming world has experienced a revolutionary shift with the advent of GameFi. Combining the thrill of gaming with the financial rewards of decentralized finance (DeFi), GameFi offers players a unique opportunity to play and earn. But what exactly is GameFi, and how does it work?



In this comprehensive guide, we’ll explore the ins and outs of the GameFi ecosystem. We’ll start by defining what GameFi is and how it operates. From there, we’ll discuss the advantages of engaging with GameFi platforms, including the potential for financial gain. We’ll also provide practical tips on how to get started, including ways to maximize your earnings while playing.



However, it’s not all fun and games – understanding the associated risks is equally important. We’ll cover the potential pitfalls you need to be aware of to make informed decisions. Finally, we’ll look ahead to the future of GameFi, examining emerging trends and what they mean for gamers and investors alike.



Whether you’re a seasoned gamer, a crypto enthusiast, or someone curious about this burgeoning space, this guide is designed to give you a thorough understanding of GameFi and its exciting possibilities. Let’s dive in!



<figure class="wp-block-image"><img alt="gamefi-1.jpg" src="https://xtsupport.zendesk.com/hc/article_attachments/34966706445081" decoding="async"></figure>



<h3 id="h_01J2JJWNFB0B2ZFS73ZHF2FBER" class="wp-block-heading">Table of Contents:</h3>



<a href="#h2-1">What Is GameFi?</a>



<a href="#h2-2">How Does GameFi Work?</a>



<a href="#h2-3">What Are The Advantages of GameFi?</a>



<a href="#h2-4">How to Play and Earn with GameFi?</a>



<a href="#h2-5">What Are The Risks of GameFi?</a>



<a href="#h2-6">The Future of GameFi</a>



<h2 id="h2-1" class="wp-block-heading">What Is GameFi?</h2>



GameFi, a blend of “game” and “finance,” is revolutionizing the gaming industry by merging blockchain technology with decentralized finance (DeFi). This innovative concept allows players to earn real-world value through in-game activities. Unlike traditional video games, where in-game assets are controlled by the developers, GameFi uses blockchain to enable true ownership of digital assets. Players can trade, sell, or utilize these assets across different platforms, creating a new economy within the gaming ecosystem. By leveraging cryptocurrencies and NFTs (Non-Fungible Tokens), GameFi not only enhances the gaming experience but also provides monetary incentives, turning gaming into a potentially profitable venture.



Here’s a detailed look at the key components and concepts within GameFi:



1. Play-to-Earn (P2E):



<ul class="wp-block-list">
<li>Players can earn cryptocurrency or in-game assets with real-world value through gameplay.</li>



<li>Unlike traditional games, where in-game assets and currency have no value outside the game, GameFi enables players to convert their in-game earnings into real money.</li>
</ul>



2. Non-Fungible Tokens (NFTs):



<ul class="wp-block-list">
<li>In-game assets, such as characters, items, and land, are often represented as NFTs.</li>



<li>These NFTs can be bought, sold, and traded on various marketplaces, giving players true ownership and the ability to profit from their in-game activities.</li>
</ul>



3. Decentralized Finance (DeFi) Integration:



<ul class="wp-block-list">
<li>GameFi projects often incorporate DeFi elements such as staking, liquidity mining, and yield farming.</li>



<li>Players can stake their in-game tokens or NFTs to earn additional rewards, or participate in liquidity pools to earn a share of transaction fees.</li>
</ul>



4. Blockchain Technology:



<ul class="wp-block-list">
<li>GameFi platforms are built on blockchain networks, ensuring transparency, security, and decentralization.</li>



<li>Popular blockchains for GameFi projects include Ethereum, Binance Smart Chain, and Solana.</li>
</ul>



5. Governance Tokens:



<ul class="wp-block-list">
<li>Some GameFi projects issue governance tokens, giving players the ability to vote on game development decisions and changes to the ecosystem.</li>



<li>This creates a more community-driven and decentralized approach to game development.</li>
</ul>



6. Interoperability:



<ul class="wp-block-list">
<li>GameFi aims to create interoperable ecosystems where assets and tokens can be used across different games and platforms.</li>



<li>This contrasts with traditional games where assets are confined to a single game.</li>
</ul>



<h2 id="h2-2" class="wp-block-heading">How Does GameFi Work?</h2>



Blockchain Infrastructure:&nbsp;GameFi platforms are built on blockchain networks like Ethereum, Binance Smart Chain, Solana, or others. These blockchains provide the underlying technology for decentralization, security, and transparency. Smart contracts are used to automate and enforce the rules of the game, manage transactions, and handle the distribution of rewards. These self-executing contracts ensure that transactions and game mechanics are transparent and immutable.



Non-Fungible Tokens (NFTs):&nbsp;Items such as characters, weapons, skins, and virtual land are represented as NFTs. Each NFT is unique and can be owned, traded, or sold by players. NFTs provide true ownership of in-game assets, which can be verified on the blockchain. The scarcity and uniqueness of NFTs contribute to their value.



Play-to-Earn (P2E) Mechanics:&nbsp;Players can earn cryptocurrency or NFTs by completing tasks, winning battles, or achieving milestones in the game. These rewards can be traded on marketplaces or used within the game. Some games allow players to stake their in-game tokens or NFTs to earn additional rewards. Yield farming involves providing liquidity to decentralized exchanges (DEXs) in exchange for a share of the transaction fees or other rewards.



DeFi Integration:&nbsp;GameFi platforms may offer liquidity pools where players can deposit their tokens to provide liquidity for trading pairs. In return, players earn a portion of the trading fees. Players can earn or purchase governance tokens that give them voting rights on game development decisions, policy changes, and other aspects of the game’s ecosystem.



Marketplaces:&nbsp;Players can buy, sell, and trade NFTs and in-game tokens on various marketplaces. These transactions are facilitated by smart contracts, ensuring security and transparency. Some GameFi projects aim to create interoperable ecosystems where assets can be used across multiple games or platforms, increasing their utility and value.



Game Economy:&nbsp;The economic model of a GameFi platform, often referred to as tokenomics, defines how tokens are distributed, earned, and burned. A well-designed tokenomics model ensures a sustainable economy and incentivizes player engagement. Many GameFi platforms have their own in-game currency, which players can earn and use to purchase items, pay for services, or participate in special events.



Security and Fair Play:&nbsp;To ensure fair play, GameFi platforms often implement anti-cheat mechanisms and use the transparency of blockchain to monitor and prevent fraudulent activities. Regular security audits of smart contracts and the overall platform help protect against vulnerabilities and hacks.



<h2 id="h2-3" class="wp-block-heading">What Are The Advantages of GameFi?</h2>



One of the most compelling features of GameFi is the Play-to-Earn model. Unlike traditional games where players often spend money without any financial return, P2E allows gamers to earn real-world value. Players can earn cryptocurrency or NFTs (Non-Fungible Tokens) as rewards for completing tasks or winning battles. Game assets are tokenized, giving players true ownership and the ability to trade, sell, or rent these assets within and outside the game ecosystem.



GameFi leverages blockchain technology, which ensures transparency and decentralization. Blockchain technology ensures that all transactions and game mechanics are transparent and tamper-proof, leading to fair and trustless gameplay. Many GameFi projects operate on decentralized platforms, allowing players and stakeholders to have a say in game development and updates through governance tokens.



Developers can also reap significant benefits from the GameFi ecosystem. Through Initial Game Offerings (IGOs), developers can raise funds directly from the community, reducing reliance on traditional financing methods. Developers can earn a percentage from every transaction or trade made within their game, creating continuous revenue streams.



GameFi introduces a new level of engagement and immersion. Players can use their assets across multiple games and platforms, enhancing the overall gaming experience. Ongoing updates and community-driven enhancements keep the game fresh and engaging.



GameFi opens up financial opportunities for a wider audience. People from regions with limited economic opportunities can earn through gaming, providing a new avenue for income. Many GameFi platforms allow users to start playing and earning with minimal initial investment.



The GameFi ecosystem fosters strong communities. Many games encourage collaboration and teamwork, fostering stronger community bonds. Communities centered around shared gaming interests can drive greater engagement and loyalty.



<h2 id="h2-4" class="wp-block-heading">How to Play and Earn with GameFi?</h2>



Step 1: Choose a GameFi Platform



<ul class="wp-block-list">
<li>Start by selecting a GameFi platform that aligns with your interests. Popular platforms include Axie Infinity, Decentraland, and The Sandbox. Each offers unique gameplay mechanics and earning opportunities.</li>
</ul>



Step 2: Set Up a Wallet



<ul class="wp-block-list">
<li>To participate in GameFi, you need a digital wallet that supports cryptocurrency transactions. MetaMask and Trust Wallet are popular choices. These wallets will store your in-game earnings and assets.</li>
</ul>



Step 3: Purchase Initial Assets



<ul class="wp-block-list">
<li>Most GameFi games require an initial investment in the form of NFTs or tokens. For example, to start playing Axie Infinity, you’ll need to buy Axies—digital creatures used within the game. Use your wallet to purchase these assets from marketplaces like OpenSea.</li>
</ul>



Step 4: Learn the Game Mechanics



<ul class="wp-block-list">
<li>Spend some time understanding the gameplay and earning mechanics. Each game has unique rules and strategies. For instance, in Axie Infinity, players earn through battles, breeding Axies, and completing adventures.</li>
</ul>



Step 5: Participate and Earn



<ul class="wp-block-list">
<li>Play: Engage in various in-game activities such as completing quests, battling other players, or building and trading assets.</li>



<li>Earn: Depending on the game, you can earn in-game currency, NFTs, or both. These can often be traded for other cryptocurrencies or sold on marketplaces.</li>



<li>Staking and Yield Farming: Some GameFi platforms offer additional earning opportunities through staking and yield farming, where you can earn rewards by locking up your assets.</li>
</ul>



Tips for Maximizing Earnings



<ul class="wp-block-list">
<li>Stay Informed: Follow game updates and community forums to stay ahead of new earning opportunities and strategies.</li>



<li>Diversify Your Assets: Don’t put all your eggs in one basket. Spread your investments across different games and assets to mitigate risks.</li>



<li>Engage with the Community: Join Discord channels, Reddit forums, and other communities related to your game. Networking can provide valuable insights and tips.</li>



<li>Regularly Monitor the Market: Keep an eye on the value of your in-game assets and cryptocurrencies. The market can be volatile, and timing your trades can maximize your earnings.</li>
</ul>



<h2 id="h2-5" class="wp-block-heading">What Are The Risks of GameFi?</h2>



Financial Risks:&nbsp;Tokens earned in GameFi platforms can be highly volatile. Their value can fluctuate wildly, influenced by market speculation, changes in player base, and broader cryptocurrency market trends. This volatility can lead to significant financial losses if the value of the tokens decreases sharply. The decentralized nature of GameFi makes it a fertile ground for fraud and scams. Unverified projects may lure users with promises of high returns, only to disappear with their investments. It’s crucial to conduct thorough research and due diligence before investing in any GameFi platform.



