Crypto futures is a popular financial tool offered on large crypto platforms. This is an advanced instrument allowing traders to speculate on crypto asset rates and hedge risks. The main idea of futures trading is quality price prediction and “betting” on future coin rates.
To
trade crypto futures, you need to conduct thorough research:
- Analyze crypto charts and find out all the possible information about past price changes and indicators, patterns that may repeat in the future, etc.
- External factors such as the global economy, inflation, interest rates, etc., which can also impact the crypto market.
- Keep track of news and updates from the industry because media coverage plays a crucial role in the formation of crypto prices.
The research helps a trader evaluate the present market situation and have a basis for forecasting its further movement.
So the trader gets a vision of the future asset’s rate and opens one of these positions:
- Long - is opened when the trader awaits the market growth and wants o sell coins at a higher price.
- Short - is opened when the trader wants to protect his capital from the risk when the market drops. So one sells coins at a higher price to repurchase them at a lower rate when the downtrend starts.
Both versions are enunciated in a futures agreement where the asset’s price and the date are written.
What Crypto Futures Trading Platform to Choose?
There are many futures markets today. We recommend picking among the most reputable platforms, for instance, ByBit, Binance, WhiteBIT, BitMEX, etc. These platforms ensure high protection for clients. The most convenient exchange for crypto futures trading is WhiteBIT. It allows traders to use demo accounts to practice different leverage and understand how futures work. Demo trading will help you determine your trading personality and methodology, evaluate your risk tolerance, and find the best suitable trading parameters.
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