Latest PIVX Medium

Ethical Voting in DAOs: The Role of Masternode Owners in PIVX Governance

PIVX is a decentralized blockchain project that prioritizes financial privacy and security. It utilizes a unique combination of features, including proof-of-stake, masternodes, and zk-SNARKs, to enhance transaction speed, user anonymity, and transaction privacy.

Speaking of masternodes, PIVX operates a decentralized governance model that allows the community to shape the project’s future. As a decentralized open-source project, masternodes are one of the core pillars of the PIVX ecosystem. They bolster network security by validating blocks and transactions across a distributed network of nodes.

In this “Ethical Voting Series,” we will explore the role of masternode owners in PIVX governance.

What is a Masternode?

A masternode is a specialized type of node that performs added functions within a blockchain network. These extra functions vary from one blockchain to another but generally revolve around improved performance and security, as well as governance participation.

PIVX masternodes perform two broad functions — they secure the network by providing additional nodes to validate blocks and transactions and they facilitate decentralized governance by casting their votes on submitted proposals. The latter enables second-layer innovations.

In addition to the right to participate in on-chain governance, PIVX masternodes are incentivized for their contributions to the network. Under the current block reward structure, 4 PIV goes to stakers, masternode operators are rewarded with 6 PIV, and 10 PIV goes to the DAO Treasury for budget and development.

Here’s a quick checklist if you intend to directly host a PIVX masternode:

• 10,000 PIV collateral
• 24/7 server uptime
• Dedicated IP

Governance in PIVX

PIVX stands out from many blockchain projects by placing decentralized governance at its core. Unlike systems where governance is an afterthought or primarily controlled by the core team, PIVX mandates that every penny allocated from the treasury must undergo a community-wide vote. This crucial step ensures that Masternode operators, as key stakeholders, have a direct say in how the treasury fund is utilized.

Each cycle, a substantial sum of 432,000 PIV is allocated to the treasury. Community members, including core developers, can submit proposals for funding. These proposals can encompass a wide range of initiatives, from critical protocol upgrades and innovative development projects to vital community outreach programs.

Masternode owners are entrusted with the weighty responsibility of evaluating each proposal meticulously. They must consider its potential impact on the entire PIVX ecosystem, ensuring that the treasury fund is utilized ethically and effectively to advance the long-term goals of the project.

For a proposal to pass, it must receive a net positive vote of at least 10%.

What’s Expected of You

Whether you like it or not, ethical voting in the PIVX ecosystem is paramount to the project’s long-term success. Masternode owners must carefully consider the implications of each proposal before casting their votes. It is crucial to prioritize the overall health and sustainability of the PIVX ecosystem, ensuring that all decisions are made in the best interests of the community as a whole.

I want to define ethical voting as putting the interest and sustainability of the project ahead of your personal interests. You have the right as a masternode holder to vote against a proposal if you believe it does not serve the community’s interests.

It is also important to engage in open discussions with other community members, and carefully analyze the potential risks and rewards associated with each proposal. By exercising your voting rights responsibly and ethically, you can contribute significantly to the growth and development of PIVX.

PIVX. Your Rights. Your Privacy. Your Choice.
To stay on top of PIVX news please visit PIVX.org and Discord.PIVX.org.

Ethical Voting in DAOs: The Role of Masternode Owners in PIVX Governance was originally published in PIVX on Medium, where people are continuing the conversation by highlighting and responding to this story.

How to use PIVCards

PIVCards is a user-friendly platform for purchasing gift cards using PIVX coins. Launched in 2023, the platform allows you to effortlessly buy gift cards for Amazon, Steam, Netflix, and countless other brands, all powered by the privacy of PIVX.

Here’s a step-by-step guide on how to use PIVCards and spend your PIV coins.

• Step 1: Visit the official PIVCards website. Unlike other gift cards platforms that may require you to create an account, there is no need to sign-up or use your email on PIVCards. The process is completely private, meaning you can make your purchase with SHIELDed PIV. Furthermore, payments are sent to a shielded address.

