The line between traditional finance (often called TradFi) and the world of cryptocurrencies is becoming increasingly blurred. Now, Binance Futures allows access to a selection of assets from traditional financial markets directly on its platform. In practical terms, this means you can speculate on the price of gold or major tech stocks using the same app as for Bitcoin and other cryptocurrencies.
Why is this important?
Traditional stock markets operate with strict trading hours. If major news breaks over the weekend or overnight, you have to wait for the market to reopen to act. On Binance, these contracts are accessible 24/7, allowing you to react immediately to announcements and events.
Another key point: the contracts are settled in stablecoins, particularly USDT. This avoids repeated conversions between fiat and cryptocurrencies. Here are the 12 traditional assets currently among the most popular on the platform.
Precious Metals
Commodities, and precious metals in particular, are often used as a hedge against inflation and economic instability. Binance offers contracts on four major metals: gold, silver, platinum, and palladium.
1. Gold (XAU)
Gold has historically been considered a universal store of value and one of the earliest forms of money. The XAUUSDT contract allows you to speculate on its price movements without having to physically purchase a gold bar or finance its secure storage. During periods of high inflation or economic uncertainty, gold generally attracts more investors.
2. Silver (XAG)
Silver, accessible via the XAGUSDT contract, serves a dual purpose: safe-haven asset and industrial metal. This characteristic often gives it higher volatility than gold, which can create different opportunities for traders.
3. Platinum (XPT)
A rare metal widely used in the automotive industry, platinum is represented by the XPT contract. Its price reflects, in particular, the health of the automotive sector and the overall level of industrial production.
4. Palladium (XPD)
Like platinum, palladium is a strategic industrial metal. The XPD contract provides exposure to supply and demand dynamics, which are particularly influenced by supply chains and producing countries.
Crypto Ecosystem and Financial Markets Stocks
5. Strategy (MSTR)
Although officially a software company, Strategy is best known for its significant Bitcoin holdings. Trading the MSTR contract is, for many, a way to gain indirect exposure to Bitcoin, often with leverage. This is a common method used by some institutions to gain exposure to BTC.
6. Coinbase (COIN)
Coinbase is a publicly traded cryptocurrency exchange. Its stock price frequently fluctuates in correlation with the state of the crypto market. COIN contracts thus allow investors to speculate on the overall dynamics of the digital economy.
7. Robinhood (HOOD)
Robinhood made a name for itself by democratizing commission-free stock and cryptocurrency trading. The ticker symbol HOOD is sometimes seen as an indicator of retail investor sentiment and the convergence between traditional finance and crypto.
8. Circle (CRCL)
Circle is the company behind the USDC stablecoin. While generally private or included in investment baskets, CRCL contracts allow investors to bet on the development of digital payments and stablecoin-related infrastructure.
Large Technology Companies and Innovation
Binance Futures also offers contracts on several tech giants, allowing investors to anticipate market reactions to financial results or new product launches, all within a crypto environment.
9. Tesla (TSLA)
Tesla is a global leader in electric vehicles and has also held Bitcoin on its balance sheet. The TSLA contract is known for its volatility, often influenced by tech news and the media presence of its CEO, Elon Musk.
10. Amazon (AMZN)
Amazon dominates both online retail and a large portion of global cloud services. Trading AMZN allows investors to position themselves on the health of global consumer spending and technology infrastructure.
11. Palantir (PLTR)
Palantir specializes in big data analytics and artificial intelligence. The PLTR contract is particularly attractive to investors optimistic about the data economy and government contracts in the defense sector.
12. Intel (INTC)
Intel designs semiconductors used in personal computers and data centers. The INTC contract offers exposure to the electronic chip industry, essential for both gaming and cryptocurrency mining.
Conclusion
The integration of TradFi assets like AMZN, MSTR, TSLA, and XAU on Binance Futures represents a major development for traders and investors. Market access becomes simpler, without the constraints of traditional trading hours and without the need for significant initial capital.
However, it is important to remember that these are derivative products: you do not own the actual stock or the physical metal. Furthermore, the potential use of leverage significantly increases the level of risk. It is therefore essential to have a clear strategy and only invest amounts you are prepared to lose.