Security Risks:&nbsp;GameFi platforms often rely on smart contracts to execute transactions and manage in-game economies. However, these contracts can have vulnerabilities or bugs that hackers can exploit, potentially leading to the loss of assets. Both centralized servers and decentralized systems can be targets for cyber-attacks. Hacks and data breaches can compromise user information, steal assets, and disrupt gameplay, causing both financial and personal distress.



Operational Risks:&nbsp;Many GameFi platforms rely on continuous user growth to sustain their economies. If the player base declines or if the game fails to attract new users, the in-game economy can collapse, rendering assets worthless. Technical issues such as server downtimes, bugs, and poor user interface can hamper the gaming experience and lead to loss of interest among players. Ensuring robust technical infrastructure is critical for the success and reliability of any GameFi platform.



Social Risks:&nbsp;The blend of gaming and finance can create an addictive environment, particularly when real money is involved. The thrill of earning and the fear of missing out can lead to compulsive behaviors similar to gambling addiction. GameFi platforms often have strong community elements. Toxic behavior, harassment, and other negative social interactions can diminish the gaming experience and lead to mental health issues for some players.



<h2 id="h2-6" class="wp-block-heading">The Future of GameFi</h2>



<h3 id="h_01J2JK76RQ3GRBXKT16FTVTX5D" class="wp-block-heading">Enhanced Immersive Experiences</h3>



The next generation of GameFi will likely prioritize immersive experiences. With advancements in virtual reality (VR) and augmented reality (AR), players could soon find themselves in more lifelike, interactive environments that make the gaming experience more engaging and rewarding.



<h3 id="h_01J2JK7D1W0Y6CFC2AFQK18WRF" class="wp-block-heading">Interoperability and Cross-Platform Play</h3>



Imagine carrying your favorite sword from one game into another entirely different game. Interoperability between different GameFi platforms and traditional games could become a reality, thanks to blockchain technology. This would allow for greater asset utility and player freedom, making the gaming ecosystem more interconnected than ever.



<h3 id="h_01J2JK86599M022VDPJSPD9SVE" class="wp-block-heading">Sustainable Play-to-Earn Models</h3>



While the play-to-earn model has been revolutionary, it faces sustainability challenges. Future GameFi projects will need to create more balanced economic systems to ensure long-term viability. This could involve incorporating DeFi elements like staking and yield farming to create additional revenue streams for players and developers alike.



<h3 id="h_01J2JK8DAAHX208M0FWQJVP0GN" class="wp-block-heading">Enhanced Security Measures</h3>



Security will become increasingly crucial as GameFi attracts more users and higher stakes. Future platforms will focus on robust security protocols to protect users from hacks, scams, and fraud, ensuring a safer gaming environment.



<h3 id="h_01J2JK8MRJD1QVNPCM3YC3GF22" class="wp-block-heading">AI and Machine Learning Integration</h3>



Artificial intelligence (AI) and machine learning could significantly impact GameFi. From creating smarter in-game characters to providing personalized gaming experiences based on player behavior, these technologies offer endless possibilities for enhancing gameplay.



<h3 id="h_01J2JK91SQ8SRC8VYNT3XX92NH" class="wp-block-heading">Regulatory Developments</h3>



As GameFi grows, it will undoubtedly attract regulatory scrutiny. Future developments in the sector will need to consider compliance with international laws and regulations to ensure sustainable growth and mainstream acceptance.



Start trading GameFi Coins&nbsp;Hamster Kombat (<a rel="noreferrer noopener" target="_blank" href="https://www.xt.com/en/trade/hmstr_usdt">HMSTR USDT</a>) and Notcoin (<a rel="noreferrer noopener" target="_blank" href="https://www.xt.com/en/trade/not_usdt">NOT USDT</a>) with XT.COM!



<h3 id="h_01J2JK97DZ64N29W4GEVESYKNE" class="wp-block-heading">About XT.COM</h3>



Founded in 2018,<a href="http://www.xt.com/en">&nbsp;XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM<a href="https://www.xt.com/en">&nbsp;crypto exchange</a>&nbsp;supports a rich variety of trading, such as<a href="https://www.xt.com/en/trade/btc_usdt">&nbsp;spot trading</a>,<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">&nbsp;margin trading</a>, and<a href="https://www.xt.com/en/futures">&nbsp;futures trading</a>&nbsp;together with an aggregated<a href="https://www.xt.com/en/nft">&nbsp;NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.

What Is GameFi? A Comprehensive Guide to the GameFi Ecosystem

In the continuous evolution of the digital landscape, Bitcoin remains a cornerstone, captivating with its decentralized charm and unmistakable flair for innovation. Among its latest intrigues are ‘Ordinals,’ a term that has been lighting up crypto forums and social media with both excitement and a touch of mystery.



But what precisely are Ordinals? Many are familiar with the concept of non-fungible tokens (NFTs) on Ethereum and other blockchains, yet Bitcoin, with its script-focused and no-frills design, had long abstained from such tokenized fanfare. That is, until now. ‘Bitcoin Inscriptions’ or ‘Ordinals’ now emerge as a novel concept, rewriting the narrative of what’s possible on Bitcoin’s blockchain.



In this article, we’ll delve deep into the world of Bitcoin Ordinals, exploring every crevice of this new phenomenon. From the basic principles of what Ordinals are, to the implications they hold for the future of digital artifact inscription on the Bitcoin blockchain, we are set to unravel the layers of this fascinating new development.



<figure class="wp-block-image"><img alt="bitcoin-inscription-1.jpg" src="https://xtsupport.zendesk.com/hc/article_attachments/28337611205273" decoding="async"></figure>



<h3 id="h_01HNMP62D5N7C4C79TJS95FNQQ" class="wp-block-heading">Table of Contents:</h3>



<a href="#h2-1">What is the bitcoin inscription?</a>



<a href="#h2-2">How does bitcoin inscription work?</a>



<a href="#h2-3">What are Ordinals?</a>



<a href="#h2-4">History of ordinals development</a>



<a href="#h2-5">How are Bitcoin Ordinals different from NFTs?</a>



<a href="#h2-6">Types of Ordinals</a>



<a href="#h2-7">Benefits and use cases of Ordinals</a>



<a href="#h2-8">Common challenges and risks</a>



<h2 id="h2-1" class="wp-block-heading">What is the bitcoin inscription?</h2>



At its core, a Bitcoin Inscription is a method of embedding data within Bitcoin transactions. This data is immutable, meaning once it’s written into the blockchain, it cannot be altered or removed – a digital time capsule of sorts within the world’s most well-known cryptocurrency.



With the immutable nature of Bitcoin Inscriptions, they provide a unique opportunity to immortalize information on the blockchain. These inscriptions can include text, images, and even more complex data types. Each entry becomes a permanent part of the Bitcoin network’s history, providing a decentralized and censorship-resistant platform for storing data.



This functionality extends Bitcoin’s applications well beyond just a currency, as it offers a means for creators, individuals, and organizations to make their mark within the digital ledger. Bitcoin Inscriptions turn every transaction into a potential carrier of meaningful and lasting information, fostering an innovative environment for digital expression and data preservation.



<h2 id="h2-2" class="wp-block-heading">How does bitcoin inscription work?</h2>



Inscriptions within Bitcoin transactions can store various types of data, offering value in terms of data preservation and uniqueness. These inscriptions can mark a transaction with a significant piece of information, from simple messages to more complex data.



The accessibility of Bitcoin Inscriptions cannot be overstated; they empower users to leave a permanent imprint on the blockchain. The data is inscribed directly into a satoshi, which is the smallest unit of the Bitcoin currency, much like how authors inscribe first editions or artists sign their works. This ‘digital autograph’ brings a personal touch to the blockchain and, essentially, democratizes the act of making history. Users now have the platform to record anything from intellectual property to moments of personal significance, all within the framework of a secure and enduring ledger.



As Bitcoin continues to permeate various aspects of our digital lives, the implications of Bitcoin Inscriptions will likely become more profound. They offer a distinct blend of art, memory, and technology – preserving the threads of our digital discourse and serving as milestones in the tapestry of blockchain’s expansive narrative. This metamorphosis of data storage challenges traditional concepts of ownership and legacy, fostering a new culture of digital permanence.



Reflecting on the sensational growth of Bitcoin Inscriptions, it’s important to consider the implications for blockchain space utilization. As more data is immortalized on the Bitcoin blockchain through inscriptions, concerns arise over the potential strain on the network’s capacity. This raises critical questions about the blockchain’s ability to sustain an ever-increasing load of non-financial data, whether the current infrastructure can accommodate such growth, and if not, what innovations will be required to facilitate this expansion. It’s a dialogue between scalability and permanence, where the ideological underpinnings of a decentralized ledger meet the pragmatic challenges of a system built upon limited resources. As the community continues to push the boundaries of Bitcoin’s capabilities, it’s clear that the dialogue around blockchain scalability and functionality is far from over.



<h2 id="h2-3" class="wp-block-heading">What are Ordinals?</h2>



Ordinals, within the Bitcoin milieu, refer to numerical values that are uniquely attributed to specific satoshis, which are the smallest units of Bitcoin (BTC). Think of it as a serial number for every fraction of a Bitcoin, giving each piece a particular identity that can be tracked and referenced on the blockchain.



In traditional financial systems, currency units are interchangeable and indistinguishable. However, ordinals introduce a sense of individuality to each satoshi, allowing for a high level of traceability and adding a new layer of functional intricacy to Bitcoin transactions.



The concept of ordinals is intrinsically linked to the nature of Bitcoin as a digital currency. Unlike fiat money, which treats each unit as interchangeable, ordinals highlight the unique digital existence of each satoshi. By distinguishing individual satoshis through ordinal numbers, users gain the ability to assign specific characteristics or data to a particular unit of value within the Bitcoin network.



This approach paves the way for a new form of digital assets – one where every satoshi has the potential to carry its own distinct identity and history. This uniqueness can transform satoshis into collectibles, akin to rare coins or unique artworks in the physical world, each with its own story and value. As the crypto-community begins to embrace the significance of individual satoshis, we may witness the emergence of a novel market for these uniquely inscribed digital tokens.



<h2 id="h2-4" class="wp-block-heading">History of ordinals development</h2>



Ordinals have their roots in early Bitcoin functionality but have since taken on greater significance with the introduction of inscription capabilities.



The gradual sophistication of ordinals has led to an increase in their visibility and utility within the Bitcoin ecosystem. Originally serving as markers or reference points, ordinals have transitioned toward becoming a cornerstone for various innovative applications. One remarkable shift has been their use in tokenized artwork, where the uniqueness of a satoshi can embody the digital rarity and ownership of a piece of art. This digital provenance afforded by ordinals not only ensures authenticity but also allows for a new dimension of interaction between the creator and the collector. As the technology matures, we might see more intricate uses, such as in digital identities, property rights management, and even in enhancing the granularity of smart contracts. This evolution of ordinals represents a growing acknowledgment of Bitcoin not just as a currency, but as a foundational layer for a new generation of internet protocols and digital interactions.



