Crypto Futures: Essence and Possibilities

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Crypto futures is the type of trading where parties make a contract on buying/selling assets in the exact point in time and at a pre-agreed price. It requires skills in forecasting the future price of crypto, which means you should understand how the whole market works. As the volatility is high, there are huge risks as well as enormous possibilities to generate income and expand your investment portfolio.

If you want to start with crypto futures, we recommend using popular crypto assets for it, for example, Bitcoin. So let’s talk about BTC futures and the key things of futures trading as a whole.

Crucial Components Of Futures On Bitcoin

Here are the key things you should know about Bitcoin futures:

  • Leverage. Futures trading includes the opportunity to use leverage. It can make your trading really efficient. If you buy BTC in the spot market, you pay for it at the current price. When it comes to futures, you don’t necessarily buy crypto – you open the position for some part of BTC price and use leverage. It can be 20X, 30X, or even 100X leverage. 
  • You can go “long” and “short”. Futures trading allows making money on both upward and downward market trends. “Long” means you make a contract with the thought that the price will grow. “Short” means the position on a “bear” trend, when you are confident the rate will drop. So futures allow making money even when the rate falls. 
  • Liquidity. A high level of liquidity allows to make money on future trading and the Bitcoin market is the biggest in terms of liquidity. Usually liquid market means lower risks because there are always people who desire to buy crypto and sell it. 
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The WhiteBIT exchange offers a perpetual futures contract. That is, there is no expiration date to carry out a contract. The price in such contracts keeps close to the spot prices, which is possible thanks to the funding mechanism on the exchange. Try futures trading on a demo account on the WhiteBIT platform.

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