Trading in cryptocurrencies is known as one of the most profitable earning options that allow for making significant profits in the shortest terms. However, the risks traders face in this market are also increased compared to traditional markets.
Crypto platforms offer many different tools for trading crypto. The most advanced of them are crypto futures.
Trading Crypto Futures: Main Things to Know
This financial tool is widespread in traditional markets. The essence is in speculation on an asset’s value and betting on its growth or drop, giving specific timeframes. It works similarly in the crypto market but takes much more work to analyze and predict asset values because cryptos are incredibly unstable. The most widespread in this case are BTC futures contracts.
Since Bitcoin is the asset with the higher liquidity level and market cap, it is the most stable (if we can apply this word when speaking about digital assets), and it is easier to foresee its further price movements.
The idea of futures is to bet on the future value of crypto coins and enter into an agreement to sell your assets or buy new coins when the contract’s date comes.
For efficient futures trading, you should make a thorough analysis:
- Research the asset you trade and its price charts, find out historical indicators and patterns, bases on which you can predict the future value;
- See what’s the situation in the world and what factors may become a reason for the market’s drop or rise in the near future.
Where to Trade Futures on Crypto?
It is also important to select a reliable crypto platform for trading. The best trading crypto futures of February 2023 are:
- ByBIT
- Binance
- OKX Futures
- WhiteBIT
- BitMEX.
Futures on Bitcoin are available on all these services but at different conditions. Every exchange allows other leverage (borrowed funds) for futures trading, charges different commissions, and imposes different penalties if your futures strategy does not work and you lose borrowed funds.
The WhiteBIT platform allows perpetual agreements for this tool – they have no expiration date, so you do not necessarily have to close your contract if the market changes not the way you expected. Instead, you pay penalties and keep on your position. It is possible due to the WhiteBIT funding system. Read more about this option on the WhiteBIT blog.
