Futures trading

Cryptocurrency futures trading is a form of derivatives trading, where traders enter into a contract with the promise to buy or sell a digital currency at a specific price at a predetermined time in the future. Instead of trading spot, where the digital token is exchanged immediately, futures trading revolves around contracts that track the price of the cryptocurrency, allowing traders to speculate on price movements without owning the actual asset.

Cryptocurrency futures has been gaining traction due to its ability to offer larger returns through leverage, which means traders can hold more positions than their capital allows. It’s popular for hedging, speculating, and mitigating risk in the unpredictable crypto market.

Types of futures contracts

1. Perpetual futures: These contracts do not have an expiration date, allowing traders to hold positions indefinitely. They are popular among cryptocurrency traders due to their flexibility and continuous funding fees to maintain positions.

2. Fixed-term futures: These contracts expire on a certain future date, such as weekly, monthly, or quarterly futures contracts.

3. Inverted futures: The underlying asset (e.g., BTC) is used as the settlement currency instead of stablecoins.

Advantages of futures trading

• Leverage: Increases potential profits by allowing traders to control large positions with minimal capital.

• Shorting: Traders can profit when the cryptocurrency price is decreasing by establishing short positions.

• No ownership required: Traders can speculate on price movements without owning the actual cryptocurrency.

Risks of futures trading

• Volatility: Prices are highly volatile, increasing the risk of liquidation, especially when using high leverage.

• Complexity: Trading futures is a risky and complex task.

• Funding fees: Traders holding perpetual futures have to pay funding fees based on the market, which may diminish gains.

Intercambios de criptomonedas que admiten el comercio de futuros

• OKX (OKX is user-focused first and foremost. They relied on maximum convenience and speed of the exchange, and OKX does this very well. In addition, OKX has its own and very convenient decentralized wallet to store tokens securely.).

• Kucoin (Popular exchange, operating since 2017. In our opinion, Kucoin is the crypto exchange with the most user-friendly user interface we have ever seen.).

• CoinEx (The CoinEx cryptocurrency exchange was founded in Hong Kong in 2017. Today, it serves over 10 million users worldwide, which speaks to its reliability and popularity.).

• Bitmart (Founded in 2017, BitMart has grown to become a prominent global cryptocurrency exchange, offering services to more than 9 million users across 180+ countries.).

• XT.com (XT.com was founded in 2018 and operates worldwide, but is especially popular in Asia. XT is not just a cryptocurrency exchange where you can trade cryptocurrencies, but an entire ecosystem for trading, earning, and borrowing cryptocurrency.).

• CoinW (Founded in 2017, CoinW has become a significant player in the global cryptocurrency exchange space, serving over 7 million users across more than 120 countries. ).

• Deepcoin (Deepcoin, a cryptocurrency exchange founded in 2018 and headquartered in Singapore, has become popular among 10 million users worldwide.).

• LBank (LBank has gained popularity worldwide, particularly in Asia and Europe.).

• Toobit (Toobit is a relatively young cryptocurrency exchange, founded in 2022. Since then, more than 3 million users have registered on the platform, which is a good sign for a newcomer to the cryptocurrency market.).

• CEX.io (CEX.io is a cryptocurrency exchange founded in 2013 and known for holding licenses to operate in regions where they are difficult to obtain. This demonstrates that the exchange is reliable and operates within the legal framework even in complex jurisdictions, providing users with optimal conditions for interacting with cryptocurrency.).

Cryptocurrency futures trading represents enormous profit opportunities, especially in a bear market. However, futures trading in particular involves a level of risk (especially on margin) that should not be underestimated, and can only be done effectively within the context of a well-informed and disciplined strategy. It can be a powerful tool in the crypto market for those willing to navigate its complexity.