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Crypto Terms:  Letter S

What is Software Wallet?

Meaning:
Software Wallet - a type of application whose primary function is to create a virtual space for holding, sending, and receiving cryptocurrencies.
easy
2 minutes

Let's find out Software Wallet meaning, definition in crypto, what is Software Wallet, and all other detailed facts.

A software wallet, also referred to as a wallet app, is a program that gives access to the users' owned cryptocurrencies. It can be installed on any device whether it’s a phone, a tablet, or a computer.

Software wallets enable easy interaction between a user and a blockchain by facilitating graphical user interfaces (GUIs). This is done since cryptocurrencies are stored on-chain.

There are three types of software wallets: mobile, desktop, and web.

The most well-known software wallets include Guarda Wallet, Electrum Bitcoin Wallet, Exodus Wallet, and Coinbase Wallet.

It’s important to note that software wallets are encrypted. This means that in order to be granted access, one has to know the password of the software wallet.

Generally speaking, software wallets are considered to be non-custodial which refers to the absence of a central authority that has custody of a cryptocurrency stored within a specific wallet. The end-user has the ability to transfer cryptocurrency held in a software wallet. They can do this through private keys.

Typically, there is a link between software wallets and cryptocurrency exchanges. Moreover, there are software wallets that are connected to exchanges where cryptocurrency trading is facilitated by AMMs or atomic swaps.

What are the main advantages of software wallets?

  • Ease of access. Anyone can have a software wallet since it comes at no cost. This is a substantial advantage over hardware wallets;
  • User-friendly. Software wallets are accessible via mobile phones, tablets, and computers;
  • Convenience. Its users are able to easily participate in exchange by buying and selling cryptocurrencies. Users can also send and receive cryptocurrencies;
  • Multi-chain support. It supports multi-coin, also known as multi-chain, wallets.
smart contracts<\/strong><\/a> on the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum blockchain. Even though in 2014 it was proposed by Polkadot founder <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//who-is-gavin-wood/">Gavin Woods<\/strong><\/a>, Solidity was developed by Ethereum and its project team. This programming language is <strong>influenced<\/strong> by other popular programming languages such as <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-javascript/">JavaScript, <a href=https://www.bitdegree.org/"https:////en.wikipedia.org//wiki//Python_(programming_language)/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>Python<\/strong><\/a>, and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-c-plus-plus/">C++./n

