Table of Contents
1 Key Takeaways
- Crypto futures trading offers profitable opportunities with leverageโ.
- You can trade long or short with crypto futures.
- 4 benefits and 4 risks of crypto futures trading.
- 5 Key Differences: Futures and Perpetual Contracts
- 3 reasons you should trade Crypto Futures.
- Beginners can make money from crypto futures trading by using the right strategies.
- A hedging strategy can offset potential lossesโโ.
- Leverage can magnify both gains and losses in futures trading.
- A reliable trading platform is key for diverse futures contractsโ.
2 What Is Crypto Futures Trading?
A crypto futures contract is an agreement to buy or sell a specified amount of a cryptocurrency at a predetermined price on a set future date, without actually owning them.
It lets you make a bet on what they think a digital currency’s price will be in the future.
Therefore, you can profit from price movements.
The profits for one single trade can be huge by using leverage (1x-100x), which is a magic feature of crypto futures contracts.
Crypto futures contracts are one of the popular types of crypto derivatives.
Due to the significant profit potential, traders have developed numerous strategies in crypto futures trading to capitalize on market movements.
GoRichFIRE has curated the best crypto futures trading strategies that have the potential to enhance your profits.
Contrarily, crypto spot trading allows you to directly trade cryptocurrencies.
If you’re new to crypto trading, this article is for you: Crypto Trading 101: The Ultimate Beginnerโs Guide.
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3 How Do Crypto Futures Trading Work?
โContract of a Deal
In crypto futures trading, you’re making a deal (a futures contract) about a specific cryptocurrency, for instance, Bitcoin.
You and another person agree on the price of Bitcoin and the date when you’ll settle the deal.
โExpiration Date
Crypto futures contracts have a predetermined end date, known as the expiration date.
This is the point at which the agreement ceases to be valid.
The expiration date is vital to futures trading because it sets the timeframe for the investor’s market prediction.
Usually, you can choose between contracts that expire weekly, monthly, or quarterly, based on your strategic plan.
On the other hand, perpetual futures contracts are a special kind, which don’t expire due to the unique funding rates mechanism.
โSpeculating on Price
Let’s say you both agree that on a specific date in the future, the price of one Bitcoin will be $60,000.
If you think the price will actually be higher than $60,000 on that day, you’d agree to buy.
If the other person thinks it’ll be less, they’d agree to sell at this price.
โLeverage
Leverage enables you to control a higher position with a smaller amount of your own capital.
It’s a key feature of crypto futures trading, which can amplify both potential profits and potential losses.
Consider a trader with $1,000 in a trading account who decides to use 5x leverage.
This means that you can take a position in a futures contract worth $5,000, essentially multiplying market exposure 5 times.
โMargin
In futures trading, you need to deposit an initial amount of money, known as the “margin,” to open a position.
The margin represents a fraction of the total contract value.
If the market moves against your position, your losses could exceed your initial margin.
This scenario is where a “margin call” comes into play.
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โMargin Call
A margin call occurs when an investor’s account value falls below the broker’s required minimum, prompting a request to add more funds.
Essentially, it’s a demand for more capital to keep trades open when lose money.
Let’s illustrate this with an example.
Suppose you’re trading Bitcoin at a price of $60,000 per coin with 5x leverage.
You deposit $12,000 of your own money and borrow $48,000 from the broker, buying a total of 1 Bitcoin.
Now, if the price of Bitcoin drops to $50,000, the total value of your investment is now $50,000.
The equity in your account (the total value of $50,000 minus the borrowed $48,000) is now only $2,000.
If the broker’s maintenance margin requirement is 30% of your total account value ($15,000 in this case), they would issue a margin call because your equity ($2,000) is well below the required amount.
To satisfy the margin call, you need to add more funds to your account to bring the equity back into positive territory.
If you fail to meet the margin call, the broker can close your positions to recover the funds loaned to you.
Thus, trading on margin can significantly increase both potential profits and losses.
