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The Differences Between USDT-M and Coin-M Futures

2023.07.6 MEXC
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1. USDT-M Futures vs Coin-M Futures


USDT-M futures, also known as linear futures, are contracts denominated in stablecoins such as USDT and USDC. MEXC's USDT-M futures are both quoted and settled in USDT. The main advantage of USDT-M futures lies in the straightforward calculation of returns in fiat currency, which enhances the intuitive nature of profit assessments.

Coin-M futures, also known as inverse futures, are settled in their respective cryptocurrencies (e.g., BTC, ETH, and XRP), without requiring stablecoins as margin. Currently, MEXC offers BTC and ETH Coin-M futures. The main advantage of Coin-M futures is the optimization of capital utilization—allowing traders to engage in futures trading while maintaining holdings in cryptocurrencies.

Type
USDT-M Futures
Coin-M Futures
Common Name
Linear Futures
Inverse Futures
Settlement Unit
USDT
Multi-crypto Settlement (e.g., BTC and ETH)
Margin
USDT
Multi-crypto (e.g., BTC and ETH)
Holding Time
Unlimited
Unlimited
Leverage Type
Isolated Margin / Cross Margin
Isolated Margin / Cross Margin

2. How to Set Up USDT-M or Coin-M Futures


On MEXC, you can choose from hundreds of USDT-M futures and two types of Coin-M futures: BTC-margined and ETH-margined futures.

2.1 Web


On the MEXC website, you can choose USDT-M or Coin-M futures in two ways:

1) In the top navigation bar, click [Futures] and select either [USDT-M Perpetual Futures] or [Coin-M Perpetual Futures] to access the corresponding trading page.

2) If you are already on the futures trading page, click the [▼] button next to the trading pair and select either [USDT-M] or [COIN-M] from the dropdown menu.


2.2 App


Open the MEXC App, tap the [Futures] button at the bottom of the screen. Then, at the top of the futures trading page, you can select either [USDT-M] or [COIN-M].


3. How to Choose Between USDT-M and Coin-M Futures


3.1 Reasons to Choose Coin-M Futures


Holders of crypto assets can hedge and trade in the MEXC Coin-M futures market without converting their assets to USDT. In other words, users do not need to sell any crypto at a low price.

During a bull market, investors prefer to keep holding their crypto assets. Since Coin-M futures are settled in cryptocurrencies, any profits generated are directly converted into long-term crypto holdings. This is an excellent way for users to accumulate more crypto over time.

3.2 Reasons to Choose USDT-M Futures


If you primarily hold USDT and do not own other crypto assets, USDT-M futures might be more suitable for you. MEXC's USDT-M futures market offers hundreds of trading pairs with up to 200x leverage, providing numerous opportunities to earn profits.

Both USDT-M futures and Coin-M futures have their unique advantages. You can choose the one that best fits your needs and trade accordingly on MEXC's futures market.

Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, consultation, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for users' investment decisions.

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