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Bitcoins Futures Trading

Futures trading is a financial instrument often used by advanced investors. Crypto futures trading involves two participants “betting” on the future coin’s price while making a contract. One of them thinks that the asset’s value will grow, and another one expects the opposite scenario. Both establish the price and the date when their agreement must be settled. On the day when the contract expires, the parties have to fulfill their agreements.

When picking an asset for crypto futures trading, consider the most popular assets, for it is easier to forecast their price movements and to find a lot of information on previous rate fluctuations. Thus, you can analyze the asset’s price trends, find market patterns, conduct tech analysis, and make a weighted decision on further rate movements.

Bitcoin futures were the first derivative contracts made with cryptocurrencies. Pairs with BTC still remain the most popular because Bitcoin is always in demand.

Some widespread futures trading strategies:

  • pullback;
  • breakout;
  • long/short;
  • spread;
  • buyer and seller interest;
  • counter-trend.

Where to Practice Futures on Bitcoin?

It is recommended to use only reliable and credible crypto exchanges or platforms created especially for crypto futures trading. This financial tool is highly risky, so you need a reputable platform to work with. An example can be the WhiteBIT crypto exchange, which is the biggest service for working with digital money in Europe. The platform supports popular pairs for futures trading, including popular BTC, ETH, SOL, etc., and gradually adds more crypto assets to this option.

The service also offers perpetual contracts. That means there is no expiration date for the agreement between the two parties, so they do not necessarily have to purchase or sell assets when the date comes. Instead, depending on their positions and the real price movements, the parties pay each other, while the funding is provided by the exchange reserves (liquidity).

Also, WhiteBIT enables demo trading, so people who wish to know how crypto futures trading works can try it for free without the risk of losing funds. Tokens used in demo trading can’t be cashed out or deposited.

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