The <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-ethereum-virtual-machine-evm/">Ethereum Virtual Machine (EVM)<\/strong><\/strong><\/a>, which serves as an abstraction layer between the executing code and the execution machine, interacts with the Solidity programming language. Though since the EVM does not directly compile low-level machine instructions called <a href=https://www.bitdegree.org/"https:////en.wikipedia.org//wiki//Opcode/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>opcodes<\/strong><\/a>, Solidity must be compiled to them manually.<\/p>\n<p>This programming language is <strong>simple to switch to and use<\/strong>, especially for individuals with prior programming experience. Solidity is statically typed, which means it checks the program's source code for type mistakes and syntactic difficulties.&nbsp;<\/p>\n<p>It supports <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-software-library/">libraries, user-defined complex objects, and <strong>inheritance<\/strong>. In addition, developers are able to design new forms of complex and automated financial, gaming, auction-based, management, and other applications using Solidity.<\/p>\n<p>Though just like any programming language, <strong>Solidity has some issues<\/strong>. To begin with, since blockchains are <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-immutable/">immutable, a smart contract that has been deployed cannot be removed or modified in any way. This means that every single line of the Solidity code must be flawless, or it is at risk of being <strong>hacked or exploited<\/strong>.&nbsp;Besides, the design of Solidity needs to be updated to meet the needs of today&rsquo;s requirements since it was designed during the time when Ethereum wasn&rsquo;t deployed.<\/p>","definition":"a programming language that is mostly used for developing smart contracts on the Ethereum blockchain.","status":"published","meta_title":"What is Solidity? Definition & Meaning | Crypto Wiki","meta_description":"Solidity meaning: Solidity - a programming language that is mostly used for developing smart contracts on the Ethereum blockchain.","meta_keywords":null}" :prev-section="{"id":736,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Solution_stack","level":"medium","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-12-17T12:27:43.000000Z","slug":"what-is-software-stack","title":"What is Software Stack?","section":"S","keyword":"Software Stack","content":"<p><strong>A Software Stack<\/strong>, also known as a solution stack, defines the collection of independent components that engineers utilize in software development.&nbsp;<\/p>\n<p>Let&rsquo;s have a look at the most basic example. <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-operating-system-os/">Operating systems (OS)<\/strong><\/a> within computers enable internet browsers to send and receive information in order to function properly. Furthermore, that same internet browser won&rsquo;t be able to load websites without the web server.<\/p>\n<p>Besides, you&rsquo;re reading this because you have access to the internet. To browse the internet, you opened up a web browser such as Google Chrome or Apple Safari. These web browsers transfer information through the Internet Protocol (IP). The transmission control protocol (TCP) that&rsquo;s within the IP suite continues to send over the information. The latter is within the Network Access Layer which is within the Ethernet. Every layer collaborates in order to perform its function. In this case, it&rsquo;s to open the internet browser and load content.&nbsp;<\/p>\n<p>This means that each and every layer is connected and can easily send messages to each other.&nbsp;<\/p>\n<p>There are a lot of different software stacks on the market today.&nbsp;<\/p>\n<p>The most popular software development solution at the moment is <strong>the<\/strong> MEAN Stack. Its name is derived from MongoDB, Express, AngularJS, and Node.js - the main open-source technologies that this software stack utilizes.&nbsp;<\/p>\n<p>A similar solution is the MERN Stack. It stands for MongoDB, Express, React, and Node.js. This software stack trades AngularJS for React. The development of applications is said to be much smoother with the MERN stack.<\/p>\n<p>Another well-known option is the LAMP Stack which facilitates Linux, Apache, MySQL, and PHP. All of these <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-open-source/">open-source technologies can be considered classics as they have been around for a long time. Over 25% of all websites have used LAMP.&nbsp;<\/p>\n<p>Now, if you&rsquo;re looking for the term software stack, you probably bumped into a similar term - a technology stack aka tech stack. The main area where the software stack and tech stack differ is their software components.<\/p>\n<p>A tech stack has a much more limited number of components than a software stack. Generally, it includes the hardware, middleware, and an operating system (OS). While <strong>the software stack has a much broader list including databases, protocols, runtime environments, various programming languages, and many other components<\/strong>.