How to Trade Altcoin Perpetuals on Hyperliquid?
To trade altcoin perpetual contracts on Hyperliquid, you first bridge funds to your HyperCore account, then use USDC as margin to open positions on the order book. Here's a complete step-by-step guide from zero to your first trade.
A leading global cryptocurrency platform,suitable for both beginners and experienced traders.
New user benefit: 20% off trading fees upon registration!！
Prerequisites: Prepare Funds and Wallet
You need two things: USDC (preferably withdrawn from a centralized exchange) and an EVM-compatible wallet (such as MetaMask).
Where your funds sit determines the starting point. Scenario A: funds are on a centralized exchange (e.g., OKX, Binance). Scenario B: funds are already in your own on-chain wallet (e.g., MetaMask).
Bridge USDC to Your HyperCore Account
Hyperliquid runs on its own L1 chain (HyperCore) and cannot receive ERC-20 USDC directly. The officially recommended on-ramp is the Across bridge.
Scenario A (starting from an exchange): withdraw USDC from the exchange to any chain supported by Across. Across currently supports 23+ chains including Ethereum, Arbitrum, Base, and Solana. Pick the chain with the lowest withdrawal fee – it only serves as a transfer point.
Scenario B (starting from an on-chain wallet): make sure your USDC is on a chain supported by Across, then go straight to the next step.
Open Across's dedicated Hyperliquid bridging page and connect your wallet. Select the source chain where your USDC is, and set the destination chain to Hyperliquid. Enter the amount and confirm the transaction. Across will deliver the USDC to your HyperCore account in about 2 seconds. If your wallet has never traded on Hyperliquid, this step will automatically create your account.
Completion indicator: your USDC balance shows up on the Hyperliquid trading interface.
Placing an Order on Hyperliquid
Open the Hyperliquid trading interface. You'll see an order book that looks like a centralized exchange, but all operations happen on-chain.
Choose the altcoin perpetual contract you want to trade. Note: aside from major coins like BTC and ETH, many altcoin markets are created by third parties through HIP-3 proposals. Maximum leverage and pricing mechanisms may differ. Always check the max leverage for that market before trading.
Decide your direction: long (buy, expecting price to rise) or short (sell, expecting price to drop).
Set your leverage. Click the leverage button to adjust the multiplier. Hyperliquid supports up to 40x leverage (varies by coin). It's recommended to use isolated margin mode so your maximum loss is limited to that position's margin and won't affect the rest of your account.
Enter price and quantity, then place your order. You can choose between:
- Market order: executed immediately at the best available price.
- Limit order: set a price and wait to be filled. If you add liquidity (Maker), the fee is lower at 0.015% (taker fee is 0.045%).
Risk warning: perpetual contracts are highly leveraged products. According to user reports, it's not uncommon to lose one-third of your position's value in a day. Always set stop-loss orders and avoid using your full capital on a single trade.
Managing and Closing Positions
After placing your order, your position will appear at the bottom of the page. You can see the entry price, mark price, unrealized PnL, and liquidation price.
To close a position, click "Close" or open an equal and opposite position. For example, if you opened a 1 ETH long, closing means selling 1 ETH.
Funding Rate Reminder
Like all perpetual contracts, Hyperliquid settles funding rates every 8 hours (typically at 00:00 UTC, 08:00 UTC, and 16:00 UTC).
- If the funding rate is positive, longs pay shorts.
- If you hold a position and the rate is against you, it acts as a holding cost. The total funding fees across all altcoin markets on Hyperliquid can reach millions to hundreds of millions of dollars annually.
FAQ
Q: Can I use ETH or SOL as margin directly? No. Hyperliquid's perpetual contracts uniformly use USDC as margin and settlement currency. You must first convert your assets into USDC before bridging and trading.
Q: How do altcoin contracts on Hyperliquid differ from those on centralized exchanges (CEXs)? There are two main differences: First, through HIP-3, anyone can create perpetual markets for new altcoins, so you might trade coins with thin order books. Second, your funds are fully self-custodied on-chain, and trading incurs no gas fees, but you must use a bridge to deposit funds.
Q: Why is my order not being filled? The order book is on-chain and liquidity may not match top-tier CEXs. Check if your limit price is too far from the current spread, or if the altcoin market lacks depth. Try cancelling the order and placing a new one closer to the market price.
A leading global cryptocurrency platform,suitable for both beginners and experienced traders.
New user benefit: 20% off trading fees upon registration!！
Next Steps
After your first trade, review your account balance and position history to confirm everything is accurate. If you want to stop trading, make sure to close all positions, then use Hyperliquid's "Withdraw" function to send USDC back to your original on-chain wallet. Withdrawals usually require you to confirm a transaction on-chain; once confirmed, wait for the funds to arrive.
