Parents, What is Special about Futures Crypto Trading?

Trading is a popular way of making money from the growing and declining market. Futures trading is the instrument allowing traders to earn when the market is going down. Such goods as grain, precious metals, oil, and other commodities become subjects for this type of trading. Crypto is not an exception. However, given the high volatility of digital assets, futures crypto trading appears to be much riskier compared with futures in traditional markets.

What are futures in crypto? Let’s find out the answer to this question today.

What is Futures Trading Crypto?

Futures is the tool allowing one to speculate on assets’ price by guessing or, better to say, predicting values. To suggest the future crypto rate, traders do the following investigations:

• They learn crypto charts and find out the highest and lowers marks on them, see how the price changed and why, find historical indicators and patterns that may repeat in the future, and become the basis for the forecast.
• They analyze the situation with the world economy, inflation, interest rates, etc. It helps to estimate the overall investors’ mood and expectations.

In addition, research helps to evaluate future market movement. So when a trader concludes about the future asset’s price, one starts to trade crypto futures, which may be in two options:

• the price will drop (so the trader is eager to buy coins at a reduced price);
• the price will increase (so the trader plans to sell his coins at a higher rate).

The agreement on futures included the price and the day.

Special benefits of futures crypto trading:

• Traders may use leverage (borrowed assets from an exchange) to open e more profitable futures position. It allows for multiple incomes but also increases risks.
• Leverage may be of different ratios, so by picking it, the trader controls the risks one takes.
• Futures allow speculating on coins prices.
• Traders make money even when the market drops if they predict the decline correctly.

You can use the WhiteBIT exchange to try this financial tool. This platform allows up to 20X leverage and demo trading options for you to practice this advanced tool. WhietBIT also has endless futures options, meaning agreements with no expiration date. In that case, asset rates are kept closer to the spot market, and the financing comes from the WhiteBIT funding mechanism.

What else would you add?

Featured Image from Whitebit.com.