What are the advantages and disadvantages of the currency standard and U standard? Introduction to the advantages and disadvantages of coin standard and U standard

Coin-standard and U-standard contracts: In-depth analysis of advantages and disadvantages and profit strategies

Most exchanges offer two contract products: currency standard and U standard. The currency standard contract is settled in the corresponding cryptocurrency (such as BTC, ETH, XRP), while the U standard contract is denominated in stablecoins such as USDT, USDC, and BUSD. Due to different pricing methods, both have their own advantages and disadvantages, and investors need to choose carefully. This article will explore the advantages and disadvantages of coin-prime and U-prime to help you formulate more effective investment strategies.

Coin standard and U standard: Comparison of advantages and disadvantages

Coin standard contract: is settled in cryptocurrency and directly participates in the price fluctuations of the benchmark token.

• Advantages: High returns in the bull market, no need to convert crypto assets into stablecoins, avoiding potential losses; some centralized exchanges provide position rebates.
• Disadvantages: Faced with the risk of price fluctuations of benchmark cryptocurrencies, the loss may be large; you need to hold benchmark tokens to restrict some investors from participating; the price calculation is complicated and unfriendly to novices.

U standard contract: settled in stablecoins (usually USDT), which is easier to understand and calculate.

• Advantages: Intuitive settlement, use stablecoins to open positions and settle, saving time and transaction costs; the value of stablecoins is relatively constant, reducing market volatility risks.
• Disadvantages: The potential risk of deaning the stablecoin; stablecoin returns are limited, and other tokens are missed.

What kind of contract is more profitable?

The profitability of currency and U-standard contracts depends on market conditions and investor strategies.

• Bull market: Coin standard contracts usually perform better because rising token prices will amplify returns.
• Bear market: U standard contracts are more stable, with relatively low risks, and are suitable for conservative investors.

The final choice depends on your risk tolerance, investment goals and market judgment. The currency standard is suitable for investors who are optimistic about the market and pursue high returns; the U standard is suitable for investors who have low risk preferences and pursue stable returns. No matter which contract you choose, you need to operate with caution and formulate a reasonable risk management strategy. Remember, any investment has risks and requires rational decision-making.

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