• Step 2: Select your region and search for your preferred gift card. There are thousands of gift cards to choose from. For this example, I chose a 50-pound Airbnb gift card in the United Kingdom.

• Step 3: The next step is to input a refund address. Your PIV coins will be returned to this address if there are any issues with the purchase or if you change your mind before the transaction is completed.

Note: You can set your web browser to remember your refund address to avoid repeating this step every time you use the platform.

• Step 4: Proceed to checkout by depositing the equivalent amount of PIV (£50 pound worth in this case) into the given address. You can opt for the MyPIVXWallet one-click checkout or transfer the funds from any PIVX wallet. Failure to complete the process within 30 minutes will lead to a cancellation.
• Step 5: Once the transaction is confirmed on the PIVX blockchain, the funds will be credited to your PIVCards account and the gift card code will be released. Easy Pizzi, right?

PIVX. Your Rights. Your Privacy. Your Choice.
To stay on top of PIVX news please visit PIVX.org and Discord.PIVX.org.

How to use PIVCards was originally published in PIVX on Medium, where people are continuing the conversation by highlighting and responding to this story.

PIVX Weekly Pulse (Dec 6th, 2024 — Dec 11th, 2024)

PIVX Weekly Pulse (Dec 6th, 2024 — Dec 11th, 2024)

Hello PIVians, welcome to your weekly roundup of all things PIVX. Join us as we dissect the latest price action, explore exciting project developments, and highlight the most buzzworthy community news.

Top Stories

• New Poloniex Listing: A long-awaited dream has become a reality! PIVX has officially been listed on the Poloniex exchange. While trading isn’t live yet, the listing is a major milestone for the privacy-focused coin. Get ready for PIVX/USDT trading pairs!
• MyPIVXWallet Gets v2.1 Update: PIVX Labs has rolled out new updates for the MyPIVXWallet (MPW). The v2.1 improvement introduces full shield activity, exponentially faster shield synchronisation, and redesigned notifications.

Price Actions

• The Daily USD Value for PIVX ranged between $0.37 and $0.29, with an Average USD price of $0.33.
• The Daily Trading Volume for PIVX ranged between $3.67M and $8.98M, with an Average Daily Volume of $4.99M. The total transactional volume for the past week was approximately $30 million.
• The top three spot markets for PIVX based on trading volume have been Binance, Bitconomy, and BitMart. MEXC and WEEX have also recorded significant volume in the PIVX Futures market.

PIVX. Your Rights. Your Privacy. Your Choice.
To stay on top of PIVX news please visit PIVX.org and Discord.PIVX.org.

PIVX Weekly Pulse (Dec 6th, 2024 — Dec 11th, 2024) was originally published in PIVX on Medium, where people are continuing the conversation by highlighting and responding to this story.

PIVX Welcomes Poloniex: A 2017 Legacy Fulfilled

In what could be best described as a historic moment for PIVX, the privacy-focused cryptocurrency has officially been listed on the Poloniex exchange. This milestone, once the subject of vigorous community discussions in 2017, has finally materialized in 2024.

The Poloniex listing is a testament to PIVX’s unwavering commitment to privacy, security, and innovation. Over the years, the project has consistently delivered on its promises, building a strong and loyal community. This listing is a recognition of these efforts and a significant step forward in PIVX’s journey to mainstream adoption. Jeffrey, the lead of business development for PIVX, expressed his sense of fulfilment on the listing. He said:

“I feel that it’s a true testimony to the growth of PIVX. In 2017, it [Poloniex] was one of the most in-demand exchange listings, and the number of times we requested a listing and never got it made listing seem impossible. Under my watch, the listing agreement with Poloniex was a breeze! And it’s likely going to be the same for future listings. I’m honestly proud of all the achievements we’ve made in one year.”

Although the listing has officially been announced by Poloniex, trading is yet to commence. However, the coin can be traded on the PIVX/USDT pairs once live.

PIVX. Your Rights. Your Privacy. Your Choice.
To stay on top of PIVX news please visit PIVX.org and Discord.PIVX.org.

