Futures is a financial instrument that has been existing for hundreds of years and used for trading different commodities such as gold, silver, grain, had, oil, etc. Those are valuable commodities and stocks. With the development of the crypto industry, advanced trading options started to emerge, and one of them is crypto futures.
Not all crypto platforms allow for this financial tool. In this article, we will tell you about the essence of futures and give some worthy examples of exchanges where you can trade crypto futures.
What Does Futures Trading Mean?
From the name, it becomes clear that this trading tool is connected with the future price of digital assets. The essence of this trading method is predicting the future value of coins and betting on them. This trading method means you may make money on both upward and downward markers. The main thing here is to be able to forecast price changes. Of course, successful futures trading requires in-depth knowledge of the market and the ability to analyze crypto charts and external factors that may impact crypto value. It is a comprehensive work, which is the reason why futures are the option for advanced traders.
When you get into futures trading, you do not necessarily buy this or that crypto right away. Instead, you buy crypto futures contracts where you claim the future value of an asset and the day when you are obliged to fulfill the agreement. The agreement can be:
- Buying coins at a lower price (you go short)
- Sell coins at a higher value (long).
So when you think that, for example, the BTC rate will drop at the end of the next month, you make an agreement to buy BTC and claim the price you think the asset will reach by the predetermined day. If the price really drops, you buy coins.
By the way, Bitcoin futures are the most traded in the market, for Bitcoin is the leading digital coin with the biggest trade volume and market cap exceeding $326 billion. That means this asset is less volatile than others, and it is always in demand. It is recommended to pick such established crypto assets for futures trading.
What is the Best Crypto Exchange for Futures Trading?
Here are the most reliable platforms for this type of crypto futures trading:
ByBit
Вinance Futures
eToro
WhiteBIT
WhiteBIT is one of the best crypto futures platforms, for it charges lower fees for futures trading and allows users to practice this advanced type of trading using a demo account. You can pick the different sizes of leverage and see how it works with demo tokens. The exchange provides high liquidity for those large traders who use large sums.
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