The dynamic nature of Bitcoin ordinals also introduces an intriguing dimension of scarcity to the digital realm. Just as traditional artists can release limited edition prints or cast a finite number of sculptures, Bitcoin artisans can limit the circulation of inscribed satoshis. This scarcity can endow these digital objects with a rarity that is meticulously documented and verifiable, attracting collectors and investors alike. In essence, the Bitcoin network could emerge as a grand ledger of digital collectibles, providing a secure and transparent provenance trail. Moving beyond collectibles, ordinals could underpin various novel use cases, such as enabling unique digital experiences or ushering in an era of satoshi-based microtransactions. This developing paradigm heralds a rethinking of digital ownership and the concept of value in a world where the digital and physical increasingly converge.



<h2 id="h2-5" class="wp-block-heading">How are Bitcoin Ordinals different from NFTs?</h2>



Ordinals, by anchoring uniqueness to each satoshi, differentiate themselves from NFTs (non-fungible tokens) which are typically hosted on alternative blockchains like Ethereum. The implications for collectability and ownership tracking are profound.



While NFTs function primarily as certificates of ownership for digital assets, Bitcoin ordinals embed the asset’s essence within the blockchain, creating a more direct and intrinsic connection. This intrinsic linking carries the potential to alter perceptions of value and rarity in the digital space. With each satoshi being identifiably unique and immutable, the possibility for one-to-one correlations between the digital and physical worlds becomes more tangible. Collectors can acquire digital items that hold as much distinction as a rare physical object, and artists can ensure their creations maintain an unbreakable bond to their origins. As we observe the landscape of digital art and collectibles evolve, the role of Bitcoin ordinals in providing a stable and unalterable provenance is likely to become even more significant. This carving out of identity and ownership within the immutable layers of Bitcoin indicates not just a new chapter for the art world, but a blueprint for the future of digital property as a whole.



With their ability to embed a digital asset directly within Bitcoin’s blockchain, ordinals are not just transforming the concept of ownership but are also offering a boon to digital conservationists. The permanence provided by the blockchain ensures that digital arts and collectibles encapsulate perpetuity, standing the test of time in a way that surpasses even physical artifacts. These unique digital assets are impervious to decay, loss, or destruction, which often plagues tangible collectibles, making them an attractive proposition for both preservationists and collectors.



<h2 id="h2-6" class="wp-block-heading">Types of Ordinals</h2>



Inscriptions in Bitcoin come in various forms, which determine the way ordinals are managed and utilized. Here are the primary types:



<ul class="wp-block-list">
<li>Public Key Hash (PKH): A shortened version of a public key that uses hashing for an extra layer of security.</li>



<li>Script Hash (SH): Allows users to lock funds to a script rather than a public key.</li>



<li>Witness Public Key Hash (WPKH): An abbreviated form of the PKH used in SegWit Bitcoin transactions for better data management and reduced fees.</li>



<li>Witness Script Hash (WSH): Similar to WPKH, this is utilized for script-based transactions within the SegWit structure.</li>
</ul>



<h2 id="h2-7" class="wp-block-heading">Benefits and use cases of Ordinals</h2>



These distinctive inscriptions carry a host of advantages that extend beyond simple transaction tracking:



<ul class="wp-block-list">
<li>Improved Security and Privacy: Ordinals can help mask the details of a transaction, providing an additional privacy layer by abstracting the association between transaction histories and public addresses.</li>



<li>Scalability Solutions: With increased scrutiny on Bitcoin’s ability to handle a vast number of transactions, ordinals offer potential pathways to scalability through methods that minimize the data required for verification.</li>



<li>Lightning Network Integration: The utilization of ordinals dovetails nicely with secondary-layer solutions like the Lightning Network, which aims to facilitate faster and more cost-effective Bitcoin transactions.</li>
</ul>



In addition to the technical underpinnings and benefits, the cultural implications of ordinals are equally noteworthy. By allowing artists and creators to mint original works directly onto Bitcoin’s blockchain, there is a burgeoning ecosystem that merges art, culture, and technology. Akin to the Renaissance period where art flourished with the patronage of wealthy benefactors, the digital age ushers in a new era for creators – bolstered now by the democratic and decentralized nature of blockchain technology. This enables a diverse range of voices to contribute to the cultural tapestry of the digital realm, unhindered by traditional barriers to entry such as geography or financial constraint.



Moreover, the role of ordinals extends into realms such as provenance verification for collectibles, gaming assets, and even digital identity authentication. The ability to trace the lifetime journey of a digital asset from creation to its various points of ownership gives unparalleled transparency to the digital economy. This transparency is not only a boon to creators and collectors but also to those who seek to preserve the authenticity and heritage of digital artworks and other valuable digital assets. As the technology and its applications evolve, we can expect ordinals to play a significant role in shaping the landscape of digital ownership and the valorization of digital arts and goods.



<h2 id="h2-8" class="wp-block-heading">Common challenges and risks</h2>



While ordinals contribute significantly to Bitcoin’s development, they also pose certain challenges and expose vulnerabilities:



<ul class="wp-block-list">
<li>Potential Vulnerabilities and Attacks: The uniqueness of ordinals may be exploited if not properly safeguarded, leading to targeted attacks on specific satoshis.</li>



<li>Regulatory Concerns and Legal Implications: As regulators grapple with the rapid innovation in cryptocurrencies, the distinct nature of ordinals could complicate the legal classification of digital assets.</li>
</ul>



<h3 id="h_01HNMP8954HHNB9HBDWTDW5ZMJ" class="wp-block-heading">Conclusion</h3>



Ordinals represent another step forward in the dynamic world of Bitcoin and cryptocurrencies. They offer a fascinating angle from which to view and understand the nuances of blockchain transactions. Whether you are an investor, a hobbyist, or simply curious about this next era of technology, it’s clear that ordinals have a pivotal role to play in shaping the future of digital finance.



For those tethered to the Bitcoin odyssey or anyone who yearns to decode the sophisticated constructs beneath the surface, delving into the realm of ordinals is not just a scholarly endeavour but a practical pursuit, unlocking a future where digital transactions are as nuanced as they are revolutionary. Keep your explorations going, for in the world of Bitcoin, every new piece of knowledge is a potential key to unlocking untold opportunities.



<h3 id="h_01JD8WKTVHSCQW46WDJWS4PHA3" class="wp-block-heading">About&nbsp;XT.COM</h3>



Founded in 2018,&nbsp;<a href="http://www.xt.com/en">XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;supports a rich variety of trading, such as&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt">spot trading</a>,&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">margin trading</a>, and&nbsp;<a href="https://www.xt.com/en/futures">futures trading</a>&nbsp;together with an aggregated&nbsp;<a href="https://www.xt.com/en/nft">NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.

What Are Ordinals? Bitcoin Inscriptions Explained

<figure class="wp-block-image"><img alt="USDT-M-PERPETUAL-COVER-EN.jpg" src="https://xtsupport.zendesk.com/hc/article_attachments/13563167226393" decoding="async"></figure>



<h3 class="wp-block-heading">Contents of this article</h3>



<a href="#h2-1">What are USDT Margined futures contacts?</a>



<a href="#h2-2">What are USDT Margined (Collateralized) perpetual contracts?</a>



<a href="#h2-3">How to trade USDT Margined Perpetual Futures on XT.COM</a>



<h2 id="h2-1" class="wp-block-heading">What are USDT Margined futures contacts?</h2>



USDT Margined futures contracts are a type of financial instrument that allow traders to buy and sell commodities, equities, or other assets using USDT as collateral. These contracts give traders the ability to take positions in volatile markets while maintaining minimal exposure to risk, since they can liquidate their contract at any time by redeeming their USDT collateral. Additionally, many exchanges like&nbsp;<a href="https://www.xt.com/en/futures">XT.COM futures</a>&nbsp;offer margin trading for USDT Margined futures contracts, allowing investors to leverage their capital and increase their potential returns. This means that investors can leverage their capital by borrowing additional funds from the exchange based on the value of their initial position. While this can lead to higher returns, it also increases the risk of losses if the market moves against their position. Overall, USDT Margined futures contracts are a valuable tool for traders and speculators looking to participate in the fast-paced world of financial markets. Whether you are looking to take short positions or make long-term investments, these contracts can help you achieve your trading goals by allowing you to trade with minimal capital and take advantage of changing market conditions.



<h3 id="h_01JD8TTXD5Y10R0FGK1018RGF9" class="wp-block-heading">Characteristics of USDT-margined Contracts&nbsp;</h3>



USDT-margined futures contracts are more suitable for risk hedging and arbitrage. Due to the fact that there is no borrowing and lending of funds, the participants do not need to pay interest on their positions, so that they can benefit from a higher trading margin rate. Compared with other traditional products, USDT-margined futures contracts are less risky and more efficient. Furthermore, USDT-margined futures contracts enable investors to take either long or short positions, offering them a much wider range of choices.



Profit in USDT and know exactly what you’ll make! USDT-margined contracts take the guesswork out of cryptocurrency trading. By using a stablecoin pegged to the US dollar, traders can easily estimate their returns – no more having to convert BTC into fiat or being unsure of what that 500 was worth at conversion time. With these linear futures products, making profits simply means standing by as your account balance steadily increases in real U.S dollars – just like folding money!



<h3 id="h_01JD8TTXD5HCKND7PPRRT6R0QC" class="wp-block-heading">Mechanism for USDT-margined Contract</h3>



USDT-margined contracts implement price-time-priority algorithm, the earliest active buy order at the highest price takes priority over any subsequent order at that price, which in turn takes priority over any active buy order at a lower price. When the margin ratio is equal to or less than 0, liquidation will be triggered for the position.



The formulas are as below:



Isolated Margin Ratio = Account Equity / Occupied Margin * 100% – Adjustment Factor;



Cross Margin Ratio = Account Equity / ∑All Contracts in the Cross Margin Account (Occupied Margin * Adjustment Factor）– 100%



<h2 id="h2-2" class="wp-block-heading">What are USDT Margined (Collateralized) perpetual contracts?</h2>



USDT Margined (Collateralized) perpetual futures contracts are a new type of investment instrument, which enable traders to speculate on the value of cryptocurrencies. This type of contract allows traders to effectively ‘borrow’ USDT from the underlying exchange in order to leverage their trades, with the USDT collateral being held as security for any potential losses or gains that may arise from opening and closing these positions. The contract has no expiration date and is designed to closely track the spot price of the underlying asset via Funding mechanism. This perpetual structure provides perpetual liquidity, meaning there is no need to roll over trades or wait for the expiration of existing contracts. While it is certainly a risky venture due to its high-leverage nature, USDT margined perpetual futures contracts are attractive to experienced traders who want more control over their investments and exposure through more precise risk management strategies.