PIVX Welcomes Poloniex: A 2017 Legacy Fulfilled was originally published in PIVX on Medium, where people are continuing the conversation by highlighting and responding to this story.

Privacy: A Necessity for Web3’s Institutional Future

We are all familiar with the frenzy that follows the institutional adoption of cryptocurrencies. For instance, the price of Bitcoin hit a new all-time high in February 2021 after news broke that Tesla had purchased $1.5 billion worth of the digital asset. But beyond these headline-grabbing moves, how often do we see real-world applications such as major companies using crypto for deals or payroll?

According to Avidan Abitbol, crypto’s promise of transparency, a key selling point, paradoxically creates barriers to institutional adoption. Speaking to Cointelegraph, the project director for the Data Ownership Protocol (DOP) privacy solution asserted that transparency has become a double-edged sword for cryptocurrencies.

He highlighted the security and competitive risks associated with blockchain transparency. He warned that public blockchains, such as Bitcoin and Ethereum, make institutions vulnerable to theft, scams, and strategic disadvantage.

“Institutions want to hide payments, workflow, daily work, who they pay, and when. If you have Bitcoin or Ethereum balances, those things are very relevant to other people.”

Abitol goes on to argue that transparency can fuel market volatility, as traders may capitalize on the visibility of large institutional holdings or transactions to manipulate asset prices. I agree with this argument to a large extent because the crypto market has consistently reacted to news linked to institutional players (buy the rumour and sell the news).

Privacy is the Key

Privacy is essential to safeguarding sensitive institutional operations. The lack of robust privacy features on public blockchains impacts industries beyond finance, such as healthcare, where patient confidentiality is paramount.

Innovative blockchain solutions already exist to solve this challenge. PIVX, a leading blockchain offering advanced privacy features, allows users to conduct confidential transactions. By leveraging advanced cryptographic techniques like Zero-Knowledge Proofs, PIVX enables users to maintain their privacy while participating in the blockchain ecosystem. This level of privacy is crucial for institutions, as it allows them to conduct sensitive financial operations without compromising security or regulatory compliance.

Another solution in this regard is Chainlink’s suite of privacy-enhancing tools, including the Blockchain Privacy Manager and CCIP Private Transactions. These features enable institutions to conduct confidential transactions on public blockchains. ANZ Bank, for instance, has already leveraged Chainlink’s privacy solutions to facilitate secure tokenized asset settlements.

PIVX. Your Rights. Your Privacy. Your Choice.
To stay on top of PIVX news please visit PIVX.org and Discord.PIVX.org.

Privacy: A Necessity for Web3’s Institutional Future was originally published in PIVX on Medium, where people are continuing the conversation by highlighting and responding to this story.

PIVX for Beginners: Your Complete Guide to Getting Started

Short for Private Instant Verified Transaction, PIVX is a leading blockchain project that prioritizes user privacy, security, and decentralized governance. Unlike many mainstream cryptocurrencies, the project offers users a powerful alternative that emphasizes individual financial sovereignty.

To clear your doubts, privacy is not akin to malicious or anti-government. PIVX is open-source, licensed under MIT, and is committed to complying with global AML/CFT standards, including FATF regulations.

While I wouldn’t want to bore you with a long history of PIVX, here’s a compressed timeline of the project’s development.

· Launched on January 30th, 2016 under the name Darknet (DNET)

· Transitioned to Proof-of-Stake (PoS) after 259200 blocks

· Rebranded to PIVX on January 1, 2017

· Operates a robust decentralized autonomous organization (DAO), governed by masternode holders

· Became the first PoS network to enable transaction anonymity in October 2017

· Delivered SHIELD, a fully customized integration of zk-SNARKs, in 2020

· Multiple exchange listings and vendor integrations since inception

Getting Started with PIVX

1. Where to Store PIVX

You will need a wallet to store your PIV coins irrespective of how you choose to participate in the PIVX ecosystem. From the PIVX Core wallet to the much lighter MyPIVXWallet (MPW), third-party web wallets such as Komodo, Arctic, and NOW Wallet, there are a plethora of options to choose from.

