Trading crypto has become relatively popular among crypto holders. Since digital assets have high price volatility, it opens many opportunities to earn money on those price changes. Some trading strategies imply holding assets for the long term, and when their rate skyrockets, selling them. Other strategies require placing many orders daily, buying and selling cryptos, and receiving returns in small portions.
There are many efficient instruments for trading, as well as trading bots that help traders keep track of the market changes and open positions on time. Large and credible crypto platforms offer loads of convenient tools for their users, one of which is crypto futures. Let’s take a closer look at futures trading in this article.
When trading futures, you, in fact, conclude a contract for buying a crypto asset on some exact date in the future and at a pre-agreed price. Of course, such a crypto strategy requires good skills in forecasting future assets price. For it, a trader must know how the market works and how it may affect the asset’s price.
Futures trading allows receiving gains even when the market is moving down. That means, if you are confident that the assets rate will drop in the future, you make a futures contract with the lower rate fixed in it. If your forecast is correct, you make a profit on the date when the contract term expires. When you forecast the dropping price, it is called “to go short”; if you expect the rate will skyrocket, you “go long”.
The best platforms for futures trading:
Leverage and liquidity are the key things in futures trading. When trading futures, you actually don’t necessarily buy assets themselves, but you claim the position of some number of coins at the pre-agreed price in the future. In this case, you forecast the price changes and can claim it will increase, for example, 10, 20, or 50 times. It is called “leverage”.
Liquidity is an important indicator for an asset you trade. For example, if you pick BTC for futures trading, you have more chances to succeed because Bitcoin has high liquidity – it is always in demand, and people buy it at an upward and downward market trend.
The crypto market is changeable, adding numerous chances to multiply your investment portfolio as well as risks of losing everything. So you must be a really experienced trader for futures trading. There is an option for you to receive valuable skills in crypto futures trading.
Knowledge of the market is not enough for successful trading. The WhiteBIT exchange allows practising futures trading using a demo account. Since this type of trading is rather complex, some training would be useful before you risk your own money. In demo trading, you do not deposit your own funds, but you work with coins that were specially created for your practice. You can try different leverages and see how it works, and find out all the pitfalls of trading crypto futures. Then, when trading with your real money, you will feel more confident and will be able to forecast possible scenarios of your trading strategy.
The platform offers fintech futures, which means futures on buying tokens if fintech companies.
Also, WhiteBIT offers the lowest fee for using trading leverage, a significant liquidity pool for large trades, and many trading pairs for futures trading.
The WhiteBIT platform added the feature of perpetual futures contracts. Such contracts do not imply end dates. It is possible to achieve this thanks to the funding mechanism of the platform. It allows keeping prices in futures contracts closer to spot prices.