The cryptocurrency market is developing, and so are crypto trading platforms. Big and trusted exchanges like Binance, Coinbase, WhiteBIT, and Kraken add more trading and investment options for their users. Some of them are too complex for a beginner trader. One such option is crypto futures trading. Indeed, many users find this trading tool too challenging and risky. Let’s explain why it happens and where you can get enough practice with this trading method.
What is futures trading crypto? In essence, futures are contracts where the forecasted asset’s value is fixed as well as the day when a trader owes to sell assets or buy them at the fixed price. Since the market direction may be up and down, there are two options for a trader:
- to go “long” – predicting the price increase and planning to sell coins when the contract expires;
- to go “short” – forecasting the rate drops and buying assets at a reduced rate.
Both options imply that a trader is able to analyze the market trends and estimate future price movements; otherwise, it is only guessing, which does not bring fruit.
What is Required for Successful Crypto Futures Trading?
First and foremost, a trader should understand how the market works and what impacts its fluctuations. A trader should be able to read charts, identify price indicators and patterns, and analyze chart figures. That is an in-depth technical analysis that takes a lot of effort and time. What also matters is the ability to estimate the global economic situation and figure out the processes that can affect the crypto scope.
Best Futures Trading Platform for Beginners
WhiteBIT is a young exchange that has already gained the trust of millions of crypto users worldwide. It offers crypto futures trading with a maximum of X20 leverage – the possibility to multiply your positions 20 times. Also, WhiteBIT supports perpetual futures contracts that have no expiration date.
To begin with crypto futures trading we recommend using a demo account on WhiteBIT. In the process of practicing, you will understand all the details of this complex trading tool and use different sizes of leverage to see how it works.