โNot Owning Cryptocurrency
The main idea here is that you never own the actual cryptocurrencies.
You’re simply speculating on what its price will be in the future, and settling the difference in cash.
โPhysically Delivered
Some crypto futures contracts are physically delivered, meaning the underlying cryptocurrency assets are transferred on the contract’s expiration.
It’s an important aspect of crypto futures trading, as it indicates that the trader would receive the actual cryptocurrency at the end of the contract, not just the contract’s cash value.
Here’s a quick example for you.
Suppose you have a physically delivered futures contract for 5 Ethereum (ETH), expiring in March 2024.
If you hold the contract until its expiration, you will receive 5 ETH in your cryptocurrency wallet.
However, this is less common as most contracts are cash-settled.
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โCash Settlement
In most cases, crypto futures contracts are financially settled, meaning the buyer and the seller will not actually exchange the cryptocurrency at the end of the contracts but will settle the contract in cash (usually U.S. dollars or stablecoins).
For example, Suppose the actual price of Bitcoin is $65,000.
Now, let’s fast forward to the agreed date.
As a buyer, you were correct in predicting that the price would be higher than $60,000.
The seller would pay you the $5,000 difference, which is your profit from the trade.
On the other hand, the seller was wrong thinking it would be less.
โUnits per contract
Units per contract refer to the specific quantity of the underlying cryptocurrency represented by a single futures contract.
These quantities can vary significantly based on the cryptocurrency involved and the exchange on which the contract is traded.
For instance, on the CME Group exchange, a standard Bitcoin futures contract represents 5 Bitcoins, whereas on Kraken, one Bitcoin futures contract equates to 1 Bitcoin.
โMinimum Price Fluctuation
The minimum price fluctuation, or “tick,” is the smallest amount by which the price of a crypto futures contract can change.
This is often one of the overlooked aspects that many traders miss, but it significantly affects the granularity of their trading strategies and the calculation of potential profits or losses.
For example, if a Bitcoin futures contract has a minimum price fluctuation of $5, this means the contract’s price can only change in increments of $5.
Therefore, if Bitcoin’s price is currently $60,000, the next possible price for the futures contract would be $60,005 or $59,995, not $60,001 or $59,999.
This smallest change in the contract’s price – in this case, $5 – directly influences how profits and losses are calculated in crypto futures trading.
โProfit and Loss (P&L)
The profit and loss (P&L) in crypto futures trading is the monetary gain or loss made from trading a futures contract.
It is calculated based on the difference between the contract’s buying price and selling price.
For example, let’s say you use 5x leverage to buy a Bitcoin futures contract for 1 BTC at a price of $60,000.
If the price of Bitcoin rises to $61,000 and you sell the contract, you will make a profit of $1,000.
But because of the 5x leverage, this translates into a $5,000 profit ($1,000 x 5).
โP&L Range
The P&L range provides the possible profit and loss a trader could experience in a futures contract.
It is influenced by factors like the price of the underlying asset, the duration of the contract, and market volatility.
It’s a helpful tool for risk management and strategic planning.
To illustrate, let’s use the previous example of you entering a Bitcoin futures contract at $60,000 with 5x leverage.
If you estimate that Bitcoin’s price could realistically move between $59,500 and $60,500 during the contract’s duration.
The P&L range for this contract is -$500 to +$500 per BTC.
With 5x leverage, this range magnifies to -$2,500 to +$2,500.
This range tells you the potential profit and loss you could face based on your market predictions.
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4 3 Types of Crypto Futures Contracts
Crypto futures and perpetual futures are 2 of the 4 common types of derivatives in crypto.
โTraditional Futures Contracts
Traditional futures contracts in the cryptocurrency market are agreements to buy or sell a specific cryptocurrency at a predetermined price at a specific future date.
โPerpetual Futures Contracts
Crypto perpetual futures contracts are a popular choice in crypto futures trading.
They are similar to Traditional futures contracts but with no expiry date, meaning you can theoretically hold your positions indefinitely.