Take USDT Collateralized BTC Perpetual Contract as an example, a trader longs 1,000 contracts at a price of 10,000 USDT, and the value of a contract is 0.001 BTC. Equivalently, they are longing 1,000 * 0.001 = 1 BTC. P&amp;L Calculation equals to No. of Contracts * Multiplier * (Exit Price – Entry Price). After several days, the price rises to 12,000 USDT, so trader earn a profit of 1,000 * 0.001 * (12,000 – 10,000) = 2,000 USDT. On the contrary, a trader who is shorting the same amounts of contracts will lose 2,000 USDT during this time. (Fees are not included)



<h3 id="h_01JD8TTXD56FF2AQJB6PKFYGNF" class="wp-block-heading">Terminology</h3>



<ul class="wp-block-list">
<li>P&amp;L</li>
</ul>



P&amp;L stands for Profit &amp; Loss. All USDT collateralized contracts use USDT to calculate PnL. The Profit and Loss (PnL) is calculated as {future exit price- future entry price} x position size/future entry price. When calculate the PnL of&nbsp;<a href="https://www.xt.com/en/futures">XT.COM Futures</a>&nbsp;USDT Margined futures contacts, traders need to consider three aspects: the expenditure of service fees, the income or expenditure of funding fees, and the profit and loss of closing positions. Click&nbsp;<a href="https://xtsupport.zendesk.com/hc/en-us/articles/7279950434073-Profit-and-Loss-Calculation">here</a>&nbsp;to check more details.



<ul class="wp-block-list">
<li>Leverage and Margin</li>
</ul>



Leverage in these contracts allows traders to open a larger position than their capital would normally allow by trading with borrowed funds. Leverage is an extremely powerful tool that can be used to increase both gains and losses when trading perpetual futures contracts. Leverage also impacts the amount of margin required to open a position since higher leverage equates to a lower initial margin requirement. Leverage is therefore a critical factor for traders looking at perpetual futures contracts and should be carefully considered if utilizing this type of contract.



Margin refers to the difference in margin requirements between margin deposits and margin calls. Margin deposits are the funds placed into an account for margin purposes, whereas margin calls require additional funds due to market changes or potential losses. Thus, margin establishes the amount of money required to have reasonable protection from adverse price movements and to from losses in a perpetual futures contract. This helps maintain stability in the markets and enables traders to enter positions with reasonable certainty that their margin requirements will not be detrimental if prices move against them.



<ul class="wp-block-list">
<li>Liquidation</li>
</ul>



Liquidation in a perpetual futures contract is when a trader’s account balance falls to an amount that doesn’t meet the maintenance margin. This happens when the losses that are associated with their open trades surpass the available margin in their trading account. Liquidation acts as a mechanism to ensure that traders continually maintain sufficient funds in their trading accounts to honor the risk associated with their open positions. Liquidation also helps traders avoid unfavorable pricing caused by illiquid markets or manipulation of prices. Liquidation limits the potential losses of a trader while providing safe and secure markets for everyone involved.



<ul class="wp-block-list">
<li>Market Price, Mark Price and the Index Price</li>
</ul>



Market Price: Market Price is the current fair value of an underlying asset including its basis spread, funding rate, and insurance fund factor. Market Price will constantly adjust through the day from trades being executed with buyers and sellers. Market Price is used to set the amount of margin required to maintain a position in perpetual futures contract as well as when a user wishes to open a new position. Market Price plays an important role in dictating how much margin a trader or investor needs to maintain their positions on the exchange based upon their financial goals and strategies.



Mark Price: Mark Price is typically set equal to the underlying index price and acts as a reference point when executing trades and calculating margin requirements. Mark Price also serves as the starting point for Mark-to-Market calculations in which gains and losses resulting from changes in price are automatically settled within a futures contract. Mark Price allows traders of perpetual futures contracts to be able to enter and exit their positions with greater certainty that their differences will be calculated accurately and reliably.



Index Price: Index Price refers to the current market price of a perpetual futures contract. Index prices are determined by taking the average of all bids and offers in that particular contract. Index Price is an important factor regarding calculating your margin requirement when trading perpetual futures contracts, as it allows you to calculate how much money you need to set aside in order to cover potential losses on any open positions you have. If Index Price drops, then so does your margin requirement, whereas if Index Price increases, then so does your margin requirement. It is critical for traders to stay up to date with Index Price in order to adjust their strategy accordingly and remain profitable. Check&nbsp;<a href="https://www.xt.com/en/futures/information/index">XT.COM Futures index price</a>&nbsp;here.



<ul class="wp-block-list">
<li>Isolated Margin and Cross Margin</li>
</ul>



Isolated Margin: Isolated Margin is a type of margin offered with perpetual futures contracts. This type of margin allows traders to manage their risk in a more efficient way by allowing only part of their position to be automatically liquidated if there is a significant price movement. Isolated Margin also provides traders plenty of liquidity while they maintain open positions, allowing them to make more strategic decisions when the markets move quickly.



Cross Margin: Cross Margin is an optional margin mode that reduces the margin requirement for traders, allowing them to take on larger positions without having to deposit extra funds into their account. Cross Margin works by allowing traders to spread their total account collateral over all of the positions held in the same contract. Therefore, Cross Margin ensures that traders have adequate margin levels across all positions in a particular contract and can allow them to increase their position size if desired.



<ul class="wp-block-list">
<li>Perpetual Funding Rates</li>
</ul>



Funding Rates in perpetual futures contract margin is a payment that occurs between Funding Pairs. Its purpose is to encourage both Funding Providers and Funding Receivers to maintain equality between the long and short sides of the contract. Funding Rates also provide an incentive for Funding Providers by encouraging them to hold positions at, or nearer to, the Funding Target Price. A Funding Provider is anyone who is long on the contract and a Funding Receiver is anyone who is short on the contract. Funding Rates are calculated in accordance with the Spot Index Price and Fair Price Mark, payable in USDT tokens. Whenever Funding Rate occurs, all positions held within that particular perpetual futures contract will be affected, warranting frequent monitoring from involved parties. Check&nbsp;<a href="https://www.xt.com/en/futures/information/fund-rate">XT.COM Futures funding rates</a>&nbsp;here.



<ul class="wp-block-list">
<li>Risk Protection Fund</li>
</ul>



Risk Protection Fund is a mandatory fund in perpetual futures contracts which ensures that there’s always margin available to serve as collateral. Spin-off products, such as swap futures and options, also use Risk Protection Funds to back up the customer accounts in order to cover any losses over and above their own contribution. The Risk Protection Fund helps protect traders against any market force or technical issues that can cause instant liquidation of their positions due to insufficient margin. Visiting traders are only required to pay a small expense ratio instead of upfront payments, allowing them more freedom to explore new opportunities and take greater risks knowing the Risk Protection Fund has them covered. Check&nbsp;<a href="https://www.xt.com/en/futures/information/risk-fund">XT.COM Futures risk protection fund</a>&nbsp;here.



<h2 id="h2-3" class="wp-block-heading">How to trade USDT Margined Perpetual Futures on XT.COM</h2>



Welcome to our tutorial on how to trade USDT-M perpetual futures contracts.



1.&nbsp;<a href="https://www.xt.com/en/accounts/register">Register an account</a>&nbsp;or&nbsp;<a href="https://www.xt.com/en/accounts/login">log in</a>&nbsp;to XT.COM



<figure class="wp-block-image"><img alt="1-XT-signup-EN.png" src="https://xtsupport.zendesk.com/hc/article_attachments/13563575726873" decoding="async"></figure>



<figure class="wp-block-image"><img alt="1-XT-login-EN.jpg" src="https://xtsupport.zendesk.com/hc/article_attachments/13563577485465" decoding="async"></figure>



2. Click&nbsp;<a href="https://www.xt.com/en/futures">Derivatives</a>&nbsp;on the navigation bar and tap “<a href="https://www.xt.com/en/futures/trade/btc_usdt">USDT-M Futures</a>” to enter into the trading page.



<figure class="wp-block-image"><img alt="2-en.jpg" src="https://xtsupport.zendesk.com/hc/article_attachments/13563571677337" decoding="async"></figure>



3. To begin trading, choose an asset from the left panel. For example: Selecting&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">BTC/USDT Perpetual</a>.



<figure class="wp-block-image"><img alt="3-Select-asset-en.jpg" src="https://xtsupport.zendesk.com/hc/article_attachments/13563680644761" decoding="async"></figure>



4. Then, based on your judgement, choose “Open Long” or “Open Short”. You can place a bet on the future direction of the market by buying or selling contracts. A long position means you expect the market to rise, while a short position means you expect it to fall.



<figure class="wp-block-image"><img alt="4-long-short-en.jpg" src="https://xtsupport.zendesk.com/hc/article_attachments/13563680378009" decoding="async"></figure>



5. If we place a limit order, there will be three different types of limit orders that we can place: GTC, IOC, and FOK.



<figure class="wp-block-image"><img alt="5-en.jpg" src="https://xtsupport.zendesk.com/hc/article_attachments/13563667336985" decoding="async"></figure>



6. After choosing an order type, select the margin mode, unit, and leverage for trading. You can use “BTC” or “USDT” as a unit to calculate trading cost and profits.



<figure class="wp-block-image"><img alt="6-en.jpg" src="https://xtsupport.zendesk.com/hc/article_attachments/13563667591705" decoding="async"></figure>



7. Enter the price, amount, and click “Open Long” to place the order.



<figure class="wp-block-image"><img alt="7-en.jpg" src="https://xtsupport.zendesk.com/hc/article_attachments/13563667735961" decoding="async"></figure>



8. As soon as you place your order, click on “Filled Positions” to check whether it has been filled or not. The orders that have been completed will be listed under “Current Positions”, while the ones that haven’t been filled yet will be shown under “Open Orders”.



<figure class="wp-block-image"><img alt="8-en.jpg" src="https://xtsupport.zendesk.com/hc/article_attachments/13563681533977" decoding="async"></figure>



9. If you want to close a position, you can choose an order type, enter the price and amount, and choose a leverage to close the position.



<figure class="wp-block-image"><img alt="9-en.jpg" src="https://xtsupport.zendesk.com/hc/article_attachments/13563681740953" decoding="async"></figure>



<h3 id="h_01JD8TVWHVV1C43CGDX1SAE4GE" class="wp-block-heading">About XT.COM</h3>



Founded in 2018,&nbsp;<a href="http://www.xt.com/en">XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;supports a rich variety of trading, such as&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt">spot trading</a>,&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">margin trading</a>, and&nbsp;<a href="https://www.xt.com/en/futures">futures trading</a>&nbsp;together with an aggregated&nbsp;<a href="https://www.xt.com/en/nft">NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.

What is USDT-M Perpetual Futures Trading and How to Trade USDT-margined Futures on XT Futures

The Bitcoin halving is a key event in the crypto world, and one that impacts both miners’ rewards as well as price speculation. On May 11th 2020 we saw this happen for the third time since its inception over ten years ago, cutting miner reward per block from 12.5 BTC to 6.25 BTC. This has caused some unease among investors who are used to ever-increasing returns from mining activities but with it placing further constraints on supply of new coins means scarcity should potentially increase which could see prices rise again when speculators enter back into markets after 2024’s likely 4th halving round occurs!



