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Best Crypto Exchange for Futures Trading

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First of all, let’s find out what crypto futures mean. They are derivative contracts concluded between two participants. They make an agreement on purchasing or selling a digital asset on a decided date and pre-determined price. In their essence, crypto futures are speculations. The parties of derivative contracts bet on the rate of the underlying asset in the future.

There are two options for traders:

  • go long (the party anticipates the coin’s price increase);
  • go short (the party hopes the price will drop).

Those opening long positions decide to purchase the asset at a pre-agreed price, while those going short owe to sell the asset at the same pre-agreed rate. Notice that the contract can be sold to other people, which does not change its sense in no way. 

Some large crypto platforms allow using leverage in crypto futures. It is when a user borrows money from an exchange to enter a contract with a more considerable amount. It allows the trader to enter more prominent positions without having to fund those positions on his own. Using leverage is risky, so it is suitable only for progressive traders. If the asset’s rate jumps against the trader’s forecast (predicted rate), a maintenance margin helps keep the trader’s positions open. The trader’s position will be liquidated if the breach is too big. So one should be careful using leverage.

Best Crypto Futures Platforms

Here are the most often-used crypto platforms that allow for crypto futures trading with their leverage thresholds and the number of pairs available in brackets:

  • ByBit (100X leverage and over 400 crypto assets);
  • WhiteBIT (20X leverage and five crypto pairs);
  • Binance (25X leverage and over 600 pairs);
  • FTX (20X and over 200 pairs);
  • eToro (10X leverage and 20 pairs).
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As you can see, different platforms offer various trading conditions, so it is hard to pick the best crypto futures exchange. However, you should choose the one that suits you best and don’t forget to start trading with a small amount using small leverage. You can also practice crypto futures trading using a demo account on WhiteBIT.

FAQ:

1. What is a crypto exchange?

A crypto exchange is a platform that allows users to trade cryptocurrencies for other assets, such as fiat currency or other digital currencies.

2. How do I choose the right crypto exchange?

When choosing a crypto exchange, consider factors such as security measures, fees, supported cryptocurrencies, trading volume, user interface, and customer support.

3. Are crypto exchanges safe?

While security measures vary among exchanges, reputable platforms implement measures such as two-factor authentication, cold storage for funds, and regular security audits to protect users’ assets.

4. What are the fees associated with using a crypto exchange?

Crypto exchanges typically charge fees for trading, depositing, and withdrawing funds. These fees can vary widely among exchanges, so it’s important to understand the fee structure of the exchange you plan to use.

5. Can I store my cryptocurrencies on a crypto exchange?

While some users choose to store their cryptocurrencies on exchanges for convenience, it’s generally recommended to use a secure wallet for long-term storage.

 

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