As a rule of thumb, larger funds should be stored in cold storage such as the PIVX Core wallet or Ledger, while smaller amounts can be left on centralized exchanges for trading or the MPW for staking and masternoding.

2. How to Get PIVX

You can purchase PIV using fiat or other cryptocurrencies on exchanges that support it. Alternatively, you can acquire the coins through peer-to-peer trading platforms.

The cryptocurrency is listed on popular CEX such as Binance, MEXC, Gate.io, BitMart, XT.COM, and several others.

Another interesting way to obtain PIV coins is by participating in the ecosystem. The PIVX marketing team routinely hosts giveaways on social media.

3. Staking Your PIV Coins

Staking is one of the ways to participate in the PIVX ecosystem. Stakers secure the network and build the blockchain by creating the blocks and submitting them to the network. The interesting thing about staking PIV is that users can earn staking rewards while keeping their funds securely locked in offline cold storage.

Once a node has fully synchronized with the PIVX network and holds a minimum of 1 PIVX, it becomes eligible to participate in staking and contribute to network security. At the time this article was written, the estimated annual ROI was 13%. Check out this guide to learn more about staking your PIV coins.

4. Your Voice Matters, Become a Masternode Operator

Masternodes, and by extension, decentralized governance, is one of the cornerstones of PIVX. Masternodes provide layer 2 services such as instant send and additional security for the network. Hosting a PIVX masternode requires a 10,000 collateral, with an estimated ROI of around 15% per annum.

In addition to PIV rewards, masternodes are given voting rights to participate in governance.

PIVX’s decentralized governance system allows the community to propose and vote on projects, with masternodes playing a key role in decision-making. The treasury provides a monthly budget of 432,000 PIV for community-driven projects. Proposals that garner sufficient support from masternode holders are funded from this treasury.

PIVX. Your Rights. Your Privacy. Your Choice.
To stay on top of PIVX news please visit PIVX.org and Discord.PIVX.org.

PIVX for Beginners: Your Complete Guide to Getting Started was originally published in PIVX on Medium, where people are continuing the conversation by highlighting and responding to this story.

The Future of Privacy Coins

On October 31, Kraken delisted Monero (XMR) from its European Economic Area (EEA) market, joining the growing list of exchanges that have brought down the hammer on coins that allow users to transact anonymously.

A perfect storm of regulatory pressure has battered privacy coins in 2024. Nearly 60 delistings, a record since 2021, have swept across centralized exchanges. Monero and Dash have been particularly hard-hit, with delistings skyrocketing sixfold and nearly twentyfold, respectively.

Given the stringent stance of regulators, one is left to ponder the future of privacy coins. Will there be more clampdowns or will they enjoy increased patronage amid a growing concern for financial privacy?

What Are Privacy Coins?

Privacy coins are cryptocurrencies designed to obfuscate transaction details. Like a magic cloak that hides your financial transactions from prying eyes, they make it extremely difficult to trace the sender, recipient, and amount of a transaction.

Think of it this way: when you use a regular cryptocurrency like Bitcoin, everyone can see your transactions on a public ledger. It’s like your financial life is an open book. But with privacy coins, your transactions are shrouded in mystery. It becomes much harder for anyone to track your spending habits.

Fun fact: Bitcoin may seem anonymous, but it’s more like a pseudonym. By delving into the blockchain, it’s often possible to unmask the identities behind public keys.

Brief History of Privacy Coins

One of the earliest pioneers in this space was Bytecoin, which introduced ring signatures to mask the origin of transactions in 2012. However, concerns about its initial distribution and lack of transparency hindered its adoption.

Monero, a fork of Bytecoin, built upon these foundations and introduced further privacy enhancements, including stealth addresses and Ring Confidential Transactions in 2014. These innovations made it significantly more difficult to track the flow of funds, propelling Monero to the forefront of privacy-focused cryptocurrencies.

ZCash, another major player, introduced zk-SNARKs, a powerful cryptographic technique that allows users to prove the validity of a transaction without revealing any specific details. While this offered strong privacy, it required significant computational resources and a trusted setup process.

