How to Start Your First TradFi Trade
2026-06-09Beginner
2026-06-09Beginner
Core Summary:
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Trading traditional financial assets no longer requires tedious currency exchanges and overseas account openings; USDT has become the universal bridge connecting the two major markets.
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Perpetual futures break the time and space constraints of the traditional stock market, allowing you to capture global market trends 24/7.
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Strategic use of leverage not only amplifies returns with small capital but also serves as a practical risk-hedging tool for professional traders.
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On CoinW, simply prepare your funds, set an appropriate leverage level, and you can kick-start your global asset allocation journey with a single click.
For many beginners new to cross-border investing, buying traditional finance (TradFi) assets like US stocks and commodities can often be daunting due to a slew of professional jargon. Tedious steps like account opening, fiat deposits, and withdrawals are even more intimidating.
In reality, once you grasp a few core concepts, starting your first TradFi trade on CoinW is as easy as online shopping. This article will break down the most critical tools and mechanisms to help you confidently take that first step.
What is USDT? And Why Use It for TradFi Assets?
USDT is the most common "stablecoin" in the crypto market. Its value is pegged 1:1 to the real US dollar, which is why it is also known as the digital dollar.
In the past, to trade US stocks, you had to convert your funds into USD and wire them to an overseas account — a process that was both costly and incredibly time-consuming.
Now, USDT serves as a universal "trading chip." Trading TradFi assets on CoinW means no more waiting in line at the bank for currency exchanges. As long as you have USDT in your account, you can use it directly to trade the price movements of US stocks and other assets. This completely eliminates the friction costs of foreign exchange, allows for the instant and free flow of funds, and settles your profits directly back into your account in USDT.
What Are Perpetual Futures? The Secret to 24/7 Trading
In the traditional stock market, trading is strictly bound by time. US stocks not only have fixed opening and closing hours but are also closed on weekends and public holidays. If breaking news hits on a weekend, traditional account holders can only wait anxiously for the market to open on Monday.
To solve this, we introduce perpetual futures.
Perpetual futures are derivative tools that have no expiration date and require no physical delivery of the underlying asset. Their prices sync in real-time with the actual traditional asset. By eliminating the need for cumbersome physical stock transfers and clearing, perpetual futures shatter the time barriers of traditional finance. Whether it is the weekend or the dead of night, as long as the market is moving, you can jump in and seize the opportunity at any time.
Leverage as a Tool: Risk Hedging and Seizing Opportunities
Many people get intimidated when they hear the word "leverage," but for experienced traders, it is an incredibly useful everyday tool.
The essence of leverage is "borrowing power." Suppose the platform offers 10x leverage; you only need to put up 100 USDT to trade assets worth 1,000 USDT.
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Seizing Opportunities: When you spot a clear macroeconomic trend, leverage can help you use minimal capital to generate outsized returns, maximizing your capital efficiency. You can achieve substantial profits without tying up large amounts of funds.
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Risk Hedging: Leverage isn't just for offense; it is also a powerful defensive weapon. If you already hold certain spot assets and worry about a short-term market dip, you can use a small amount of capital to open a highly leveraged short (sell) futures position. If the market does drop, the profits from the futures position can offset the losses in your spot holdings, thereby protecting your overall portfolio.
Note: While leverage amplifies profits, it also magnifies losses. For beginners making their first trade, we highly recommend starting with low leverage and strictly setting stop-loss orders.
Conclusion
Starting your first TradFi trade isn't as complex as you might think. Prepare your USDT, select your preferred global hot assets, set your leverage appropriately, and you are ready to easily take your first step into cross-border investing on CoinW today.
Frequently Asked Questions (FAQ)
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Do I need to buy a whole share of a US stock?
No. Perpetual futures support fractional trading. You can flexibly adjust your purchase quantity based on your available capital, making it highly suitable for starting with small funds.
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Can I choose my own leverage multiplier?
Yes. Before trading on CoinW, you can manually adjust the leverage according to your personal risk tolerance.
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Can I trade US stocks on weekends?
Yes. Thanks to the perpetual futures mechanism, you can break free from traditional stock market hours and enjoy 24/7 trading.
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Will the price of USDT fluctuate drastically?
No. The value of USDT is always anchored 1:1 to the US dollar, making it an extremely stable asset in today's market.
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