These contracts mimic crypto spot trading but enable you to hold positions with smaller funds by utilizing higher leverage.
They are often subject to funding rates, which keep the contract’s price tethered to the underlying asset’s spot price.
GoRichFIRE unlocks all the secrets of crypto perpetual futures contracts in a dedicated article, which explains in detail the mechanism, benefits, and risks.
The article also exclusively offers 6 winning strategies and 6 pro tips to maximize your profits!
โFutures with Physical Delivery
Futures contracts with physical delivery involve the actual transfer of the underlying cryptocurrency when the contract expires.
It’s an intriguing option for traders who want to acquire the specific crypto without the immediate need for the full amount of capital.
This type of futures contract is not that popular as most of the futures contracts in crypto are cash-settled.
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5 4 Benefits of Crypto Futures Trading
โSimplicity and Convenient
While trading crypto futures, you don’t have to create crypto wallets or worry about secure storage because these futures contracts are cash-settled, not the actual cryptocurrency.
Take Bitcoin futures as an example.
You don’t need a wallet to store Bitcoin; instead, you trade contracts based on Bitcoin’s price prediction.
Upon the contract’s expiry, any profit is made in cash (or stablecoins), not Bitcoin.
Beginners can start trading Bitcoin futures through a regulated exchange like Bitget and Pionex, which typically provides tools for risk management, like stop loss and take profit orders.
โPotential for Huge Profits
As a leveraged product, crypto futures contracts allow you to gain exposure to larger amounts of cryptocurrency than you could afford to purchase outright.
This leverage means that even small market movements can result in significant returns.
For instance, let’s say you have $1,000 to invest and you use 10x leverage to enter a Bitcoin futures contract, meaning you’re controlling $10,000 worth of Bitcoin.
If Bitcoin’s price increases by 5%, your contract value will rise to $10,500.
But since your initial investment was only $1,000, this $500 gain means you’ve achieved a 50% return on your initial investment.
โFlexible in Trading Strategies
You can take both long and short positions, which means you can profit from both rising and falling markets.
Furthermore, crypto futures contracts can be used to hedge existing positions, providing additional risk management capabilities.
Here are the best crypto futures trading strategies that can effectively enhance your ability to make money.
โPerpetual Futures: No Expiration
As I mentioned earlier, perpetual futures contracts don’t expire due to the funding rates mechanism.
You can hold it as long as you want, theoretically.
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6 4 Risks of Crypto Futures Trading
โLeveraged Losses
While leverage in crypto futures trading can amplify profits, it can also magnify losses.
If the market moves against your position, you could lose a significant portion, or even all, of your initial investment.
Therefore, it’s crucial to manage risks appropriately, perhaps by setting stop-loss orders, trailing stop orders, and never trading with more than you can afford to lose.
โMarket Volatility
The cryptocurrency market is known for its high volatility.
While this can lead to substantial profits, it also increases the risk level.
Sudden price swings can trigger forced liquidation of futures positions if the price reaches the liquidation level, especially when using high leverage.
โMargin Call
A margin call occurs when you’re required to add more funds to your account to maintain your position due to market losses.
Failure to meet the margin call can result in your position being liquidated.
This means your broker can close your trades to prevent further losses.
In other words, liquidation acts as a safety mechanism, ensuring that you do not lose more money than you have put into your trading account.
โ24/7 Market
The continuous, 24/7 nature of the cryptocurrency market can be an inherent risk in crypto futures trading.
This means prices can fluctuate dramatically at any time, potentially impacting trades even when you’re not actively managing them.
Poor crypto trading strategies or excessive use of leverage can amplify these risks.
For instance, if the market takes a downturn while a trader has a high-leverage position open and isn’t able to respond promptly, this could lead to substantial losses.
Thus, while the 24/7 market offers potential profits round-the-clock, it demands careful strategy planning and cautious use of leverage.
The list of The Best Crypto Futures Trading Strategies can assist you in formulating effective strategies to generate potential profits.