<figure class="wp-block-image"><img alt="bitcoin-halving-1.jpg" src="https://xtsupport.zendesk.com/hc/article_attachments/13897339173017" decoding="async"></figure>



<h3 class="wp-block-heading">Table of Contents</h3>



<a href="#h2-1">What is Bitcoin halving?</a>



<a href="#h2-2">How does Bitcoin halving work?</a>



<a href="#h2-3">How to trade Bitcoin halving?</a>



<a href="#h2-4">Why Bitcoin halving occurs?</a>



<a href="#h2-5">What happens to Bitcoin prices during halving?</a>



<a href="#h2-6">What are implications of the Bitcoin halving event?</a>



<h2 id="h2-1" class="wp-block-heading">What is Bitcoin halving?</h2>



Bitcoin halving is a process that occurs roughly every four years where the reward for mining new blocks is halved, meaning miners receive 50% fewer bitcoins for verifying transactions. This reduction in bitcoin supply has been implemented to control bitcoin inflation, making bitcoin an increasingly scarce resource over time. After every four years, the block rewards halving occurs and will proceed up until 2140 when it reaches completion. By that point in time, Bitcoin’s maximum supply limit would have been reached – shifting miners’ incentives to transaction fees provided by users for verifying transactions. As bitcoin becomes more and more scarce, speculation in its future value increases, thus raising its overall market price – something that any early bitcoin adopter should be sure to keep an eye on. Additionally, bitcoin halving encourages miners to increase efficiency by pushing them to develop new methods of creating bitcoin faster or else face losing out on rewards. As such, bitcoin halving offers an interesting insight into the delicate balance between production and demand in matters of digital currency.



<figure class="wp-block-image"><img alt="bitcoin-halving-rewards.png" src="https://xtsupport.zendesk.com/hc/article_attachments/13897552442905" decoding="async"></figure>



<h3 id="h_01JD8VMEQ6GP7A11ZWQA54DEA4" class="wp-block-heading">The history of Bitcoin halving</h3>



Bitcoin has seen immense growth since its inaugural 2009 launch, with the first halving occurring in 2012. This event sparked questions of how Satoshi’s economic principles would shape Bitcoin’s future – will it succeed or collapse? On November 28th, 2012 the reward for mining a single block reduced from 50BTC to 25BTC; this event was met by incredible success as 1 BTC surged over 8500% within twelve months to a staggering $1,031.95. By that time 210,000 blocks had been mined and half of all Bitcoin (10.5 million) entered circulation.



The crypto community were eagerly awaiting the second halving in 2016, with investors beginning to take more of an interest and increased acceptance for bitcoin. This heightened anticipation led to a short-term price growth ahead of July 9th’s highly anticipated date. When the commitment of miners to Bitcoin was renewed with block 420,000 and rewards were halved to 12.5 BTC per mined block, some cautionary market behavior ensued as predicted. As it turns out however, this hesitation only served to establish a platform for unprecedented growth and success; 526 days later one bitcoin reached an unsurpassed peak value of $20k – exceeding even the most optimistic evaluations.



With the 2020 halving, Bitcoin was entering a new era amidst much uncertainty due to the COVID-19 crisis. The economics of Satoshi’s design proved powerful as BTC surged from an eventual $8787/BTC rate around May 11th at block number 630,000 all way up to over $66K/BTC 18 months later – showcasing its resilience and potential in tumultuous times.



Even though Nobody knows exactly when the next halving will occur, cryptocurrency experts predict that the next Bitcoin halving is likely to occur in May of 2024, approximately four years after the last event.



<h2 id="h2-2" class="wp-block-heading">How does Bitcoin halving work?</h2>



Bitcoin mining is the process of using computers to discover and confirm bitcoin transactions on the bitcoin blockchain, which is a distributed public ledger, then add them to the previous ledgers and releasing new bitcoins into circulation. All bitcoin miners compete with each other to solve a difficult mathematical puzzle in order to find the next bitcoin block, have it confirmed by bitcoin network, then receive money as a reward for their efforts.



With a decentralized network of validators verifying Bitcoin transactions, miners are rewarded with 6.25 BTC when they complete the computationally intensive task of solving complex mathematical equations to add new blocks to the blockchain – an integral part in ensuring that all exchanges remain secure and verifiable. With a market value of over $148,000 for 6.25 Bitcoin (BTC), miners have no shortage of incentive to ensure that the blockchain operates as it should: smoothly and securely processing transactions. Miners are given a reward every 10 minutes for their hard work when they add blocks of transactions to the Bitcoin network. However, this bounty is halved approximately every four years after 210,000 blocks have been created.



<h2 id="h2-3" class="wp-block-heading">How to trade Bitcoin halving?</h2>



Bitcoin’s halving event offers traders a huge opportunity. Jump onboard the crypto phenomena and speculate on bitcoin’s future price using&nbsp;<a href="https://www.xt.com/en/futures">XT Futures</a>, or purchase the coins directly through&nbsp;<a href="https://www.xt.com/en">XT Crypto Exchange</a>.&nbsp;



For Bitcoin spot trading:&nbsp;<a rel="noreferrer noopener" target="_blank" href="https://www.xt.com/en/trade/btc_usdt">BTC/USDT</a>



For Bitcoin futures trading:&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">BTC/USDT Perpetual</a>,&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">BTC/USD Perpetual</a>



Discover more about&nbsp;<a href="https://xtsupport.zendesk.com/hc/en-us/articles/13414665747865-Bitcoin-Futures-Trading-A-Comprehensive-Guide">bitcoin futures trading</a>



<h2 id="h2-4" class="wp-block-heading">Why Bitcoin halving occurs?</h2>



Bitcoin halves due to the design of its software, which was created by a mysterious person or group using the assumed pseudonym ‘Satoshi Nakamoto’. Satoshi Nakamoto’s mysterious motivations for the halving system remain shrouded in secrecy. However, it is widely suggested that this clever mechanism was created to strategically disperse coins early on as an incentive for miners to join and support Bitcoin’s blockchain network. According to this theory, block rewards were strategically halved at regular intervals in order to safeguard the increasing value of each reward as more miners joined the network.



With only a limited supply of 21 million, the scarcity and value of bitcoin is secured through its halving process. As blocks are mined, each block brings with it fewer bitcoins than before until that ultimate limit of 21 million has been reached – when no new coins can be issued. At this point existing holders will benefit from an increase in demand as supplies become increasingly scarce. Bitcoin halving is an integral part of the bitcoin system. It is programmed into bitcoin’s protocol which, in turn, triggers a reduction in miner rewards roughly once every four years. This process reduces bitcoin supply by cutting the miner rewards that are issued for solving complex cryptographic puzzles associated with bitcoin mining.



<h2 id="h2-5" class="wp-block-heading">What happens to Bitcoin prices during halving?</h2>



Looking into the past, bitcoin halving appears to have a substantial impact on its value in the market. It is important to remember however that this effect can be outweighed by other influencing elements at play.



First halving: In 2012, the first halving of Bitcoin saw its price rise from an underwhelming $11 to a much more promising $12. Taking only 12 months for it to soar up towards the thousands, with prices reaching around an astonishing $1,100 in that same timespan.



Second halving: In 2016, the bitcoin network reached a major milestone: 420,000 blocks completed. This was also when the second halving of Bitcoin occurred – an event that preceded its dramatic price increase. Following several months in which it fluctuated between $500-$1,000 per coin, by December 2017 it had skyrocketed to nearly $20,000.



Third halving: In May 2020, the third halving of Bitcoin occurred and it marked another powerful surge in its value. Within a few months, this cryptocurrency rose from an estimate $9000 to a staggering $30 000 by year-end. On April 14, 2021, a bitcoin’s price soared to $63,233 (an astonishing 617% increase from its pre-halving price). A month later, on May 11, 2021, a bitcoin’s price was $49,504, representing a 461% increase that seems more consistent with the behavior of the 2016 halving.



<figure class="wp-block-image"><img alt="bitcoin-halving-price.jpg" src="https://xtsupport.zendesk.com/hc/article_attachments/13898085173145" decoding="async"></figure>



<h2 id="h2-6" class="wp-block-heading">What are implications of the Bitcoin halving event?</h2>



It has implications on bitcoin miners as they now have to compete harder to earn payouts due to the smaller rewards, potentially resulting in fewer miners. The eventual long-term implications are unclear, however there may be less energy consumption required to support bitcoin mining with fewer miners in the market. Supporters of bitcoin also tout that rarity created by bitcoin halving will drive up its price due to greater demand while detractors view it delaying bitcoin’s mainstream adoption because it requires a much higher investment than before.



Halving is also a big deal for cryptocurrency investors. It’s when the amount of coins issued to miners per block gets cut in half, reducing supply and driving up prices due to increased demand – typically good news for crypto traders. Even though each halving has its own unique conditions that influence price changes, trading activities are often boosted leading into it as people anticipate what will happen next. All in all, it can certainly have an impact on investors and bitcoin miners alike as both parties will adjust according to the changing dynamics of bitcoin’s scarcity and supply.



<h3 id="h_01JD8VMEQ65HXYQ0G7PK8V3VHZ" class="wp-block-heading">About XT.COM</h3>



Founded in 2018,&nbsp;<a href="http://www.xt.com/en">XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;supports a rich variety of trading, such as&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt">spot trading</a>,&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">margin trading</a>, and&nbsp;<a href="https://www.xt.com/en/futures">futures trading</a>&nbsp;together with an aggregated&nbsp;<a href="https://www.xt.com/en/nft">NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.

How Bitcoin Halving Influences Supply, Demand, and Price Trends

Bitcoin Halving

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<h3 class="wp-block-heading">Table of Contents</h3>



<a href="#h2-1">What is XT.COM Futures Grid trading?</a>



<a href="#h2-2">Futures Grid Bot offers three (3) ways</a>



<a href="#h2-3">Options and parameters</a>



<a href="#h2-4">XT.COM futures grid profit and loss calculation</a>



<h2 id="h2-1" class="wp-block-heading">1.What is XT.COM Futures Grid trading?</h2>



<a href="https://www.xt.com/en/strategy/futures/grid/btc_usdt">Futures grid trading</a>&nbsp;is an automated strategy that uses market fluctuations to trade futures contracts with preset intervals within a specific price range to make a profit. The strategy will continuously buy low and sell high for each grid defined, and profit from the volatile market.



The futures grid currently supports all&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usdt">USDT-margined futures</a>&nbsp;and will support&nbsp;<a href="https://www.xt.com/en/futures/trade/btc_usd">crypto-margined futures</a>&nbsp;in the future.



<h2 id="h2-2" class="wp-block-heading">2.Futures Grid Bot offers three (3) ways</h2>



<h4 class="wp-block-heading">2.1 Long mode is suitable for volatile market conditions where prices are rising. Long grids will enter long positions upon creation at market price, and take profits by closing long positions when the price rises.</h4>



Example:



Suppose Trader creates a Futures Grid Bot strategy on XT.COM based on the following parameters:



Futures trading pair：BTCUSDT



Market price：35,000 USDT



Upper price：45,000 USDT



Lower price：20,000 USDT



Number of grids: 5



Grid mode：Geometric



Leverage：5x



Intervals：17.61% ≈( (45,000/20,000)(1/5)&nbsp; – 1)*100%



Note:



Geometric: Each grid has an equal price difference ratio. For example, if the interval is 17.61%. The price of the next order will be 17.61% higher than the previous price.



