What Is TradFi? Why Do Crypto Users Need It?

TradFi is short for Traditional Finance. It covers traditional financial markets such as stocks, ETFs, forex, gold, crude oil, and indices. At Hotcoin, we help you access more global assets beyond Crypto through a single account.

If you are already familiar with BTC, ETH, stablecoins, and perpetual contracts, TradFi may sound very traditional and far removed from Crypto.

But it is not. U.S. stocks, ETFs, gold, silver, crude oil, forex, and global indices are all part of the TradFi market. Together, they form an important asset system in which global capital participates over the long term, and they continually influence risk appetite and capital flows in the Crypto market.

At Hotcoin, we introduced TradFi so that users do not have to repeatedly switch accounts and platforms between Crypto and traditional financial markets. With your familiar Hotcoin account and USDT, you can follow and trade more products connected to global traditional financial markets.

Which Assets Does TradFi Include?

TradFi is more than stocks. It covers multiple asset classes, each with different pricing logic and market characteristics.

1. Stocks, which represent shares in listed companies, such as shares of companies listed in the United States.

2. ETFs, which generally track a specific index, sector, commodity, or basket of assets.

3. Indices, which reflect the overall price performance of a particular market or group of assets.

4. Forex, which reflects exchange-rate movements between different fiat currencies.

5. Metals and commodities, such as gold, silver, and crude oil.

U.S. stocks may be affected by earnings reports, industry trends, and interest-rate expectations; gold may be affected by the U.S. dollar, real interest rates, and safe-haven sentiment; and the forex market is often affected by inflation, employment data, and central-bank policy.

Crypto users are familiar with on-chain data, market liquidity, industry events, and risk appetite. After learning about TradFi, you will have another perspective for observing global markets.

Why Do Crypto Users Need to Understand TradFi?

Understanding TradFi does not mean that you must trade TradFi. More importantly, it helps you understand a broader range of price drivers in global markets.

For example, U.S. CPI, nonfarm payroll data, Federal Reserve interest-rate decisions, technology-company earnings, and changes in gold prices can all affect how the market assesses risk assets. At certain times, Crypto and growth assets in U.S. equities may both be affected by changes in risk appetite; at other times, movements in the U.S. dollar, gold, and interest rates may also change the flow of market capital.

1. You can follow more global market signals instead of looking only at Crypto prices.

2. You can understand the possible correlations or divergences between U.S. stocks, indices, gold, forex, and Crypto.

3. You can access opportunities across more types of assets within a familiar trading experience.

More assets do not mean less risk. But when your perspective expands from a single market to a multi-asset market, your understanding of the macro environment and market rhythm can become more complete.

What Does Hotcoin TradFi Offer?

At Hotcoin, we offer TradFi Spot and TradFi Futures.

TradFi Spot covers stocks, U.S. stocks, metals, commodities, ETFs, indices, and instruments related to selected Asian markets. TradFi Futures offers perpetual contract products linked to the prices of traditional financial assets, covering stocks, U.S. stocks, metals, commodities, ETFs, indices, forex, and instruments related to selected Asian markets.

We continuously adjust available products, trading pairs, and trading parameters according to market conditions. Therefore, before trading, please refer to the latest trading pairs and rules displayed on the TradFi page.

Through Hotcoin TradFi, you can follow Crypto, U.S. stocks, gold, forex, indices, and other products related to traditional markets within one account, without repeatedly switching between multiple traditional financial platforms.

What Is the Difference Between Hotcoin TradFi Spot and TradFi Futures?

TradFi Spot is a spot product linked to the prices of traditional financial assets.

TradFi Futures is a perpetual contract product linked to the prices of traditional financial assets. It supports leveraged trading and may involve funding fees and liquidation mechanisms.

Trading Hotcoin TradFi does not mean directly purchasing or owning the corresponding stocks, ETFs, gold, or other underlying traditional financial assets. Trading a TradFi product related to a U.S. stock does not automatically make you a shareholder of the corresponding listed company, nor does it give you shareholder voting rights, direct dividend rights, or stock registration rights in a securities account.

Before trading, first confirm which type of product you have chosen and read the rules, fees, trading hours, and risk disclosures for the relevant trading pair.

How Do TradFi and Crypto Market Rules Differ?

Crypto markets generally operate continuously, close to 24 hours a day and 7 days a week. The underlying markets for TradFi have fixed trading hours and are also affected by weekends, public holidays, and market closures.

At Hotcoin, TradFi Spot products related to U.S. stocks follow U.S. market trading hours and may have adjusted availability on U.S. stock-market holidays. U.S. stock TradFi Futures are perpetual contracts, but when the underlying market is closed or trading hours change, the relevant products enter Reduce-Only mode.

In Reduce-Only mode, you cannot open new positions, but you can reduce or close positions. Therefore, even when you see the TradFi Futures trading interface, you still need to pay attention to whether the underlying market is open, whether it is close to closing, whether holidays are scheduled, and whether an earnings report or important economic-data release window is underway.

Prices, liquidity, and volatility risk may change significantly around market closes, reopenings, or major events.

What Should You Confirm Before Trading Hotcoin TradFi?

1. Confirm the product type. Understand whether you are choosing TradFi Spot or TradFi Futures.

2. Confirm the trading pair. Check whether the product is linked to U.S. stocks, ETFs, indices, forex, metals, or commodities.

3. Confirm the trading rules. Understand trading hours, fees, leverage range, margin requirements, and funding fees.

4. Confirm the market status. Watch whether the underlying market is open and whether earnings reports, interest-rate decisions, inflation data, or other important events are approaching.

5. Confirm your risk tolerance. TradFi Futures supports leverage. Leverage magnifies both potential gains and potential losses, and may trigger liquidation.

At Hotcoin, we hope to help you connect with global traditional financial markets more conveniently. But understanding the product, rules, and risks before trading is always more important than rushing to open your first position.

FAQ

Which assets can be traded through Hotcoin TradFi? We offer products related to traditional financial assets such as stocks, U.S. stocks, metals, commodities, ETFs, indices, and forex. Please refer to the TradFi page for specific trading pairs and product parameters.

Does trading Hotcoin TradFi mean directly holding U.S. stocks? No. Hotcoin TradFi products are linked to the prices of traditional financial assets, but this does not mean you directly purchase or own the corresponding stocks, ETFs, or other underlying assets.

Which currency is used to trade and settle Hotcoin TradFi? Both TradFi Spot and TradFi Futures are quoted and settled in USDT. Before trading, transfer USDT to the relevant account and make sure that your account balance is sufficient.

What are the risks of TradFi Futures? TradFi Futures supports leverage and may involve funding fees and liquidation mechanisms. Market prices, trading hours, liquidity, macroeconomic events, and underlying-asset volatility can all affect your positions.