Crypto futures is a popular tool on major cryptocurrency platforms that are widely used by advanced traders and investors capable of in-depth market research and price forecasting. The point is predicting the future value of a digital asset and “betting” on the chosen scenario, officially documenting the agreement on a cryptocurrency exchange that allows for futures contracts.
How to trade crypto futures? So you conclude a deal where you claim the value of the asset and the day when you owe to purchase or sell it. There are two options:
- You believe that the price will grow, so you claim a higher value in the contract, and if the market really grows, you sell your holdings and make a profit on the growing price on the day stated in the contract.
- You think the value will drop. So you sell out your holdings and wait until the contract’s expiration date comes. If the market really drops to the level you stated in the agreement, you buy back the coins at a reduced value; thus, you still hold crypto and generate income by selling and repurchasing it.
Indeed, this trading tool is not for a novice trader. It is too complex and requires thorough market research and analysis of technical and fundamental aspects to predict value fluctuations in the future.
Platforms for Crypto Futures Trading
Here are some common exchanges that enable futures trading:
- WhiteBIT
- ByBit
- Kraken
- FTX.
Again, since this trading method is incredibly complex and risky, we recommend starting with something simple. However, if your purpose is to learn futures and practice it, welcome to the WhiteBIT exchange. It allows for using demo tokens, which you cannot lose or earn.
They are created exclusively for practicing and polishing trading strategies before a trader goes to the real market. Once you comprehend futures trading, you can try it with real money on the WhiteBIT exchange. Read the conditions carefully and start with small amounts of money to protect yourself from financial losses.