&nbsp;<\/p>\n<p>Essentially, a tech stack utilizes its technologies to build something for a company. For example, to develop new products or provide additional services.<\/p>","definition":"is a set of layers that work together during software development.","status":"published","meta_title":"What is Software Stack? Definition & Meaning | Crypto Wiki","meta_description":"Software Stack meaning: Software Stack - is a set of layers that work together during software development.","meta_keywords":null}" :model="{"id":930,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Cryptocurrency_wallet","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:01.000000Z","updated_at":"2023-12-17T10:19:36.000000Z","slug":"what-is-software-wallet","title":"What is Software Wallet?","section":"S","keyword":"Software Wallet","content":"<p><strong>A software wallet, also referred to as a wallet app, is a program that gives access to the users' owned cryptocurrencies<\/strong>. It can be installed on any device whether it&rsquo;s a phone, a tablet, or a computer.<\/p>\n<p>Software wallets enable easy interaction between a user and a blockchain by facilitating graphical user interfaces (GUIs). This is done since cryptocurrencies are stored on-chain.<\/p>\n<p>There are three types of software wallets: <strong>mobile, desktop, and web<\/strong>.<\/p>\n<p>The most well-known software wallets include Guarda Wallet, Electrum Bitcoin Wallet, Exodus Wallet, and Coinbase Wallet.<\/p>\n<p>It&rsquo;s important to note that software wallets are encrypted. This means that in order to be granted access, one has to know the password of the software wallet.<\/p>\n<p>Generally speaking, software wallets are considered to be non-custodial which refers to the absence of a central authority that has custody of a cryptocurrency stored within a specific wallet. The end-user has the ability to transfer cryptocurrency held in a software wallet. They can do this through <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-private-key-secret-key/">private keys<\/strong><\/a>.<\/p>\n<p>Typically, there is a link between software wallets and cryptocurrency exchanges. Moreover, there are software wallets that are connected to exchanges where cryptocurrency trading is facilitated by <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-automated-market-maker-amm/">AMMs or <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-atomic-swap/">atomic swaps<\/strong><\/a>.<\/p>\n<p>What are the main advantages of software wallets?<\/p>\n<ul>\n<li><strong>Ease of access.<\/strong> Anyone can have a software wallet since it comes at no cost. This is a substantial advantage over <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-hardware-wallet/">hardware wallets<\/strong><\/a>;<\/li>\n<li><strong>User-friendly. <\/strong>Software wallets are accessible via mobile phones, tablets, and computers;<\/li>\n<li><strong>Convenience.<\/strong> Its users are able to easily participate in exchange by buying and selling cryptocurrencies. Users can also send and receive cryptocurrencies;<\/li>\n<li><strong>Multi-chain support.<\/strong> It supports multi-coin, also known as multi-chain, wallets.<\/li>\n<\/ul>","definition":"a type of application whose primary function is to create a virtual space for holding, sending, and receiving cryptocurrencies.","status":"published","meta_title":"What is Software Wallet? Definition & Meaning | Crypto Wiki","meta_description":"Software Wallet meaning: Software Wallet - is a type of application whose primary function is to create a virtual space for holding, sending, and receiving cryptocurrencies.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master&rsquo;s degree on Economics, Politics &amp; Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US&rsquo; Western and Japan&rsquo;s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He&rsquo;s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain &amp; Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? The Pros & Cons","status":"published","modified_content":null},{"chapter_id":2,"order":4,"slug":"coin-vs-token","title":"Coin VS Token: How Do They Differ?","status":"published","modified_content":null},{"chapter_id":2,"order":5,"slug":"what-are-stablecoins","title":"What are Stablecoins, Altcoins & Wrapped Coins?","status":"published","modified_content":null},{"chapter_id":2,"order":6,"slug":"what-is-a-bitcoin","title":"Bitcoin: the Pioneer of the Crypto World","status":"published","modified_content":null},{"chapter_id":2,"order":7,"slug":"what-is-ethereum","title":"The Ultimate Blockchain for dApp Creation: Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":8,"slug":"what-is-cardano-in-crypto","title":"What is Cardano and What is It Used For?","status":"published","modified_content":null},{"chapter_id":2,"order":9,"slug":"what-is-shiba-inu-coin","title":"Shiba Inu: the Dogecoin Killer","status":"published","modified_content":null},{"chapter_id":2,"order":10,"slug":"what-is-solana-in-crypto","title":"Is Solana an Improved Version of Ethereum?","status":"published","modified_content":null},{"chapter_id":2,"order":11,"slug":"what-is-polkadot-in-crypto","title":"The Bridge Between Blockchains: