Futures are agreements that are a common financial tool used for trading gas, oil, precious metals, and other valuable commodities of the traditional market. Futures contracts imply that a trader forecasts the future value for the commodity and is obliged to buy or sell them at some exact point in time, also stated in the agreement.
Now, what are futures in crypto? Similarly to traditional futures, they can be made between crypto traders betting on the future value of an underlying crypto asset. Crypto futures are agreements where the value and the expiration date are specified. Parties owe to purchase or sell coins when the agreement terms expire. There are options to go long or short, which means positive and negative price forecasts.
Is it a Good Idea to Start Crypto Futures Trading?
Crypto futures are incredibly profitable, allowing you to multiply initial investments many times while also imposing high risks or bearing losses in case your price forecast is wrong and the market turns in a totally different direction.
What is needed to succeed in crypto futures trading:
- in-depth tech analysis, understanding crypto charts, finding price indicators and patterns.
- fundamental analysis: research of the global market and factors impacting the digital scope.
- quantitive research: calculating crypto asset indicators that help determine the point of investing in them.
We dare say it is not a good idea to start your journey in crypto trading with futures – beginner traders might face many difficulties in this financial instrument. It is better to start with something elementary, like buying and selling assets using a dollar-averaging or position trading strategy.
However, if you aim to learn more about how futures work, go to WhiteBIT Blog. There you will find many valuable articles and guides for novice traders. To practice different trading strategies, use the WhiteBIT crypto exchange demos account.
