How to Start Crypto Futures Trading?

How to Start Crypto Futures Trading

By trading cryptocurrencies, savvy investors can make huge sums of money in a short time as well as in the long run. Governments have no control over crypto assets, and their prices can rise and fall independently of government decisions and central bank regulations. The high volatility of digital currencies stimulates the evolution of trading. It has facilitated the emergence of numerous trading platforms that make it possible to make money with sophisticated trading instruments. For example, the largest crypto exchange in Europe, WhiteBIT, offers a number of financial instruments for making a profit in the crypto market:

  • trading crypto futures;
  • staking coins;
  • trading with margin;
  • using the leverage of different sizes;
  • p2p exchange;
  • DEX;
  • etc.

Today we will discuss how to trade crypto futures. This is one of the most challenging type of trading, which requires a lot of attention, knowledge, and practice. We will answer the questions of how does crypto futures work and where to practice it.

How to Trade Crypto Futures?

Futures is not a new word in the financial market – they are often used for such commodities as gas, oil, precious metals, etc. The essence is to “bet” on the future asset’s value. The parties conclude a contract where all the deal conditions are indicated – value, date, etc. 

There are options: go long or short. Long stands for increasing market and a trader’s plans to sell his holdings when the contract’s date expires. Short means the downtrend and buying digital assets at a reduced value.

For a better understanding of crypto futures trading, welcome to the WhiteBIT crypto exchange. It offers a demo account where users can practice all possible strategies. An important detail in crypto futures is leverage. That is borrowed funds to multiply your income. One should be very careful using leverage because the higher figure you take, the bigger risk you face. You are welcome to practice different leverage sizes on the WhiteBIT demo account.

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