Differences between cryptocurrency perpetual contract trading and leverage trading

The differences between cryptocurrency perpetual contract trading and leverage trading are as follows:

1. Contract Type: Perpetual contracts are derivative contracts without an expiration date. Unlike futures contracts, there is no delivery date limitation. Leverage trading can be applied to various types of contracts, including perpetual contracts.
2. Settlement Method: Perpetual contracts do not require actual delivery of the cryptocurrency. Traders can hold positions indefinitely and only need to pay funding fees. Leverage trading can involve actual delivery or settlement of cryptocurrencies, depending on the rules and regulations of the exchange or platform.
3. Funding Fees: Perpetual contract trading involves funding fees, which are charges to maintain the contract price close to the underlying asset price. Leverage trading may have interest costs, but funding fees are not necessarily present.
4. Trading Flexibility: Perpetual contract trading offers more flexibility, allowing for long-term positions or short-term trades, and the ability to adjust leverage ratios to manage risks flexibly. Leverage trading also has some flexibility, but it may be subject to rules and requirements of the exchange or platform.