Strategies of Crypto Futures Trading


Futures are obligations made between two parties to buy crypto (or sell) it at a pre-agreed price and date. Both parties are obliged to complete their obligations regardless of fluctuations in the rate on the day when the contract expires. You can enter into contracts to buy or sell assets directly on any crypto futures platform.

In simple terms, crypto futures work as follows:

  • You predict that the price of an asset will rise (or fall) and agree in advance on its price on a certain date.
  • You do not necessarily buy the asset but enter into a contract with a certain price and date.
  • At the end of the contract period, you receive a profit (if your prediction was correct) or a loss (if the price of the asset moves in the opposite direction).

This method of trading has been used in commodities such as gas, gold, and oil. And today, it is also available in the cryptocurrency market.

The value of the futures contract depends on the chosen coin, its up-to-date rate, and the contract conditions. On cryptocurrency exchanges, you can choose leverage and multiply the initial amount by X10, X50, etc.

Bitcoin contracts are the most widely traded as BTC is considered the most stable and fastest-growing cryptocurrency asset over the long term. BTC futures are available on major trusted platforms: Binance, WhiteBIT, ByBit and FTX.


The Best Methods for Crypto Futures

These are the most widespread futures strategies:

  • Counter-trend trading
  • The pullback strategy
  • Trading the range
  • Buyer and seller interest.

To apply these methods effectively, you need to comprehend the principle of their work. However, learning alone is not enough to trade successfully. If you want to practice your strategies on a real cryptocurrency exchange, look for a demo account on the WhiteBIT platform. Demo trading allows you to test all the instruments on the exchange and practice all your trading strategies without risk. With a demo account, you can improve your trading skills and discover the pitfalls of all trading strategies. You can control your risk by choosing your leverage. In other words, by choosing small leverage, you can realize that the risk is minimal.

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