Gate ETF leveraged tokens and contract trading analysis: How can ordinary users make informed choices?

Imagine you have some funds and want to enter the cryptocurrency market. When you see market fluctuations, you want to seize opportunities but also worry about excessive risks. On a comprehensive trading platform like Gate, you’ll find two completely different trading tools: ETFs and contract trading.

As of January 2026, data shows that Gate, one of the world’s leading cryptocurrency exchanges, has 48 million users, with an annual growth rate of over 200%.

01 Platform Foundation

Since its establishment in 2013, Gate has developed into an important player in the global cryptocurrency trading space. Today, Gate supports over 4,300 cryptocurrencies, offering users a full range of services from spot trading to derivatives.

Platform security has always been a top priority for Gate. They have implemented multiple measures such as multi-factor authentication, cold storage of assets, and regular security audits. Notably, Gate was one of the earliest platforms to introduce “100% reserve proof.”

In the latest transparency report, Gate reported reserves of $9.478 billion, with a total reserve ratio of 125%, meaning it holds assets far exceeding the amount needed to cover liabilities.

This commitment to security and transparency provides a solid foundation for all trading activities—including ETF and contract trading.

02 ETF Trading Features

Gate’s ETF (Exchange-Traded Fund) products, especially its leveraged tokens, offer a simplified solution for users seeking leveraged exposure while reducing complexity.

These tokens automatically rebalance to maintain a fixed leverage ratio (such as 3x long or short).

Similar to traditional ETFs, Gate’s ETF products allow users to gain leveraged exposure without directly managing collateral or facing liquidation risks. Users can buy or sell these leveraged tokens directly on the spot market, just like trading regular assets.

The core advantage of these products is simplified operation and reduced complexity. For ordinary users who lack the time or expertise to manage leveraged positions, this is an attractive option.

03 Contract Trading Explained

Unlike ETFs, contract trading is a form of derivatives trading where users bet on the price movement of assets by buying or selling contracts, without directly holding the assets themselves. Gate’s contract trading supports up to 100x leverage, but high leverage also means high risk.

Gate offers two main types of contracts: perpetual contracts and delivery contracts. Perpetual contracts have no fixed expiration date, allowing users to hold positions indefinitely until they choose to close; delivery contracts have fixed settlement dates.

For risk management, Gate has implemented various mechanisms. The platform uses a ladder-style liquidation mechanism: when a user triggers liquidation, if the risk limit is high, the platform will not fully liquidate the entire position but will prioritize partial liquidation.

Gate also has a risk reserve mechanism, drawing a portion of its profits to cover potential losses during extreme market conditions.

04 Product Comparison and Selection Guide

ETF and contract trading differ significantly across multiple dimensions. The table below summarizes their main features:

Choosing between these products mainly depends on your investment goals, risk tolerance, and available time. If you are new to cryptocurrency investing or lack time to monitor markets, ETF (especially leveraged tokens) might be more suitable.

For users with some trading experience, willing to accept higher risks, and interested in learning and monitoring markets, contract trading offers greater flexibility and potential returns.

05 Safety Tips for Beginners

Whether you choose ETF or contract trading, risk management is crucial. Here are some key recommendations for users new to these products:

Start small and practice with Gate’s demo account. This feature allows users to experience risk-free trading with virtual funds, helping to learn the interface and risk management without risking real money.

Deeply understand the product mechanisms. For example, in contract trading, understanding the difference between “cross margin” and “isolated margin” is important. Cross margin means all positions share margin, while isolated margin makes each position’s margin independent.

Never invest more than you can afford to lose. Cryptocurrency markets are highly volatile, and even seemingly “safe” ETF products can incur losses during major market swings.

Gate’s “Easy Buy/Sell” feature is a good starting point for beginners. Designed for ease of use, it allows users to instantly purchase cryptocurrencies using various payment methods.

Future Outlook

In the evening, a user who just completed their first Gate ETF investment watches the steady growth of their account’s profit curve, while a seasoned trader in the contract market uses precise timing to achieve substantial returns.

As the cryptocurrency market fluctuates around the clock, the two tools offered by Gate are like two sides of a coin: one is structured, simplified investing (ETF), and the other is flexible, opportunity-rich trading (contract trading).

Behind these two products are Gate’s multi-billion-dollar “Security and Legal Fund” and its global compliance layout, which ensure that investors with different needs can find their entry point into the crypto world.