Polkadot","status":"published","modified_content":null},{"chapter_id":2,"order":12,"slug":"what-is-polygon-in-crypto","title":"Polygon: the Essential Scaling Solution for Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":13,"slug":"what-is-luna-crypto","title":"The Bumpy Road of Terra (LUNA)","status":"published","modified_content":null},{"chapter_id":2,"order":14,"slug":"what-is-fantom-crypto","title":"Is Fantom (FTM) Yet Another Ethereum Killer?","status":"published","modified_content":null},{"chapter_id":2,"order":15,"slug":"what-is-aave-crypto","title":"Aave: Crypto Lending Trailblazer","status":"published","modified_content":null},{"chapter_id":2,"order":16,"slug":"what-is-algorand-crypto","title":"Did Algorand Truly Solve the Blockchain Trilemma?","status":"published","modified_content":null},{"chapter_id":2,"order":17,"slug":"what-is-olympus-dao","title":"Does Olympus DAO Have Anything to Do With Mythology?","status":"published","modified_content":null},{"chapter_id":2,"order":18,"slug":"what-is-avax","title":"Is Avalanche Network (AVAX) Rightfully Called the Future of DeFi?","status":"published","modified_content":null},{"chapter_id":2,"order":19,"slug":"what-is-monero-coin","title":"Monero: Where Cryptocurrency Meets Cryptography","status":"published","modified_content":null},{"chapter_id":2,"order":20,"slug":"what-is-ripple-xrp","title":"Is Ripple \"it\" When it Comes to Cross-Border Transactions?","status":"published","modified_content":null},{"chapter_id":2,"order":21,"slug":"practical-use-of-cryptocurrencies","title":"The Practical Use of Crypto","status":"published","modified_content":null}]},{"id":3,"title":"Crypto Exchanges","slug":"crypto-exchanges","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-exchanges.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-exchanges-101.jpg","rating":80,"sections":[{"chapter_id":3,"order":1,"slug":"how-do-cryptocurrency-exchanges-work","title":"How do Cryptocurrency Exchanges Work?","status":"published","modified_content":null},{"chapter_id":3,"order":2,"slug":"dex-vs-cex","title":"DEX VS CEX: Two Sides of the Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":3,"order":3,"slug":"crypto-day-trading","title":"Crypto Day Trading: The Difference Between Buying, Trading, and Swapping","status":"published","modified_content":null},{"chapter_id":3,"order":4,"slug":"kyc-crypto","title":"KYC & AML: The Key to Complying With Legal Industry Standards","status":"published","modified_content":null},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published","modified_content":null},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published","modified_content":null},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published","modified_content":null}]},{"id":4,"title":"Crypto Wallets","slug":"crypto-wallets","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens (NFTs)?","status":"published","modified_content":null},{"chapter_id":6,"order":1,"slug":"what-is-defi","title":"What is Decentralized Finance (DeFi)?","status":"published","modified_content":null},{"chapter_id":6,"order":2,"slug":"what-is-defi-2-0","title":"DeFi 2.0: The New Version of Decentralized Finance","status":"published","modified_content":null},{"chapter_id":6,"order":3,"slug":"what-are-dapps-in-crypto","title":"What Are dApps and How Do They Work?","status":"published","modified_content":null},{"chapter_id":6,"order":4,"slug":"defi-dapps","title":"Picking the Right dApps: Dos and Don'ts","status":"published","modified_content":null},{"chapter_id":6,"order":5,"slug":"what-is-web-3-0","title":"Web 3.0: The Future of the Internet","status":"published","modified_content":null},{"chapter_id":6,"order":6,"slug":"what-are-smart-contracts","title":"What is the Core Purpose of Smart Contracts?","status":"published","modified_content":null},{"chapter_id":6,"order":7,"slug":"what-is-a-dao-in-crypto","title":"The Notion of a Decentralized Autonomous Ogranization (DAO)","status":"published","modified_content":null},{"chapter_id":6,"order":8,"slug":"what-is-staking-in-crypto","title":"What is the Goal of Staking Crypto Assets?","status":"published","modified_content":null},{"chapter_id":6,"order":9,"slug":"what-is-liquidity-pool-in-crypto","title":"What is a Liquidity Pool and How Does It Work?","status":"published","modified_content":null},{"chapter_id":6,"order":10,"slug":"what-is-automated-market-maker","title":"Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":6,"order":11,"slug":"what-is-yield-farming-in-crypto","title":"The Main Yield Farming 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Cryptocurrencies?","status":"published","modified_content":null},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published","modified_content":null},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published","modified_content":null},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published","modified_content":null},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published","modified_content":null},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published","modified_content":null},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration 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