The system will calculate the price of each grid and place your orders with 2x leverage. When the Future Grid Bot strategy is successfully activated, the positions will be placed as follows.&nbsp;



20,000 Buy Limit (Open Long)



23522 Buy Limit (Open Long)



27664 Buy Limit (Open Long)



Market price: 35000（No order will be placed）



37075 Sell Limit (Close Long)



45000 Sell Limit (Close Long)



Your Grid Bot will only operate within the upper and lower price bounds that have been configured. When the BTC price rises above 45,000 USDT or falls below 20,000 USDT, no new order will be placed by the Grid Bot until the BTC price returns to the price range.



<h4 class="wp-block-heading">2.2 Short mode is suitable for volatile market conditions where prices are falling. Short grids will enter short positions upon creation at market price and take profits by closing short positions when the price falls.</h4>



Example:



Suppose Trader creates a Futures Grid Bot strategy on XT.COM based on the following parameters:



Derivatives trading pair：BTCUSDT



Market price：30,000 USDT



Upper price：45,000 USDT



Lower price：20,000 USDT



Number of grids：5



Grid mode：Arithmetic



Leverage：5x



Intervals：5,000 = (45,000 − 20,000)/5



Note:



Arithmetic: Each grid has the same price difference. For example, if the interval is 5,000 USDT. The price of the next order will be 5,000 USDT higher than the previous price.



The system will calculate the price of each grid and place your orders with 5x leverage. When the Future Grid Bot strategy is successfully activated, the positions will be placed as follows:



45000 Sell Limit (Open Short)



40000 Sell Limit (Open Short)



35000 Sell Limit (Open Short)



Market price: 30,000（No order will be placed）



25000 Buy Limit (Close Short)



20000 Buy Limit (Close Short)



Your Grid Bot will only operate within the upper and lower price bounds that have been configured. When the BTC price rises above 45,000 USDT or falls below 20,000 USDT, no new order will be placed by the Grid Bot until the BTC price returns to the price range.



<h4 class="wp-block-heading">2.3 For neutral mode, the bot will short the futures contracts when price is above the base price and long the futures contracts when the price is below the base price. The bot will place long orders below the base price and short orders above the base price. When the market price hits the preset price, the long/short position will be opened, depending on which order direction is filled.</h4>



Example:



Futures：BTC USDT perpetual



Price：20000-45000



Number of grids：5



Grid mode: Arithmetic



Leverage：5



Intervals：5000 = (45000 − 20000)/5



Note:



For Arithmetic, each grid has the same price difference. For example, if the interval is 5000



USDT, then the grids are: 20000, 25000, 30000, 35000, 40000, 45000。Market price: 35000.



45000 Open Short



40000 Open Short



35000 No order will be placed



30000 Open Long



25000 Open Long



20000 Open Long



Your Grid bot will only operate within the upper and lower price bounds that have been configured. When the BTC price rises above 45,000 USDT or falls below 20,000 USDT, no new order will be placed by the Grid Bot until the BTC price returns to the price range.



Users can select the corresponding futures grid strategy based on its insight on the market outlook.



<h3 id="h2-3" class="wp-block-heading">3.Options and parameters</h3>



<h4 class="wp-block-heading">3.1 Setup Options</h4>



AI strategy: Use the parameters recommended by backtested strategy (These parameters are based on a 7 days’, 30 days’, and 180 days’ backtest of this pair).



Set myself: Set parameters based on your own analysis of the market.



<h4 class="wp-block-heading">3.2 Grid Trading Parameters</h4>



Grid – Arithmetic grid:&nbsp;It keeps the same common difference between each grid. (For example: 1, 2, 3, 4.)



Grid – Geometric grid:&nbsp;It keeps the same common ratio between each grid. (For example: 1, 2, 4, 8.)



Lower price:&nbsp;The bot will stop placing orders when the market price is lower than the lowest price.



Upper price:&nbsp;The bot will stop placing orders when the market price is higher than the highest price.



Grid quantity:&nbsp;The number of grids represents the number of pending orders divided in the price range. For example, if the price range is 10000-40000, the mode is arithmetic, and the number of grids is 3, it is divided into three grids: 10000-20000, 20000-30000, and 30000-40000.



Initial Margin:&nbsp;After entering the lower price or upper price, calculate the minimum initial margin according to the formula. The minimum initial margin ≤ filled initial margin ≤ futures account balance.



Grid trigger:&nbsp;The grid orders will be triggered when the last price or mark price rises above or falls below the trigger price you enter.



Stop trigger:&nbsp;The Stop_upper_limit needs to be higher than the upper price limit, latest price, and trigger price. When the market price reaches the Stop_upper_limit, the grid will stop its operation.



The Stop_lower_limit should be lower than the lower price limit, latest price, and trigger price. When the latest market price reaches the Stop_lower_limit, the grid will stop its operation.



<h3 id="h2-4" class="wp-block-heading">4.XT.COM futures grid profit and loss calculation</h3>



Grid profit



Grid profit refers to the total income generated by the automatic trading of the current futures grid strategy.



Grid profit = Price Interval × Trading Volume Per Grid (Long) × Grid Transaction Times − Service Fee



Grid annualized rate of return



Annualized Rate of Return = Total Profit/Initial Margin/Days of Operation*365*100%



Assuming Trader’s grid strategy runs for 24 hours:



Annualized Rate of Return = 500/10,000/1 × 365 × 100%= 18.25%



Note:



If the operation time of the futures grid bot is less than one day, it is counted as one day.



If the user manually closes the position or cancels the order, the grid strategy will be terminated.



<h3 class="wp-block-heading">About&nbsp;XT.COM</h3>



Founded in 2018,&nbsp;<a href="http://www.xt.com/en">XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;supports a rich variety of trading, such as&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt">spot trading</a>,&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">margin trading</a>, and&nbsp;<a href="https://www.xt.com/en/futures">futures trading</a>&nbsp;together with an aggregated&nbsp;<a href="https://www.xt.com/en/nft">NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.

XT.COM Contract Grid Strategy Overview

Contract Grid Strategy Overview

<figure class="wp-block-image size-large"><img sizes="auto, (max-width: 1000px) 100vw, 1000px" srcset="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=1024%2C597&amp;ssl=1 1024w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=300%2C175&amp;ssl=1 300w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=768%2C448&amp;ssl=1 768w, https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?w=1200&amp;ssl=1 1200w" class="wp-image-2142" alt="xt-futures-cover" src="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?resize=1024%2C597&amp;ssl=1" data-large-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=1024%2C597&amp;ssl=1" data-medium-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=300%2C175&amp;ssl=1" data-image-caption="" data-image-description="" data-image-title="xt-futures-cover" data-image-meta="{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}" data-comments-opened="1" data-orig-size="1200,700" data-orig-file="https://i0.wp.com/xtexchangeblog.wpcomstaging.com/wp-content/uploads/2024/12/xt-futures-cover.jpeg?fit=1200%2C700&amp;ssl=1" data-permalink="https://xtexchangeblog.wpcomstaging.com/en/the-reverse-position-feature-in-futures/xt-futures-cover-4/" data-attachment-id="2142" height="597" width="1024" decoding="async" loading="lazy" data-recalc-dims="1"></figure>



<h3 class="wp-block-heading">Content of this article:</h3>



<a href="#h2-1">What is futures contract</a>



<a href="#h2-2">Futures trading fee and settlement fee</a>



<a href="#h2-3">PNL calculations</a>



<a href="#h2-4">Mark price calculations</a>



<a href="#h2-5">Risk allocation mechanism</a>



<h2 id="h2-1" class="wp-block-heading">1. What is futures contract</h2>



XT Futures Contracts refer to the derivative of digital assets settled with USDT, BTC, and ETH. The futures contract has no funding fee, and shares the USDT-M/Coin-M margin account with the perpetual contract in the cross-margin mode.



It’s a contract to buy or sell a particular underlying asset at a predetermined price at a specified time in the future. It’s different from the perpetual contract in that the futures contract has a delivery date (that the contract will expire). When the futures contract expires, both buyer and seller are obliged to perform the contract and complete the contract no matter what the actual price of the underlying assets is.



If the settlement price is higher than the opening price, the buyer makes a profit; if the settlement price is lower than the opening price, the seller makes a profit.



Instruction of the code of futures contracts:



Take the BTC_USDT0106 this week as an example:



BTC refers to the basic currency of the futures contract; USDT refers to the quote currency of the futures contract; 0106 refers to the expiring date, that is the delivery date; this week refers to a duration of one week, that the contract will expire this week.



It refers to the process for settling the unrealized liquidation or a holding contract on the delivery date.&nbsp;



XT uses the weighted average index 1 hour before settlement as the settlement price, to prevent the risk of instant market manipulations. For more information, please refer to the contract details.



Trading rules:



Instead of a daily basis, XT futures contract will only be settled on the expiring date. No other contracts will be suspended during settlement.&nbsp;



Positions can be closed but not be opened in the last 10 minutes before the delivery.



The settlement time for the weekly contract is 8:00 (UTC), every Friday. The settlement time for the monthly contract is 08:00 (UTC) on the last Friday of the month, and the settlement time for the quarterly contract is 8:00 UTC, the last Friday of that quarter.



Contract trading may be interrupted. The duration of interruption depends on the time taken by the system to conduct the settlement and delivery. The time for interruption and recovery is different among contract varieties, that is, if BTC is still in settlement while ETH is finished, then the recovery of ETH trading is ahead of BTC.



After the delivery, the next week, next month, and next quarter futures inherit the K-line and futures name of the current week, current month, and current quarter for trading.



XT applies the mark price as the basis of liquidation and adopts the ADL and Funding Insurance mechanism like the perpetual contracts so that there will be no loss-sharing.



<h2 id="h2-2" class="wp-block-heading">2. Futures trading fee and settlement fee</h2>



Futures trading fee rate:



1)&nbsp;Maker: 0.04%, supports VIP rate system.



If the order placed by the maker is not taken immediately, it will be displayed in “the depth of the market”, which will increase the depth of the market.



2)&nbsp;Taker: Please refer to the table of tiered fee rates.



Takers trade initiatively with the placed orders and reduce the existing maker orders in the market, thus reducing the depth of the market. If there are no sufficient points, the fee will be charged according to the table of tiered fee rates.



Settlement fee is charged the same as taker&nbsp;<a href="https://www.binance.com/en/fee/deliveryFee">fee</a>&nbsp;for all positions settled on the delivery date.



Note: Since there is a delivery date for a futures contract, no funding fee will be charged.



The trading fee is calculated as:



Trading Fee = Position Value * Funding Rate



<h2 id="h2-3" class="wp-block-heading">3. PNL calculations</h2>



The futures contract provided by XT.COM currently supports only contracts with USDT, BTC and ETH settlements.



Like the perpetual contract, the PNL can be realised by operating bullish and bearish according to the market quotation. But there’s a settlement date for the futures contract that cannot be long-held.