Other projects, such as Dash, PIVX, Verge, and NavCoin, also emerged, each with its unique approach to privacy. Dash, for example, introduced optional privacy features like CoinJoin, while PIVX focused on a combination of privacy and masternode governance.

The Regulatory Tightrope

Regulators have long eyed privacy coins with suspicion. For years, they’ve been tightening the noose around these anonymous cryptocurrencies. Japan led the charge in 2018 with a blanket ban, followed by Australia and South Korea in 2020. The UAE’s strict crypto rules and the EU’s MiCA regulation further proved hostile.

Major exchanges have felt the heat. Kraken delisted XMR for European users in 2024, while Binance pulled the plug entirely. OKX and Huobi also succumbed to regulatory pressure, delisting privacy tokens in 2024 and 2022, respectively.

These regulatory crackdowns have cast a long shadow over the future of privacy coins. As governments worldwide tighten their grip on cryptocurrencies, privacy-focused coins will face an uphill battle. The recent delistings on top exchanges highlight the challenges these coins may face.

While we may see more clampdowns in more jurisdictions, I believe a sizeable portion of the market will be transferred to decentralized exchanges. Proponents of the privacy ethos will likely look for ways to bypass these hurdles even in restricted jurisdictions. A decentralized approach, driven by a strong community, could help privacy coins thrive in a hostile regulatory environment. By fostering community-led development and promoting decentralized exchanges, privacy coins may be able to circumvent traditional regulatory hurdles.

I also envisage that privacy coin developers will adapt by exploring innovative solutions. This could involve developing new privacy-enhancing technologies or focusing on specific use cases that align with regulatory frameworks. There are already a few solutions in this regard. For instance, PIVX allows for both SHIELDED and transparent transactions, offering users optional privacy.

Give the Dog a Bad Name and Hang Him

In one of my previous articles, I separated facts from myths regarding the use of cryptocurrencies as a tool for money laundering. “Traditional fiat currencies have been the primary vehicle for money laundering for centuries,” not cryptos. However, critics often raise dust over crypto’s potential use in money laundering, difficulties in implementing KYC and AML regulations, and concerns about tax evasion. While these concerns are valid, the upsides of the tech are often downplayed.

Privacy coins are not just about hiding transactions. They represent a broader movement towards financial sovereignty, protection from economic surveillance, resistance to censorship, and providing financial tools for unbanked populations.

Conclusion

Privacy coins stand at a critical juncture. They represent not just a technological innovation, but a philosophical stance on financial freedom and individual privacy. As digital surveillance becomes more pervasive, these cryptocurrencies offer a potential counterbalance, ensuring that individuals maintain control over their financial information.

In general, the future of privacy coins will be shaped by a delicate balance between technological innovation, regulatory adaptation, and societal acceptance.

PIVX. Your Rights. Your Privacy. Your Choice.
To stay on top of PIVX news please visit PIVX.org and Discord.PIVX.org.

The Future of Privacy Coins was originally published in PIVX on Medium, where people are continuing the conversation by highlighting and responding to this story.

Top Places You Can Use Your PIVX

Can’t buy a Tesla with PIVX just yet? No worries! There are tons of other cool places where you can spend your PIVX. Let’s dive right in!

1. PIVCards

Launched in 2023, PIVCards offers a fast and private way to purchase gift cards. From popular selections like Amazon, Steam, Netflix, and lots more, there are thousands of gift cards that you could spend your coins on.

One key feature of the platform is that users can make purchases via transparent or SHIELDed PIVX, obfuscating the transaction details.

2. Travala

Dreaming of a tropical getaway or a city adventure? Then spending your PIVX on things like flights, hotels, and accommodations shouldn’t be a hassle. With Travala, a cryptocurrency-friendly online travel agency, you can book your next adventure using PIVX.

The platform offers a vast selection of accommodations, flights, and activities worldwide. You can easily book your travel using PIVX, other supported cryptocurrencies, or fiat.

