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What Are Crypto Futures? A Quick Guide to Get Started

Cryptocurrency futures have been in the market for a few years now (from the end of 2017) despite the fact that futures have existed for almost 100 years now. Since the introduction of crypto futures, different exchanges have shown great interest. Futures is the new norm for crypto investment.

Many people often confuse options with futures. Therefore, traders need to acquire the necessary skills in futures trading to carry out any crypto transactions.

Understanding crypto futures

Crypto futures offer opportunities to traders to acquire digital currencies exposure without possessing the actual cryptocurrency. It works similar to futures contracts or stock indices that involve commodities, where investors take risks based on an asset‘s future value.

Specific cryptocurrency like Ethereum or Bitcoin is the basis for the value of crypto futures contracts. Note that there is no possession of digital assets during futures trading. The trader must use cash when the futures contract expires instead of dealing with crypto physically.

The main element of crypto futures is to protect against extreme cryptocurrencies volatility and adverse price changes. The high digital currencies volatility makes traders buy assets when the price is low and sell them when they hike.

You can trade crypto futures on platforms like Binance futures, and trading is every day. Blockchain makes futures trading on derivative trading platforms to be safer and secures all the time. Also, check out about Bitcoin Association.

Also Read: How to make your cryptocurrency transactions untraceable?

The working principle of crypto futures

Some traders are wise enough to take advantage of the available unique and diverse challenges (negative publicity and high volatility) digital assets face.

The most important thing to remember when trading crypto futures is that you will be taking risks on the price change without dealing with the actual crypto.

However, you don’t have to worry yourself since there is a lot of guidance from experts on crypto futures. One of the greatest strategists and market gurus you can trust is Dan Hollings. Take part in Dan Hollings crypto course to learn more about investment strategies.

The right way to trade crypto futures contracts

It is very simple to trade futures contracts on Binance. It only takes a few minutes to trade futures contracts if you are a Binance user. To begin:

  1. Open a crypto futures trading account
  2. Deposit funds in BUSD, Binance supported cryptocurrencies or USDT
  3. Choose the preferred futures contract
  4. Choose the right leverage based on your futures contract
  5. Plane different orders from the available ones on Binance futures

Also Read: Join the AMA-Session with S-Wallet Founder and get $10,000 worth of rewards


Derivatives, like crypto futures, are important because they allow traders to estimate future asset prices. Today, many exchangers allow crypto futures trading. The only way to win big in this business is to be well-conversant with futures exchange basics.

You can enjoy futures trading if you have the right risk management skills and proper knowledge to avoid losses. Therefore, it is advisable to do your due diligence and strategise before trading crypto futures. Also, learn the main benefits of trading futures and the potential risks to take.

About the Author

 Crypto Futures

Joyce Kimber is an entrepreneurial writer. She always finds new ways to improve her work performance and quality. Connect with Joyce on Twitter  @joyce_kimber91

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