The futures contract information can be viewed in the futures information:



The PNL for a futures contract is calculated using the formula as a perpetual contract.



<ul class="wp-block-list">
<li>Long：Amount (CNT) * Face Value (CNT) * (1 /&nbsp;Avg. Open Price&nbsp;– 1 /&nbsp;Mark Price)</li>



<li>Short：Amount (CNT) * Face Value (CNT) * (1 /&nbsp;Mark Price&nbsp;– 1 /&nbsp;Avg. Open Price)</li>
</ul>



The PNL for a futures contract is calculated using the formula as an inverse perpetual contract.



<ul class="wp-block-list">
<li>Long：Amount (CNT) * Face Value (CNT) * (1 / Avg. Open Price – 1 / Mark Price)</li>



<li>Short：Amount (CNT) * Face Value (CNT) * (1 /&nbsp;Mark Price&nbsp;– 1 /&nbsp;Avg. Open Price)</li>
</ul>



<h2 id="h2-4" class="wp-block-heading">4. Mark price calculations</h2>



Traditionally, the price of a quarterly futures contract will converge with its corresponding spot price as the contract expires. As the contract runs down towards expiry, the Mark price will closely reflect spot prices, and the moving average basis component will no longer be part of the Mark price calculation. This means that the Mark price of a futures contract will be computed differently as it reaches the time of expiration.



Before delivery date:



USDT-M futures:



Mark Price = Index Price+ 5-minute Basis Moving Average



5-minute Basis Moving Average = Σ((Bid 1 + Ask 1) / 2 – Index Price), measures every minute in a 5-minute interval



Coin-M futures:



Mark Price = Index Price + 30-minute Basis Moving Average



30-minute Basis Moving Average = Σ((Bid 1 + Ask 1) / 2 – Index Price)，measures every minute in a 30-minute interval



On the delivery date:



1) The time to delivery is greater than 1 hour



USDT-M futures:



Mark Price = Index Price + 5-minute Basis Moving Average



5-minute Basis Moving Average = Σ((Bid 1 + Ask 1) / 2 – Index Price)，measures every minute in a 5-minute interval



Coin-M futures:



Mark Price = Index Price + 30-minute Basis Moving Average



30-minute Basis Moving Average = Σ((Bid 1 + Ask 1) / 2 – Index Price), measures every minute in a 30-minute interval



Please note:



<ul class="wp-block-list">
<li>During the system upgrade or the system down that pending all trading activities, the Mark price of a Quarterly Futures Contract whose time to delivery is greater than 1 hour is calculated as follows: Keep the Mark price formula but use the Bid1 and Ask1 at the system stop time to calculate Moving Average (5-minute Basis) until the system is back to normal.</li>
</ul>



2) Time to delivery is equal or less than 1 hour



Mark Price = Average Index Price



Average Index Price = (Index Price 1 + Index Price 2 + … + Index Price n) / n，measures every second in a 1-second interval



<h2 id="h2-5" class="wp-block-heading">5. Risk allocation mechanism</h2>



Futures contract adopt&nbsp;insurance funds&nbsp;and Auto Deleveraging to allocate and control risk.



Rules for insurance fund:



The insurance fund is used by XT.COM to resist the risk of massive liquidation, mainly composed of the fund provided by XT.COM and&nbsp;the liquidation surplus from the liquidation orders.



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Types of Futures Contracts</td><td>USDT-M Futures</td><td>Coin-M Futures</td></tr><tr><td>Rules for insurance fund</td><td>For USDT-margined futures, the insurance fund currency for all the contracts is USDT, but the pools are independent of each other.</td><td>For Coin-margined futures, contracts with different underlyings are provided with the insurance funds in the corresponding currencies.</td></tr><tr><td>Example</td><td>ETHUSDT futures (weekly, bi-weekly, monthly, bi-monthly, quarterly, bi-quarterly) has an insurance fund with currency USDT, and so does BTCUSDT futures. But their insurance fund pools are independent of each other and cannot be calculated together.</td><td>BTCUSD futures (weekly, bi-weekly, monthly, bi-monthly, quarterly, bi-quarterly) has an insurance fund with currency BTC, and all the BTCUSD futures contracts with different expiry dates share the same fund.</td></tr></tbody></table></figure>



Auto-Deleveraging (ADL) rules:



Autoーdeleveraging, abbreviated as ADL, refers to a mechanism for liquidation of counterparty positions to control the platform’s overall risk when extreme market conditions or force majeure lead to insufficient of the insurance fund. After ADL is triggered, the platform will no longer use the method of placing orders on the market and waiting for a suitable price to liquidate or partially liquidate user’s positions, but directly find the counterparty account with the highest ranking and trade with the mark price at the time. After the transaction is completed, the counterparty position will be closed. The profits from the position will be added to the account balance. When the mechanism is adopted, the clawback will no longer be triggered.



<h3 id="h_01J67X1Q29QSTKEZNG1S4DSF2S" class="wp-block-heading">About XT.COM</h3>



Founded in 2018,&nbsp;<a href="http://www.xt.com/en">XT.COM</a>&nbsp;now serves nearly 8 million registered users, over 1,000,000+ monthly active users and 40+ million users in the ecosystem. Our comprehensive trading platform supports 800+ high-quality tokens and 1000+ trading pairs. XT.COM&nbsp;<a href="https://www.xt.com/en">crypto exchange</a>&nbsp;supports a rich variety of trading, such as&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt">spot trading</a>,&nbsp;<a href="https://www.xt.com/en/trade/btc_usdt?type=margin">margin trading</a>, and&nbsp;<a href="https://www.xt.com/en/futures">futures trading</a>&nbsp;together with an aggregated&nbsp;<a href="https://www.xt.com/en/nft">NFT marketplace</a>. Our platform strives to cater to our large user base by providing a secure, trusted and intuitive trading experience.

Futures Contract Instruction

The system has automatically distributed {amount} reward to your spot account, and you can check it by logging in to your account. Reward validity period: {effectiveDays} days, after completing the spot or contract transaction, XT will be released automatically after T+1 days.

The reward has arrived

The {amount} reward issued to you by the system (enjoyed benefits: {unlockAmount} ) is about to expire, please log in to your account as soon as possible to view and complete the transaction to obtain benefits. Reward validity period: {effectiveDays} days, after completing the spot or contract transaction, XT will be released automatically after T+1 days.

reward expiring soon

The system has automatically distributed {amount} reward to your spot account, and you can check it by logging in to your account.

The red envelope has arrived

The red envelope has been returned

You have received a coupon!

You have an experience coupon activated!

One of your coupons is about to expire!

The {symbol} position in your futures account will generate an expected funding fee {amount} USDT, and the expected rate is {rate} .

Expected Funding Rate

The {symbol} prediction contract you hold has been delivered at {price} USDT price at {time} (UTC). You can view the record in the contract funds flow.

All positions are delivered

Hello! The {symbol} prediction contract you hold has been extended, and the latest delivery time is {deliveryTime} (UTC).

The position has been rolled over

Hello! The {symbol} prediction contract you hold has stopped trading at {time} (UTC).
 The delivery time is {deliveryTime} (UTC).

The position has been stopped from trading

Your isolated position {symbol} contract has been successfully called for margin,
 The current margin rate is {rate}

successful margin call

Your {symbol} contract's isolated position automatic margin call failed,
 Please replenish your margin or reduce your position immediately.

Automatic margin call failed

Your {symbol} prediction contract is close to being liquidated. The current mark price is: {markPrice} , and the liquidation price is: {liquidationPrice} . Please control the risk reasonably.

Position close to liquidation

Your {symbol} prediction contract has been partially liquidated at {time} (UTC). The liquidation price is: {liquidationPrice} , quantity: {positionSize} pieces, please control the risk reasonably

partial forced liquidation

Your position {symbol} prediction contract has been liquidated at {time} (UTC), the liquidation price is: {liquidationPrice} , quantity: {positionSize} pieces

forced liquidation

Your position {symbol} prediction contract has been automatically reduced at {time} , the price is: {price} , the quantity: {positionSize} pieces

Automatic deleveraging

The {coin} margin ratio of the U-standard contract account has reached {rate} , please replenish the margin immediately or reduce the position.

Full position close to forced liquidation

All {coin} positions in the U-margin contract account have been liquidated, and the mark price of {symbols} is {prices} .

Notice of forced liquidation of all positions

Thank you for submitting your documents and applying to be a trader for XT.COM's documentary trading plan. Unfortunately, your submission
 There may be errors in the documents, so the application was not approved.
 No problem, you are welcome to resubmit your documents and we will review your application again:
 1. Screenshots of transaction records in the past month, including derivatives contract win rate (%)
 2. Personal social media profiles, number of followers and information about the cryptocurrency community
 3. Screenshot of personal trading income and performance in the past month
 [Start here] Link to the home page interface

Failed to apply for single member

Congratulations, your application for the XT.COM documentary trading plan has been approved.
 [Initiate order] Link to my order interface

The single member application is successful

Congratulations, your rank has been upgraded! You can enjoy more rights and interests of single-carrying members.
 [Details of rights and interests of a single member] My link to the single interface

Upgrade with a single member

Unfortunately, your order-carrying member level has been downgraded, and your order-carrying member rights have been adjusted.
 [Details of rights and interests of a single member] My link to the single interface

Downgrade with a single member

Sorry, due to excessive market fluctuations, you failed to open/close a position following the {symbol} of the order leader " {leader} ". You can:
 [Manual position closing] Link to my documentary interface

Failed to copy the order

Sorry, you have been unfollowed by the order leader {leader} , please re-select the order leader to carry out the follow-up transaction

Unfollow manually

Sorry, the order leader {leader} you followed was unfollowed by the system, please re-select the order leader to carry out the copy transaction

Automatically unfollow

Congratulations on obtaining the qualification of "XT.COM Copy Trader Plan"!
 Since your transaction volume and rate of return in the XT contract have met the requirements for becoming an order taker, you are hereby invited to become an XT contract order taker.
 This invitation is a targeted invitation, and only users who have received the email can participate.
 "Click to apply for the order carrier of the XT copy trading plan!" link to the home page of the copy

Invite to be a taker

Contract follow-up reminder

The {symbol} perpetual contract short position is successfully opened, and the average opening price is {openPrice} . Bring a single member {leader}

Copy order - open position successfully

{symbol} perpetual contract is closed successfully, with an average closing price of {closePrice} and a profit of {realizedProfit} . Bring a single member {leader}

Copy order - close position successfully

The {symbol} perpetual contract account has insufficient balance, and failed to open a position with the order leader {leader}

Copy order - failed to open a position

{symbol} perpetual contract exceeded the maximum openable amount of the current leverage multiple, and failed to open a position with the order leader {leader}

{symbol} perpetual contract exceeded the upper limit of the position value of the order leader, and failed to follow the order leader {leader} to open a position

{symbol} perpetual contract exceeded the upper limit of the position value of the follower, and failed to open a position with the order leader {leader}

The {symbol} delivery contract you hold has been delivered at {price}{coin} at {time} (UTC). You can check the record in the contract funds flow.

