Throughout mankind’s timeline, many different types of currency have been utilized to exchange goods and services. From trading items in the early days to dependence on paper bills, coins, and shells now; money has constantly changed over time to keep up with human needs.
In recent times, the surge of digital technology and the internet has wrought a new kind of currency: cryptocurrency or crypto. Unlike traditional money, which is heavily regulated by governmental authorities and financial institutions, cryptocurrencies are decentralized and run on a peer-to-peer system that provides users with greater security, privacy, and freedom to transact finances.
Bitcoin, the first and most widely recognized crypto was launched in 2009. Since then, thousands of other cryptocurrencies have been created with their own established set of features and applications.
Cryptocurrencies, though a fresh innovation in the finance world, has already made a tremendous mark and are viewed by many as the currency of tomorrow. Nonetheless, these digital assets face several obstacles like regulatory obscurity, protection worries, and instability.
What is Crypto Futures: the Basics You Need to Know
For investors interested in profiting from the rapidly burgeoning world of cryptocurrencies, crypto trading, and futures are two of the most profitable methods to get involved.
Crypto trading involves taking advantage of the ever-fluctuating prices of digital assets and buying and selling them on exchanges to make a profit. You can manually handle your trades or you could opt for using automated bots that will perform transactions according to established parameters.
Crypto futures offer traders the capability to wager on the potential price of a cryptocurrency, without having to possess the tangible property. These contracts are commitments for either buying or selling an asset at a designated cost and date in the near future. As such, speculators can reap rewards from both increasing and decreasing rates of digital currencies – all depending on whether they choose long or short positions.
Crypto trading and futures provide investors with distinctive opportunities and perils, necessitating a thorough comprehension of the related technology as well as market forces. Predictably, these investing/trading markets will become increasingly essential in the financial world due to cryptos gaining popularity among mainstream audiences. Let’s see how do crypto futures work.
Crypto futures are an investment vehicle that enables speculators to wager on the potential direction of crypto prices, without having any actual ownership in the digital asset. Here is a quick overview of crypto futures:
- Futures contracts. Crypto futures agreements provide a unique opportunity for individuals to make contracts with each other, exchanging predetermined prices and quantities of digital currencies at some point in the future.
- Trading in futures frequently involves leverage, giving traders the ability to control a larger amount of crypto with only a small quantity of capital. However, leveraging can also heighten losses and should be done cautiously.
- Long and short positions. Futures traders have the option of initiating a long or short position on their contract. If they anticipate that crypto prices will rise, they should take a long stance; if conversely, they expect them to drop, then it is advised to take a short one.
- When it comes to futures contracts, there are two ways for settlement: through physical delivery of the underlying asset or by cash. Physical settlement is when the buyer receives the actual commodity or financial instrument in question while with cash settlement, payment is made at an agreed-upon price based on their equivalent value.
- Market dynamics. A host of elements including the supply and demand for crypto assets, market opinion, and regulatory advancements drive crypto futures pricing.
It’s essential to understand that futures trading can be intricate and bring with it a significant amount of risk. Before attempting this type of investment, traders should ensure they have an in-depth knowledge of the associated technologies, and market trends, as well as a solid risk management plan.
What is the Best Platform to Trade Crypto Futures?
There are some popular crypto exchanges with futures:
- ByBit
- Bitmex
- WhiteBIT
- Binance
- Huobi
- io
The best platform for crypto futures trading is WhiteBIT. Let’s see what advantages it offers for clients.
WhiteBIT
Looking to capitalize on cryptocurrency trading? WhiteBIT might be the perfect exchange for you among the best crypto futures exchanges. Boasting a selection of spot, margin, and futures trading options – all within an Estonian registered platform since 2018 – it’s no wonder that this crypto exchange has become one of the most sought-after destinations.
WhiteBIT’s futures trading platform is truly exceptional, offering traders a wide range of cryptocurrency contracts to choose from. Bitcoin, Ethereum, Litecoin, and Ripple are just a few among the many alternatives available on their market.
WhiteBIT boasts competitive trading fees for futures traders – just a 0.10% for maker fee and a 0.15% taker fee. Best of all, depositing or withdrawing crypto comes without any fees whatsoever; if you prefer fiat currency, several payment methods are available to choose from at no extra cost!
With this best platform to trade crypto futures, traders can take advantage of up to 125x leverage for futures trading. This means that you’re able to control a much larger amount of cryptocurrency with only a fraction of the capital it would otherwise require. However, keep in mind that heightened leverage also increases your potential losses, so exercise caution when investing.
WhiteBIT not only offers an array of trading tools and features, such as sophisticated charting, order types, and risk management instruments but also helps traders make decisions that make sense while controlling their positions with precision.
WhiteBIT’s futures trading offers traders low fees, plentiful markets to choose from, and sophisticated features, all of which make it an attractive option for crypto investors. But as with any other platform, it is vital that you carefully assess the risks before entering into a transaction on this exchange. Do your research and use due diligence when selecting a futures trading system.
Additionally, visit the WhiteBIT blog. Here you can discover a range of helpful articles, such as:
- Trading strategies. The blog is packed with engaging articles on trading strategies, from scalping to swing trading and trend following. These pieces offer a deep dive into the various approaches of successful traders and provide invaluable advice for maximizing your profits in the market.
- Market analysis. Keep your finger on the pulse of markets with WhiteBIT’s market analysis articles. From fundamental to technical analysis, our publications offer critical insights that empower traders and investors to make sound decisions in this turbulent climate. Stay informed with regularly published content on a wide range of topics.
- Risk management is a critical element of futures trading and the WhiteBIT blog offers numerous resources to help traders gain proficiency in this area. These articles feature advice on how to strategically manage risk, such as setting stop-loss orders and using appropriate position sizing methods. With these tips, you can be assured that your trades are well protected against any potential losses.
- Exchange news and updates. The blog is the perfect source for traders to stay informed on WhiteBIT’s cutting-edge features, upcoming events, and other relevant updates. If you’re looking to remain ahead of the curve, it’s a great place to keep up with all that’s going on at the WhiteBIT exchange.
- Educational content. The WhiteBIT blog is a go-to source for all things cryptocurrency, with educational content ranging from blockchain technology to cryptocurrency mining and more. With valuable insights into this ever-growing industry, the WhiteBIT blog has something for everyone interested in delving further into cryptocurrencies.
From novice traders to seasoned veterans, the WhiteBIT blog offers helpful and insightful content covering futures trading and additional facets of cryptocurrency trading. It’s an invaluable resource for anyone interested in the field.
WhiteBIT is the best platform for crypto futures trading for one more reason – demo trading options. It is a great way for users to practice trading with virtual funds in a simulated environment. The demo trading feature on WhiteBIT allows users to access all the same trading tools and features as the live trading platform, including advanced charting, order types, and risk management tools.
Conclusion
WhiteBIT offers a competitive and comprehensive futures trading platform for cryptocurrency traders. With a wide range of trading pairs, up to 20x leverage, and advanced trading tools, WhiteBIT provides traders with the necessary resources to make informed decisions and manage their positions effectively. Additionally, the WhiteBIT blog offers a wealth of helpful information on futures trading, including trading strategies, risk management, market analysis, and educational content. However, as with any trading platform, traders should exercise caution and conduct their due diligence before engaging in futures trading. Overall, WhiteBIT’s futures trading is a popular choice among cryptocurrency traders looking for a reliable and feature-rich trading platform.