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7 5 Key Differences: Futures and Perpetual Contracts
The key differences revolve around expiration dates, funding rates, price convergence, settlement methods, trading strategies, market conditions, and cost considerations.
โExpiration Date
Traditional futures have a set expiration date, marking when the contract will be settled, whereas crypto perpetual contracts can be held indefinitely, with no expiration.
โFunding Rates
Crypto perpetual contracts implement a funding rate to align the contract price with the spot price of the underlying asset.
In contrast, traditional futures contracts do not involve funding rates and have specific expiration dates.
This article decrypts all the secrets of funding Rates.
โPrice Alignment
Traditional futures contract prices can fluctuate based on market conditions, which may result in premiums or discounts compared to the spot price.
As the expiration date nears, the price of traditional futures tends to converge with the spot price.
On the other hand, crypto perpetual contracts, with the mechanism of funding rates, generally maintain a closer alignment with the spot price.
โTrading Strategies
Due to the distinct features of traditional crypto futures contracts and perpetual futures, there are specific trading strategies tailored for each.
For example, a grid trading bot takes advantage of the ‘no expiry date’ feature of crypto perpetual contracts.
This bot is designed to capitalize on price volatility, allowing you to profit from price swings, particularly suitable for beginners.
On the other hand, traditional futures prices typically trade at a premium to spot prices, primarily due to costs associated with storage and insurance.
This phenomenon is commonly known as ‘contango‘.
This opens up opportunities for various trading strategies.
For example, you can simultaneously buy in the spot market (long position) and sell in the futures market (short position).
Over time, the futures price converges with the spot market price, especially as the settlement date approaches.
This strategy can generate relatively risk-free returns, unaffected by market volatility or overall conditions.
It is a market-neutral strategy known as “cash and carries arbitrage“.
โSettlement Method
Traditional crypto futures may be either cash-settled or physically settled, while perpetual contracts are always cash-settled.
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8 Why Trade Crypto Futures?
โProfit From Any Market Conditions
You can open both long and short positions, you can potentially make profits regardless of whether the market is bull or bear, moving up or down.
Traders often use crypto futures trading for speculation, aiming to profit from price fluctuations.
โArbitrage
You can exploit price differences between the spot market and futures market, or between different futures contracts, to generate risk-free profits.
However, arbitrage requires a keen eye for detail, a deep understanding of the market, and swift execution.
โHedging
Crypto futures contracts are an excellent tool for hedging. Hedging is like insurance for your investment, not a profit-making method.
For example, if you hold a particular crypto asset and anticipate a price drop, you can open a short position through a futures contract to potentially offset any losses from your holding.
If crypto prices soar, your current purchase gains value, but you’re committed to selling at a lower future price.
If prices fall, you lose on your current purchase, but your futures contract lets you sell at a higher price.
So, whether prices go up or down, your potential profits or losses from the immediate purchase and the futures contract balance out.
There’s a safe method to potentially earn more money with crypto perpetual futures using a hedging strategy.
In this approach, you simultaneously buy crypto and sell a corresponding contract, which can yield profits from funding rates.
To automate this process, you can use a bot that can automatically adapt and profit from market changes.
It offers two modes: Aggressive and Moderate.
The Aggressive mode allows for potentially larger returns by investing more through 1-3x leverage.
In contrast, the Moderate mode is safer, involving no leverage.
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9 What to Consider Before Trading Futures?
โLeverage
Crypto futures trading allows leverage, enabling you to control a large position with a smaller amount of capital.
However, while leverage can magnify potential gains, it can also magnify losses.
โLiquidity Assessment
Liquidity refers to the ability to quickly buy or sell without causing a significant price change.
High liquidity results in tighter spreads, thereby reducing transaction costs.
โMarket Volatility
Crypto markets are extremely volatile, leading to significant price swings.
This volatility can impact the value of your futures contracts.
Understanding the market condition whether is bull or bear can be a huge impact on forming futures trading strategies in crypto.
