by Rushali 
In 2016, BitMEX launched its Bitcoin perpetual futures market and it had given a new pattern for the traders. It was not the first platform to provide BTC-settled inverse swaps, but it has given usability to a wider range of audiences.
In BitMEX all the prices are calculated in USD but the profit and loss are paid in bitcoins, it doesn’t include stable coins or fiat money.
In 2021, Theta or USDT settled contracts are becoming more famous. USDT based contracts are easier for the investors to calculate their profit and loss.
BTC settled contracts are better than USDT, in this case, the buyer and seller have to deposit bitcoin as the margin. Binance offers BTC settled contracts. And with this type of contract, there is no need to use stable coins. So, it has less margin risk.
Algorithmic-backed stable coins have stabilization issues, while the fiat-backed ones run risks of seizures and government controls. Therefore by using the BTC settled trades one can eliminate these risks.
But it has a disadvantage as well when the price of BTC goes down one’s collateral also goes down in terms of USD.
This effect is known as non-linear inverse future returns and the buyer incurs more losses when the BTC price collapses.
In this terms, USDT futures are easy to manage because it remains unaffected with BTC price movements.
This contract doesn’t need an active hedge to protect collateral (margin) exposure, thus it’s a better choice for retail traders.
USDT settled futures are preferred by professional traders and that’s the reason behind its growing popularity.
