Crypto trading opens numerous opportunities for investors to multiply their capital in a short time. Due to the high volatility of digital assets, it is possible to make a profit in small portions many times a day or to invest for the long term and hold assets until their price significantly grows. Every investor picks the strategy for trading on their own, for trading requires knowledge, experience, quick reaction, and a cold head.
Advanced traders often use such a financial instrument as crypto futures. It’s a somewhat risky type of trading, so it is recommended for those who already have some crypto trading experience.
Crypto futures trading is a kind of speculation on the assets’ price. Using a special platform or a crypto exchange, a trader bets on the future price of an asset and concludes a contract for buying or selling this asset on some exact date in the future at a pre-agreed price. The price, date and settlement method are documented in the contract. Depending on how the asset behaves in the future (grows or drops), the trader receives income or has to payout.
Traders often use leverage in crypto futures trading. Leverage allows to “borrow” funds from an exchange or a platform where the trader concludes a contract. Borrowed funds can be 5X, 10X, 20X, etc.
Best Crypto Futures Trading Platform
Here are some popular crypto platforms where you can make future contracts:
- WhiteBIT
- Kraken
- FTX
- Binance
- ByBit
When picking an exchange for trading, pay attention to its reputation, liquidity, market capitalisation, trade volume, the availability of crypto pairs to be traded, the level of security, etc. The bigger the liquidity, the bigger leverage a platform can offer its clients in futures trading.
The WhiteBIT crypto futures platform allows practicing trading of all types on a demo account entirely for free. Futures trading is a complicated financial tool, so to ensure you know all the peculiarities, you need to have enough experience. So welcome to the WhiteBIT demo trading section.