To profit from the exchange of virtual assets, investors use various tools. One of them is futures on Bitcoin. It allows traders to conduct transactions without owning a coin. It is an excellent option for those who want to earn income from expensive assets without buying them.
First, you need to figure out what is future trading in crypto. It is trading with a particular contract. The seller and buyer agree that Bitcoin will be worth a certain amount on a specific day. When that date arrives, they will have to pay off. Thus, cryptocurrency futures allow you to receive income from changes in the market.
How to trade cryptocurrency futures
It is essential not only to understand what is future trading in crypto but also to understand how to trade them. First of all, you need to decide on a strategy. It may be:
- long
- short
- indefinite
The first option most often assumes that the asset’s value will go up after a relatively long period. With short positions, futures on Bitcoin are counting on a fall in value. The main advantage of this tool is that it can be used in both bear and bull markets.
With perpetual cryptocurrency futures, users do not set an expiration date. Trading occurs continuously, and the investor receives a profit from the bet.
The rate is a mandatory element of every futures contract. It is paid according to the difference indicated and the asset’s actual value. Best crypto futures exchanges offer investors relatively high rates, which allows them to receive substantial amounts.
You should not use the entire budget for one contract. Proper division of funds will help to get the maximum benefit.
Where to trade cryptocurrency futures
Many services offer to make a profit using contracts. We recommend using the benefits of the WhiteBIT platform. It is one of the largest European exchanges, which guarantees users fast payouts, funds protection, and personal information. In addition, the site has a guide on how to invest in Bitcoin futures, which will help you deal with all the subtleties.
The Bitcoin futures trading scheme is approximately the same on all platforms. You only need:
- open the appropriate tab with futures;
- choose to buy Bitcoin;
- specify the type of contract, asset value, and leverage;
- buy futures.
A future trading allows investors to hedge their savings against market volatility. The tool can be used around the clock. At the same time, there is no need to monitor the rate of cryptocurrencies constantly. Futures trading allows you to diversify your cryptocurrency portfolio even with a low budget.
Conclusion
Cryptocurrency futures trading offers a versatile and strategic approach for investors to profit from the dynamic virtual asset market. By engaging in futures contracts, individuals can capitalize on price fluctuations without owning the underlying assets, making it an attractive option for both bullish and bearish market conditions. The choice between long, short, or perpetual contracts provides a range of strategies to suit different investment goals. Platforms like WhiteBIT offer a secure and user-friendly environment for trading, ensuring quick payouts and safeguarding personal information. Overall, futures trading empowers investors to navigate market volatility, diversify portfolios, and potentially enhance their financial outcomes.
