# What’s the Difference between USDT-M & Coin-M Perpetual Contracts?

Perpetual contracts are typically offered in two formats: **USDT-Margined (USDT-M)** and **Coin-Margined (COIN-M)**. The main difference lies in what asset is used for margin, settlement, and PnL.

***

1. ### **Settlement Asset**

   ####   **USDT-M Perpetuals**

   * Settled in **USDT**
   * Margin, PnL, and funding fees are all calculated in USDT
   * Lower volatility, easier for most users to manage

   ####   **Coin-M Perpetuals**

   * Settled in the **underlying coin** (e.g., BTC, ETH)
   * Margin, PnL, and funding fees are calculated in that coin
   * Suitable for users who prefer holding or accumulating crypto assets

***

2. ### **Risk & Volatility Differences**

   ####   **USDT-M**

   * Margin value is stable and **not affected by coin price volatility**
   * Easier to manage risk and maintain healthy positions

   ####   **Coin-M**

   * Margin value **changes with the coin price**
   * When coin price drops → liquidation risk increases
   * When coin price rises → leverage becomes more powerful

***

3. ### **Which Users Are They Best For?**

| User Type                           | USDT-M Perpetuals         | Coin-M Perpetuals |
| ----------------------------------- | ------------------------- | ----------------- |
| Beginners                           | ✔ More intuitive & easier | ✘ Not recommended |
| Stable yield seekers                | ✔ Lower volatility        | ✘ Less stable     |
| Users wanting to accumulate BTC/ETH | ✘ Not ideal               | ✔ Best choice     |
| Long-term holders (HODLers)         | Can be used               | ✔ More suitable   |

***

4. ### **Trading Experience Differences**

   ####   **USDT-M Perpetuals**

   * More trading pairs available (e.g., BTCUSDT, ETHUSDT)
   * PnL is easy to understand and track
   * Suitable for short-term and active trading

   ####   **Coin-M Perpetuals**

   * Favoured for long-term strategies
   * Often used in bull markets to **earn more BTC/ETH**
   * Slightly higher learning curve and entry barrier

***

### **Summary**

* **USDT-M** = Stable, simple, ideal for most traders
* **Coin-M** = Volatile, but great for users who want to accumulate crypto assets