Trading cryptocurrencies allows experienced investors to receive enormous amounts of money in the short term. It’s all because governments do not control crypto assets, so their prices can move up and down independently of states’ decisions and emissions. Thus, the high volatility of digital coins pushes the development of the trading era. It spurred the emergence of numerous trading platforms that enable advanced trading tools to make money.
However, trading is always connected with risks. So if you want to become a part of this industry, this article will be helpful, for we will mention some crucial things for you to know about trading.
Crypto futures is a type of trading that allows investors to profit on both dropping and growing markets. Trading of futures is when two parties conclude a contract for buying or selling crypto assets somewhere on the exact day in the future and at the pre-agreed price.
Each participant picks from “long” and “short” positions, where “long” means a user expects the price to increase, and “short” stands for the price drop. Thus, futures trading allows making a profit even when the asset’s rate drops.
How to Trade Crypto Futures: Tips for Beginners
Crypto futures are available on such popular platforms:
Here are useful recommendations for beginner traders.
Understanding of the market. Before getting engaged with such a challenging type of trading as crypto futures, you should understand the key things about the market: how it works, how to trade, what capitalisation is, trade volume, leverage, liquidity, etc. Also, you will need to be able to read crypto charts and carry out the analysis of the market on your own.
Evaluate risks. Pick established assets for futures trading (ETH, BTC), for they are likely to grow modestly in the future. Be careful with new and little-known assets.
Keep track of the news. Remember that the crypto market often depends on the news background, so stay up to the latest updates on this industry.
For more information on how to trade futures crypto, check out the White Blog.