Futures trading is one of the popular investment tools that allow speculating on asset prices through making predictions. Such commodities as gold, silver, oil, and others are used for futures trading. The essence is to forecast the future price of a commodity.
What are futures in crypto? The same as other commodities, digital assets are used for futures trading. Experienced investors conduct thorough analyses of an asset and the market to predict its price at some point in the future. For that purpose, investors analyze the following:
- crypto charts of the asset;
- market trends;
- technical part of the asset;
- find patterns and investigate historical price indicators.
All these help to understand future price behavior and make correct predictions.
Being the most popular crypto asset, Bitcoin is the most traded crypto in futures trading. BTC has the largest market capitalization and daily trade volume. Therefore, this crypto is always in demand. It is the reason why futures on Bitcoin are so popular. Platforms Binance, Kraken, WhiteBIT, and FTX support BTC futures. Every platform offers different sizes of leverage that can be used for BTC futures trading. Leverage is used for multiplying investors’ initial holdings, and it can be up to 100X. The bigger the leverage, the higher the risk; thus, the bigger the profit in the case the prediction was correct. Experienced traders use large leverages; however, we recommend starting with small leverage.
You can practice different leverage on the WhiteBIT crypto exchange and see how it works. For that purpose, register a demo account and use demo tokens. Working in demo mode, you will receive the necessary experience and skills in trading using all available tools. Besides, demo trading allows realizing the weak sides and pitfalls you might miss out on when trading on a real market.