โDiversification Strategy
One of the key strategies to minimize risk in trading is diversification.
This involves trading a range of futures contracts based on various underlying assets and trading spots.
By opening multiple positions in diverse cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), you can construct a well-balanced futures contract portfolio.
This strategy helps to reduce the risk of exposure to a single asset that could unexpectedly drop in price.
To further build your own profitable strategy, you can read the ultimate comparison of crypto spot vs futures trading.
โExpiration Date
Each futures contract has an expiration date.
The price of futures contracts can vary significantly as this date approaches.
Be sure to understand how expiration dates can impact your trading strategy.
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10 Is Crypto Futures Trading Profitable?
Crypto futures trading can be highly profitable due to the leverage offered.
However, profitability depends on your skill, risk tolerance, and market conditions.
Successful traders use strategic risk management techniques to protect their capital and maximize profits.
These articles can significantly enhance your skill to profit from both crypto bull and bear markets.
11 How to Start Trading Crypto Futures
โChoose a Futures Trading Platform
Select a reliable and user-friendly trading platform that offers futures contracts on various cryptocurrencies.
Check for features like advanced crypto trading tools, security measures, and responsive customer support.
Bitget is recognized as one of the leading derivatives platforms, providing robust liquidity for a wide range of cryptocurrencies and offering auto trading bots that can potentially earn profits for you around the clock.
Bitget provides a unique opportunity for you to benefit from the expertise of experienced traders who consistently make money.
You can review and replicate their trades effortlessly.
It’s a simple way to make money by following successful traders.
You can also learn practical trading strategies by observing these experts in action.
But remember, copy trading does not guarantee profits.
There is always a risk of potential losses involved.
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โAllocate Funds
The first step is to allocate a specific amount of capital for trading.
Remember, only use funds you can afford to lose, as trading involves risk.
โDedicate Time
Crypto futures trading requires time and attention.
Set aside dedicated time each day to monitor markets and related data, and execute trades.
โDevelop a Trading Strategy
Finally, formulate a robust trading strategy.
A well-planned strategy will guide your trading decisions, helping to minimize emotional trading and impulsive decisions.
Consider factors like entry and exit points, risk-reward ratio, and position sizing.
GoRichFIRE wraps up by presenting the best crypto futures trading strategies, carefully curated to accelerate your profit growth as quickly as possible.
โUnderstand On-Chain Data
On-chain data has become increasingly important in futures trading.
On-chain data gives you an insight into transactions that occur directly on the blockchain of a specific cryptocurrency, providing valuable data about network health, economic activity, and potential price movements.
Platforms like Glassnode offer extensive on-chain data, becoming a crucial tool for trading success.
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12 Where can I Trade Bitcoin and Crypto Futures?
โBitget
Bitget is a regulated cryptocurrency exchange established in 2018.
It offers a wide array of over 400 cryptocurrencies and numerous trading pairs. It’s licensed in Canada, the US, and Australia.
The platform provides spot, derivatives, and copy trading, using perpetual future contracts for derivatives with leverage up to 125x.
It features One-Click Copy Trade, attracting more than 80,000 copy traders.
Bitget also provides user-friendly crypto trading bots, including grid trading bots and Martingale bots.
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โPionex
Pionex is a Singapore-based cryptocurrency exchange distinguished by its automated trading bots.
The platform not only allows users to automate their crypto trading strategies but also comes with more than 16 trading bots for optimized, low-risk digital investment.
With its user-friendly interface, minimal fees, and wide selection of supported cryptocurrencies, Pionex stands as one of the unique exchanges offering built-in trading bot features for both high-profit potential and risk management.
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13 Who Should Trade Crypto Futures?
Crypto futures contracts suit a variety of individuals, ranging from seasoned traders to more conservative investors looking to diversify their portfolios.
โProfit Seekers
These individuals seek to maximize their profits using the leverage that futures contracts provide.
With leverage, you can control a large position with a relatively small amount of capital, amplifying potential profits.
