Why Might a Trader Choose an Inverse Perpetual Contract despite the Added Currency Risk?

A trader might choose an inverse contract if they are already holding the base asset, like BTC, and want to use it directly as collateral without selling it. This allows them to hedge their existing holdings or gain exposure to the asset's price movements.

Furthermore, they can earn more of the base asset if the trade is profitable, which is desirable for long-term holders of the cryptocurrency.