3. Coinsbee

Similar to PIVCards, Coinsbee allows you to buy payment cards, mobile top-ups, and gift cards with PIVX and other cryptocurrencies. There are more than 4000 brands to choose from in over 185 countries.

4. Merchant Stores

In addition to these three options, there are countless merchant stores where you can spend your PIVX through payment gateways. NOWPayments and CoinPayments are the two leading paying gateways accepting PIVX.

By extension, data on Cryptwerk.com reveals that PIVX is accepted in over 200 merchant stores across the globe. These stores cut across several industries such as internet services, gaming, ecommerce, and blockchain services.

PIVX. Your Rights. Your Privacy. Your Choice.
To stay on top of PIVX news please visit PIVX.org and Discord.PIVX.org.

Top Places You Can Use Your PIVX was originally published in PIVX on Medium, where people are continuing the conversation by highlighting and responding to this story.

Meta’s $15M Privacy Violations Fine: A Wake-Up Call for the Digital Age

Ever felt like the internet is spying on you? You searched for a pair of shoes, and suddenly every ad was for a sneaker. That’s targeted advertising, but that’s not what this post is entirely about.

In early November, the South Korean Personal Information Protection Commission levied a $15 million fine on Meta for illicitly collecting and sharing sensitive user data. The four-year investigation revealed that the tech giant had gathered personal information, including political views, sexual orientation, and religious beliefs, from approximately 980,000 Facebook users without explicit consent. This data was subsequently shared with over 4,000 advertisers.

While the Meta scandal highlights the pervasive nature of digital surveillance, it’s important to recognize that financial privacy is also under threat. Traditional banking systems, though seemingly private, are subject to extensive regulatory oversight. Every transaction, no matter how small, is recorded and can be accessed by government agencies. This level of surveillance raises questions about the extent to which financial privacy can truly be protected in the traditional banking system.

The Data Economy

The digital economy thrives on data. User data is the lifeblood of many tech companies, enabling them to personalize ads, recommend products, and refine their services. However, this data-driven approach raises serious privacy implications. When personal information is collected and analyzed without explicit consent, it can lead to targeted advertising, identity theft, and even social manipulation.

In the financial space, cyberattacks and data breaches are on the rise, exposing sensitive financial information to malicious actors. To put things in perspective, a staggering 75% of financial services organizations have fallen victim to at least one data breach in the past five years. It is also an open secret that governments may use data collected by financial institutions to monitor citizens’ economic activities.

Cryptocurrency: A Double-Edged Sword

Cryptocurrencies, often touted as a bastion of financial privacy, are not immune to surveillance. While legacy blockchain technology offers a transparent and immutable ledger, it also exposes transaction data to public scrutiny. Although pseudonymous, blockchain analysis tools can be used to track the flow of funds and identify individuals behind certain transactions.

This is where privacy coins like PIVX and others shine. PIVX, in particular, stands out as a leading privacy-focused cryptocurrency, offering a comprehensive suite of privacy features such as zero-knowledge proofs.

In an era where personal information is constantly being collected and analyzed, these cryptocurrencies offer a much-needed solution for individuals seeking to maintain control over their online presence.

PIVX. Your Rights. Your Privacy. Your Choice.
To stay on top of PIVX news please visit PIVX.org and Discord.PIVX.org.

Meta’s $15M Privacy Violations Fine: A Wake-Up Call for the Digital Age was originally published in PIVX on Medium, where people are continuing the conversation by highlighting and responding to this story.

Perpetual Contracts: A Beginner’s Guide

There has been a growing interest in crypto-based derivative products such as perpetual futures, options, futures markets, and contracts since 2019. You may be shocked to learn that monthly futures trading volumes on centralized exchanges have not gone below the $1 trillion mark since the beginning of 2024, often outpacing spot trading volumes.

Derivative products allow investors to speculate on the upward and downward price fluctuations of cryptocurrencies, without direct ownership. As a result, they offer greater flexibility and potential for higher returns compared to traditional spot trading.