Your {symbol} delivery contract has been extended, and the latest delivery time is {deliveryTime} (UTC).

The {symbol} delivery contract you hold will stop trading at {time} (UTC), and the delivery time will be {deliveryTime} (UTC).

Positions are about to stop trading

Your {symbol} delivery contract is close to being liquidated. The current mark price is: {markPrice} and the liquidation price is: {liquidationPrice} . Please control the risk reasonably.

Your {symbol} delivery contract has been partially liquidated at {time} , the liquidation price is: {liquidationPrice} , quantity: {positionSize} contracts, please control the risk reasonably.

Your {symbol} delivery contract has been liquidated at {time} , the liquidation price is: {liquidationPrice} , quantity: {positionSize} contracts.

Your position {symbol} delivery contract has been automatically reduced at {time} , the price is: {price} , the quantity: {positionSize} contracts.

Sorry, due to excessive market fluctuations, you failed to open a position following the {symbol} of the order leader {leader} .

Sorry, due to excessive market fluctuations, you failed to open a position following {symbol} of the order leader {leader} . 

 My copy (click to enter my copy page)

Copy opening failed

Sorry, due to excessive market fluctuations, you failed to close the position following the {symbol} of the order leader {leader} . If necessary, please close the position manually.

Sorry, due to excessive market fluctuations, you failed to close the position following the {symbol} of the order leader {leader} . If necessary, please close the position manually. 

 My copy (click to enter my copy page)

Failed to close the position with the copy

Your order-carrier level has been updated, the latest level {newLevel} (maximum follower number {maxFollowerSize} , profit sharing ratio {profitRate} )

Dear XT.COM users: 

 Your order driver level has been updated (the latest level {newLevel} ), and the specific evaluation data is as follows ( {startTime} - {endTime} ):
 Average daily contract total equity (USDT) in the past 30 days: {equity} (satisfies {equityLevel} )
 or
 The total transaction amount (USDT) with orders in the past 30 days: {tradeAmount} (satisfies {tradeAmountLevel} )
 and
 Contract rate of return in the last 30 days: {incomeRate} (satisfies {incomeRateLevel} )
 Final evaluation level = {newLevel} (maximum number of followers {maxFollowerSize} , profit sharing ratio {profitRate} ) 

 Next level {nextLevel} (maximum follower number {nextMaxFollowerSize} , profit sharing ratio {nextProfitRate} ):
 Average daily contract total equity (USDT) in the past 30 days ≥ {equityLimit}
 or
 The total transaction amount (USDT) with orders in the past 30 days ≥ {tradeAmountLimit}
 and
 The contract rate of return in the past 30 days ≥ {incomeRateLimit} 


 Thank you for your support and trust in XT.COM. 

 XT.COM team

Documentation-level update (upgrade)

With single player level update (upgrade)

Copy-level update (downgrade)

With single-member level update (downgrade)

Dear XT.COM users: 

 Your order driver level has been updated (the latest level {newLevel} ), and the specific evaluation data is as follows ( {startTime} - {endTime} ):
 Average daily contract total equity (USDT) in the past 30 days: {equity} (satisfies {equityLevel} )
 or
 The total transaction amount (USDT) with orders in the past 30 days: {tradeAmount} (satisfies {tradeAmountLevel} )
 and
 Contract rate of return in the last 30 days: {incomeRate} (satisfies {incomeRateLevel} )
 Final evaluation level = {newLevel} (maximum number of followers {maxFollowerSize} , profit sharing ratio {profitRate} ) 

 The highest level {nextLevel} (maximum follower number {nextMaxFollowerSize} , profit sharing ratio {nextProfitRate} ):
 Average daily contract total equity (USDT) in the past 30 days ≥ {equityLimit}
 or
 The total transaction amount (USDT) with orders in the past 30 days ≥ {tradeAmountLimit}
 and
 The contract rate of return in the past 30 days ≥ {incomeRateLimit} 


 Thank you for your support and trust in XT.COM. 

 XT.COM Team

The stop loss order has been triggered

The experience gold position has been closed

Bonus position has been closed

Experience gold commission failed

Futures bonus order failed

The lead trader you are following has a new futures trading

Futures copy trading-Unfollow

BTCUSDT contract price breaks through {priceMilestone}

BTCUSDT contract breaks through {priceMilestone}

BTCUSDT contract price fell below {priceMilestone}

BTCUSDT contract falls below {priceMilestone}

BTCUSDT contract price increased {changeRate} in the past 24 hours

BTCUSDT contract increased by {changeRate} %

BTCUSDT contract price decreased by {changeRate} within 24 hours

BTCUSDT contract down by {changeRate} %

Create a passkey

Delete pass key

Partner: {name} (UID: {uid} ) is inviting you to become his direct customer on the XT partner management platform, waiting for your confirmation; View details > >

You have a direct guest invitation notice, please click to open the email to check

Partner: {name} (UID: {uid} ) is inviting you to become his partner in the XT partner management platform, waiting for your confirmation; View details > >

You have a partner invitation notice, please click to open the email to check

Congratulations, you have successfully passed the audit and officially become an XT partner! Start your XT partner journey now and earn rebates by inviting transactions! Enter XT partner background > >

XT partner review progress update notification

Your XT partner application review progress has been updated, come and check the progress! > now >

Dear partner, your user UID: {userId} , because {riskDate} violates Article 2 of the risk control rules: the number of orders with a daily holding time of less than 3 minutes accounts for more than 20%, and you will be deducted proportionally The commission {commissionAmount} USDT is the standard rebate.

Risk control notice

Dear partner, your user UID: {userId} , risk control rule 2 is triggered due to {riskDate} : no commission for orders with a daily position of less than 1 minute, and the commission amount has been deducted proportionally to {commissionAmount} usdt, Please note.

The application for order leader was successful

Application for an expert trader has failed

The level as a spot order leader has leveled up

The level of the spot order leader has been downgraded

Spot order-vacancy reminder

Spot order- bought successfully

Spot order-successfully sold

Spot order-purchase failed

Spot order-cancel this following

Spot copy traders - Remove Follows

The expert trader you follow has a new spot transaction

Your contract strategy {ID} has successfully started running, you can check the running status of the strategy in real time on the XT platform

contract grid

Your contract strategy {ID} has been terminated because the market price has reached the strategy stop price

Your contract strategy {ID} has been terminated due to market price fluctuations and the position has been liquidated

Your contract strategy {ID} has been terminated due to insufficient account balance

Your contract strategy {ID} has been terminated, you can enter the XT platform to view the strategy details.

Avatar review failed

Your advanced real-name verification email verification code is {verifyCode}

Your verification code is {verifyCode} , which is only used for primary real-name authentication.

Primary real-name authentication

The email verification code of your Primary Real-Name Verification is {verifyCode}

Your verification code is {verifyCode} , which is only used for advanced real-name authentication.

Advanced real-name authentication

Your email verification code for create API is {verifyCode}

Your verification code is {verifyCode} , which is only used to create API.

Create an API

The email verification code of your modification API is {verifyCode}

Your verification code is {verifyCode} , which is only used to modify the API.

Modify the API

Reset sub-account login password

reset subaccount google authenticator

Bind sub-account Google Authenticator

Unbind sub-account Google Authenticator

Create a digital red envelope

Receive digital red packets

Withdrawal request has been withdrawn

Recharge is being processed

Enable quick withdrawal

Add a whitelist address

Your {{amount}} {{coin}} trial fund will expire soon, and is valid until {{time}}!

Trial fund expiration notice

Congratulations, {{amount}} {{coin}} trial fund has been distributed to your futures account, and is valid until {{time}} (UTC)

Trial fund distribution notice

Your {{amount}} {{coin}}  trial fund has been recalled, thank you for your participation!

Trial fund recall notice

Sorry,  the trader {{leader}} you follow is unfollowed by the system , please select other trader to trade

Unfollow automatically

Dear XT.COM user: 

We regret to inform you that due to excessive market volatility, you failed to open/close a position with {{symbol}} of trader {{leader}} , you can: 

 [Manually close] in my trading interface link 

 XT.COM Team

Trading failed

Dear XT.COM user: 

Congratulations, you are qualified for "Trader of XT.COM Copy Trading Program"! 

Since your transaction volume and income in XT futures have reached the threshold of becoming a trader, you are specially invited to become an XT futures trader. 

This invitation is targeted, and only users who received the email can participate. 

 "Click on the trader who apply for XT trading program!" in trading home page link. 

Thank you for your continued support! If you have any questions, please contact xt.com customer service team via XXX. We will serve you wholeheartedly.


 XT.COM Team

Invite to be a trader

Sorry, you were unfollowed by trader {{leader}} , please select other trader to trade

Dear XT.COM user: 

 Congratulations, the trader you follow is available now. 

 [View Details] in My Trade Detail Interface 

 XT.COM Team

Vacancy notice

Dear XT.COM user: 

Thank you for submitting your documents to apply to become a trader in XT.COM Copy Trading Program. Unfortunately, the documents you submitted may be incorrect, and the application failed to pass review. 

Don't worry, you are welcomed to submit your documents again and we will review your application: 

 1. Screenshots of trading records over the past one (1) month, including derivatives futures win rate (%) 

 2. Personal social media profiles, the number of followers and relevant information on cryptocurrency community 

 3. Screenshot of personal trading income and business performance over the past one (1) month 

 [Start here] Trading homepage interface 

Thank you for your continued support! If you have any questions, please contact xt.com customer service team via XXX. We will serve you wholeheartedly

 XT.COM Team

Trader application failed

Dear XT.COM user: 

Congratulations, the trade master of XT.COM trading program you applied has been approved. 

 [Start to lead order] in my lead order interface link

Thank you for your continued support! If you have any questions, please contact xt.com customer service.

 XT.COM Team

Trader application successful

Dear XT.COM user: 

Sorry, your trader level is downgraded! Your trader rights are adjusted. 

 [Trader rights details] in my trade link interface 

 XT.COM Team

trader downgrade

Dear XT.COM user: 

Congratulations, your trader level is upgraded! You can enjoy more trader rights. 

 [Trader rights details] in my trade link interface 

 XT.COM Team

Trader upgrade

Your {amount}{coin} discount bonus is about to expire and is valid until {time} (UTC)

Discount fund expiration notice

Congratulations, {amount}{coin} futures discount bonus has been issued to your futures account and is valid until {time} (UTC)

Discount bonus recall notice

Your {amount}{coin} discount bonus has been recalled, thank you for your participation!

Deposit & Withdraw

Login without password or verification code

Keep your account safe

Available on all your devices

Passkey

Passkey (recommended)

Futures VIP application failed
Unfortunately, your futures VIP application has not been approved. Please submit again and upload the screenshots of trading volume over recent{{days}} days and VIP level in other platforms.

Futures VIP application approved
Congratulations, futures VIP application you submitted has been approved, please view at transaction page

Notice on User's Application of Professional Level

Futures VIP level adjustment
Your VIP level has been adjusted due to futures trading volume over {{days}} days fails to reach the threshold

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