However, it’s important to note that while leverage can increase profits, it can also magnify losses.
โHedgers
Hedgers look to mitigate risk against adverse price movements in cryptocurrencies.
Many traders and long-term investors use hedging strategies to protect their positions.
โBeginners
Crypto futures trading can be a good starting point for beginners keen to delve into the crypto trading world.
Beginners should start with a conservative approach, understanding the potential risks and market dynamics before committing significant capital.
You can start by reading the ultimate beginner’s guide for crypto trading 101, try to trade with small leverage, and consider using beginner-friendly trading bots like the grid trading bot
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โLong-term Investors
Long-term investors may use futures contracts to gain exposure to cryptocurrencies without the need to manage wallets or private keys.
As futures contracts can be cash-settled, they provide a way to speculate on the long-term price movement of a crypto asset without needing to own the asset directly.
They often hold both traditional futures contracts and perpetual futures contracts.
โArbitrageurs
These traders take advantage of price discrepancies between futures prices and spot prices.
This ultimate guide to arbitrage is the only one you need to read on this topic.
โPortfolio Diversifiers
Thanks to leverage, you can invest in various cryptocurrencies with less capital.
When the market rises, the growth often spreads from one sector to another.
For example, a trend might go from AI coins to blockchain coins.
By diversifying with crypto futures trading, you can potentially catch many of these profit opportunities.
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14 Crypto Futures vs. Commodity Futures
โSimilarities
Standardization
Both commodity and crypto futures are standardized contracts.
They both stipulate the quality, quantity, and delivery time of the underlying asset.
Leverage
Both types of futures contracts provide traders with the opportunity to use leverage, meaning they can control a large position with a relatively small amount of capital.
This feature can magnify potential profits, but it also increases the risk of substantial losses.
Purpose
Both commodity and crypto futures can be used for speculation or hedging.
Traders speculate on the price movements of the underlying asset, while hedgers seek to lock in a future price to mitigate the risk of adverse price movements.
โDifferences
Underlying Asset
The most fundamental difference is the underlying asset.
Commodity futures contracts are based on physical goods like oil, gold, or grains, whereas crypto futures are based on digital assets such as Bitcoin or Ethereum.
Delivery
Commodity futures often result in the physical delivery of the asset, requiring the actual movement of physical goods.
In contrast, most crypto futures are cash-settled, which means traders settle their obligations in cash rather than delivering or receiving the actual cryptocurrency.
Expiry
Some crypto futures, such as perpetual contracts, do not have a specified expiry or settlement because of a funding rates mechanism, differentiating them further from traditional commodity futures.
Trading Hours
Commodity futures markets usually have specific trading hours, often aligning with regular business hours.
On the other hand, crypto futures markets operate 24/7, reflecting the non-stop nature of the global cryptocurrency market.
Price Volatility
Cryptocurrencies are generally more volatile than most commodities.
This increased volatility can lead to larger profit or loss swings in crypto futures trading compared to commodity futures.
Regulation
Commodity futures markets are typically well-regulated by established bodies such as the Commodity Futures Trading Commission (CFTC) in the U.S.
In contrast, crypto futures, while subject to regulation, operate in a relatively new and rapidly evolving regulatory environment.
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15 Crypto Futures vs. Options
Here we do the ultimate comparison of all the details of this topic.
You’ll learn the essential comparison below.
โSimilarities
Derivative Instruments
Both futures and options are derivatives, their value is dependent on an underlying asset, which can range from cryptocurrencies to stocks, commodities, or indices.
Use Cases
Both Instruments are tools for traders and investors seeking to capitalize on market movements or to protect against adverse price shifts.
Trading Platforms
Both futures and options can be traded on various platforms, including Bitget, Binance, Bybit, OKX, and Pionex.
Expiration Dates
Both traditional futures and options contracts have specific expiration dates, after which the contract is settled.
As you’ve just read earlier, crypto perpetual futures contracts are different from regular futures contracts because they don’t have a fixed end date.