Following PIVX’s recent perpetual listing on WEEX and an upcoming listing on XT.com, it is definitely a perfect time to learn about perpetual contracts, aka perps. This beginner’s guide explores the world of perps, how they work, and their pros and cons.

What Is a Perpetual Contract?

Let’s say you believe PIVX is going to the moon. Instead of buying and holding PIVX directly, you could use a PIVX perpetual contract to amplify your position. This contract enables you to bet on whether PIVX’s price will go up or down without actually owning the coins.

· Bullish on PIVX: If you think PIVX will rise in value, you can take a long position on a PIVX perpetual contract. This means you’re betting that the price will increase.

· Bearish on PIVX: If you think PIVX will decrease in value, you can take a short position. This means you’re betting that the price will fall.

Unlike traditional contracts, perps do not have an expiration date, meaning you can hold your position for as long as you want, regardless of market fluctuations.

However, there’s a catch: a “funding rate.” This rate adjusts the contract price to keep it aligned with the market price. If you hold a position for too long, you might have to pay or receive this funding rate, which can impact your overall profit or loss.

I must also warn you that although perpetual contracts offer leverage, they also come with significant risks. Market fluctuations can lead to substantial losses if not carefully managed.

How Does a Perpetual Contract Work?

Let’s use this simple example to explain how a perp contract works.

• Trading Pair: PIVX/USDT
• Position: Long (expecting the price of PIVX to increase)
• Entry price: $0.22
• Collateral/Margin: $100
• Leverage: 10x (your position is magnified by a factor of 10)
• Funding rate: 0.01% (a periodic fee charged to traders every 8 hours to align the contract price with the current market price).

In our hypothetical scenario, the trader goes long on PIVX, believing the price will increase. He deposits a collateral (margin) of $100 and uses a 10x leverage to control a larger position of $1,000.

The trader enters the PIVX/USD perpetual contract at a price of $0.22. To keep the contract price aligned with the actual PIVX price, a periodic fee (funding rate) is applied. When the perpetual price is higher than spot, longs pay shorts, and vice versa.

Assuming the price of PIVX moves by 20% from $0.22 to $0.262, the trader would make a profit of $200 upon closing their position. On the flip side, the trader also risks liquidation and losing the $100 margin if the price of PIVX falls below a certain threshold.

Pros of Trading Perpetual Contracts

· No Expiry Concerns: Unlike traditional futures, you don’t need to worry about rolling over positions or contract expiration dates. This makes position management much simpler.

· Leverage Opportunities: Most exchanges offer leverage on perpetual contracts, allowing you to open larger positions with less capital. However, remember that leverage is a double-edged sword that amplifies both gains and losses.

· Easy Price Discovery: The funding rate mechanism ensures that perpetual contract prices stay close to the spot market, making it easier to understand the current market value.

· Flexibility: You can go both long or short easily, allowing you to profit in both rising and falling markets.

Cons of Trading Perpetual Contracts

· Liquidation Risk: When trading with leverage, your position can be liquidated if the market moves against you beyond your margin requirements. Always use stop-loss orders and manage your position size carefully.

· Funding Rate Costs: Regular funding rate payments can impact your profitability, especially during periods of high market volatility. Monitor funding rates before opening positions.

· Market Volatility: Cryptocurrency markets are highly volatile. Combined with leverage, this can lead to significant losses if positions aren’t properly managed.

Best Practices

Do not be swayed by the potential to 10x or even 50x your investment. Perp trading carries a high-risk/high-reward ratio. As a beginner, start with small position sizes. As a rule of thumb, practice on testnet or paper trading platforms before attempting the real deal. And even when you do, use minimal leverage (1x-2x) until you master the ropes.

Keep track of your funding rates, carefully monitor your leverage levels, always use stop-loss orders, and never risk more than 1–2% of your trading capital on a single trade.

PIVX. Your Rights. Your Privacy. Your Choice.
To stay on top of PIVX news please visit PIVX.org and Discord.PIVX.org.

Perpetual Contracts: A Beginner’s Guide was originally published in PIVX on Medium, where people are continuing the conversation by highlighting and responding to this story.