Crypto Trading: New Players, Big Risks

Crypto trading is becoming more accessible. In the last month, perpetual futures, or perps, saw a huge $1. 27 trillion in trading volume. These trades are now available in popular crypto wallets like MetaMask and Phantom, and even on Telegram through the Blum mini-app. Perps are complex. They let users bet on future prices of assets like Bitcoin. Users can borrow money to increase gains, but this also means bigger losses if the market turns against them. On October 10th, a massive wave of liquidations wiped out $19 billion in just hours. Before, these high-risk trades were only on offshore exchanges. Now, decentralized platforms like Hyperliquid let anyone with a crypto wallet trade perps. This means millions of new users are exposed to these complex products without needing a centralized exchange. Perps are getting popular. For Phantom, perps trading makes up 16% of its revenue, and for MetaMask, it's 6%. Blum predicts perps will make up 80% of its volume by early 2026. MetaMask's Senior Product Director Mike Lwin calls the early traction "exceptional. " But there's a problem. Easier access means more new, inexperienced users. Many don't understand how perps work or the risks involved. Gleb Kostarev, co-founder of Blum, points out that many users don't even know what auto-deleveraging is, a key part of perp trading. He stresses the need for better user education. Some analysts worry that the popularity of perps could create systemic risk in the crypto market. Others argue that the impact is small. Most risk comes from large traders, or "whales, " who hold massive leveraged positions. Blum's Kostarev says high leverage is used to attract retail users, not whales. That's why Blum offers up to 100x leverage, targeting new traders and those from developing countries. MetaMask's Lwin sees the lower barrier to entry as a way to reach a larger audience, deepen liquidity, and speed up the shift from centralized to decentralized products. However, Messari's Matthew Nay calls it a "double-edged sword. " While it allows retail traders to access unique crypto products, it could also turn them off if they lose money due to poor education. Gregoire Magadini, Director of Derivatives at Amberdata, warns that these products are targeting users who might be more passive. Leveraged positions need active management, profit targets, stop losses, and high-quality data feeds to control risk. Easier access to tradable products has worked before, but new traders should plan their trades carefully.