What are Futures in Crypto?
Futures is a tool allowing traders to generate income from both growing and declining markets. The essence is to predict the market’s direction and to “bet” on it by concluding an agreement:
- If a trader believes the asset’s value is to grow soon, one eagers to sell his coins at a higher rate in the future. So one opens a long position.
- If a trader expects the soon market’s collapse, one sells out his coins and then plans to buy them back when their price gets lower.
Asset volatility plays a big role in the success of crypto futures trading. The more liquidity for the asset and the less volatility – the better for the trader. That is the reason why BTC futures are the most popular. Bitcoin has the highest market cap and the highest liquidity level, so it is perfect for futures trading.
How to Trade Crypto Futures?
There are over 500 crypto exchanges and applications for trading and investments. The best services for futures trading are:
- OKX Futures.
These are reliable platforms for futures trading. Each offers different conditions and charges different fees, so be careful when reading requirements.