Futures derivatives is a common tool used by traders all around the world. In conventional markets, such goods as oil, precious metals, and gas are the subject of futures deals. Futures on crypto are no less popular. However, they are much riskier than futures with traditional commodities. It is explained by the high market volatility and difficulty in predicting the future price of assets correctly. That is why only advanced traders use this financial instrument.
What is futures crypto? Let’s see.
Futures on Crypto
The crucial difference between futures and spot trading is the fact of buying crypto assets. If in spot trading, traders buy assets immediately, then in futures trading, they buy crypto futures agreements but do not receive coins right away. The contract includes the day when traders have to fulfill their obligations and the value of the asset. To forecast the future value of the asset, traders conduct fundamental and technical analyses. They include the assessment of the asset’s price chart and historical indicators, patterns, etc. Also, the research includes an analysis of the situation in the global economy and factors that have an impact on the crypto field as well as the news background.
What is the Best Futures Trading Platform Crypto?
It is crucial to work with a reliable and reputable crypto exchange. Check out the WhiteBIT platforms. It offers:
- clean and transparent interface;
- convenient tools;
- customer support;
- up to 20X leverage;
- perpetual futures;
- demo trading.
Beginner traders will especially appreciate the demo trading option, for they may practice futures trading and see how it works, apply different leverage (borrowed funds) and see how it affects the result.
Perpetual futures are those with no end date, which means traders do not have to sell or buy assets on the day stated in the agreement but pay the fee depending on their position and the market conditions.