Crypto futures trading is something new that people are doing. It is a new way to invest in the crypto world. Currently, there are about 6000 tradeable cryptocurrencies and so this type of trading will stay in the coming years too. Crypto futures provide a lot of opportunities and challenges as well. Here we are going to learn more about crypto futures.
Crypto futures allows traders to get digital currencies without owning the cryptocurrency. It’s similar to taking a risk on an asset’s future value. The crypto futures contracts get their value from Bitcoin or Ethereum. Crypto futures give protection against adverse price changes and the high volatility of digital currencies. So, the traders can buy assets that are low and place them on sale when the price increases. Crypto futures work on traditional platforms like Binance Futures.
Trading with Binance
A trading futures contract on Binance is very simple. You first need to open a futures trading account on Binance. Then you should deposit funds in cryptocurrencies supported by Binance Futures.
Trading futures contracts on Binance is pretty straightforward. If you are an existing Binance user, you can get started with futures trading within minutes. Choose your preferred futures contract: USD-M Futures or COIN-M Futures. Then choose the leverage for the futures contract and place orders. Binance accepts many different currencies. You can buy crypto with USD, Pound Sterling, or Euros. You can also use Binance USD, Coinbase USD, Tether, and others to buy crypto. Binance currently has an exchange score of 9.9, with a liquidity of 619 and 372 coins. (Source: Coin Market Cap).
Recently Binance faces charges of money laundering and tax sleuths. They received a warning from the UK’s financial regulator and they cannot do any regulated activity. However, this won’t have any impact on the activities of its website. In the UK, any kind of marketing activity on Binance is not allowed currently and the FCA is not permitting to open any exchange in the UK.
Crypto trading futures allow users to make a profit from both the rise and fall of crypto-asset value. They offer leverage on capital. However, it is highly volatile and risky. With the current situation, you must be careful when dealing with Binance. You must have good knowledge about it and know risk management techniques to avoid any major loss. So, do your research before dealing with Binance.