Instead, they use funding rates to maintain their ongoing nature.
โDifferences
Obligation vs. Right
A crypto futures contract imposes an obligation on both parties to buy or sell the underlying asset at a predetermined price and date.
This is particularly useful for Bitcoin miners or entities that deal with the actual underlying asset, as they can hedge against operational and business risks from unforeseen market movements and volatility.
In contrast, a crypto options contract gives the holder the right, but not the obligation, to buy (call option) or sell (put option) the underlying asset, making it more suitable for speculative traders due to limited downside risk.
Related Reading: Top Crypto Options Trading Strategies To Amplify Profits
Risk and Reward
Crypto futures contracts have the potential for unlimited gains or losses, while options contracts offer buyers a capped risk (the premium paid), but potentially unlimited profits.
Premium
In crypto options contracts, a premium is paid by the buyer for the right to exercise the contract, whereas futures contracts do not involve a premium.
Settlement
Crypto futures are often settled in cash.
Crypto options contracts, however, may expire worthless if not exercised.
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16 Final Thought
The potential astonishing profits of crypto futures can be attractive.
However, the risk can be augmented with leverage as well.
Before allocating a large portion of your funds to trading, it is essential to focus on the basics, such as crypto derivatives and the difference between crypto spot and futures trading.
Beginners can start with small leverage on platforms like Bitget and Pionex, which offer a range of user-friendly trading tools, including automated trading bots
Bitget also provides a ‘copy trading’ feature that allows you to replicate the trades of experienced traders and learn their trading strategies and logic over time.
Furthermore, we have dedicated significant effort to curating an article on the best crypto futures strategies to help you profit from the market.
In fact, trading is not the sole path to wealth in the crypto world. GoRichFIRE presents the 15 best ways to make money with crypto, offering diverse opportunities for financial success.
Remember to evaluate your trading goals and employ risk management strategies to protect your investments.
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17 Frequently Asked Questions
Is crypto futures trading risky?
Indeed, crypto futures trading involves risk. Leverage, while increasing potential gains, can also magnify losses. Risk management strategies are crucialโ.
How do I start crypto futures?
How much money do you need to start crypto futures?
The initial capital for futures trading varies based on the trading platform and the specific contract. It’s recommended to only use funds you can afford to loseโ.
How to trade crypto futures for beginners?
Beginners should start with understanding the fundamentals and risks, formulating a trading strategy, and then practice trading on a reliable platform like Bitget before investing significant fundsโ.
Are crypto futures good?
Yes, crypto futures can be a powerful tool when used correctly. They offer flexibility, can be traded 24/7, and allow hedging and leverage. However, they also come with risks, so careful consideration and understanding of crypto futures trading strategies is crucial.
Can you become a millionaire from crypto futures trading?
Yes! However, while it’s possible to make substantial profits, it’s not guaranteed. Success depends on various factors like market knowledge, risk management skills, and the use of effective crypto futures trading strategies.
Who trades crypto futures?
Crypto futures are traded by a wide range of individuals and entities. These include beginners, day traders, long-term investors, and institutional traders who employ different crypto futures trading strategies to hedge risk or speculate on price movements.
Do crypto futures expire?
Yes, traditional crypto futures contracts have a set expiration date. When this date is reached, the contract is settled. On the other hand, crypto perpetual futures contracts do not have an expiry date.
How do you win crypto futures?
Winning in crypto futures trading requires careful planning and execution of crypto futures trading strategies. It’s essential to stay updated on market trends, manage risk effectively, and have a solid understanding of how futures contracts work. Trading experience can significantly increase your chances of success.
*Note
1. Profits are not guaranteed. Providers may change any terms at any time.
2. It’s crucial to note that regulations may vary, and users from certain countries might not pass KYC requirements. Always check your local regulations before participating in any program.
3. Currently, the 20% off on transaction fees on Pionex is only available on spot trading. Please note that terms may be subject to change without notice.