Futures are a popular financial instrument used by experienced traders in traditional markets. A futures contract is an agreement on the future value of an underlying commodity. That can be grain, oil, precious metals, gas, etc. Crypto futures are also very popular among traders as the cryptocurrency market evolves, but the underlying asset is not gas or grain, but cryptocurrencies. Due to the volatility of the digital asset market, traders can make a lot of money with cryptocurrencies, and one of the popular methods is crypto futures trading.
What is Cryptocurrency Futures?
Like traditional commodities, futures agreements include the prediction of the future value of an asset: two parties enter into a contract to buy or sell crypto assets on a specific date in the future. The date and price are fixed.
Two options are available here:
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Commandez Maintenant- A trader can predict an increase in the value of the asset, so he « bets » on it and is obliged to sell the asset when that date arrives.
- A trader predicts that the value of the asset will fall, so he sells his asset in advance and buys it back at a lower price when that day arrives.
This way, crypto futures allow you to make money even in a falling market.
Where to Trade Crypto Futures?
The WhiteBIT exchange offers open contracts in futures trading. Such contracts do not contain an exact date on which the agreement must be fulfilled. In this case, the value of the asset follows the level of the spot market. This is made possible by the exchange’s financing mechanism, developed specifically for cryptocurrency futures trading. Therefore, traders can receive or pay commissions according to their contracts depending on their positions and market fluctuations.
Read more about futures trading on the WhiteBIT blog.