What are Cryptocurrency Futures?
Prior to the introduction of crypto futures, cryptocurrencies were bought and sold at full price on a digital currency exchange—traders could buy and hold them, but they were limited from going short.
Cryptocurrency futures contracts provide the ability to go long or short easily in a volatile marketplace, hedge existing holdings in cryptocurrencies, and operate in highly regulated and well-established trading environment.
Trade The Leading Cryptocurrency Benchmarks
Cryptocurrency futures consist of two key futures contracts that represent different ways cryptocurrency can be used:
Bitcoin was primarily created as an alternative to traditional currencies to provide a decentralized environment for transactions. Since the number of Bitcoins is capped at 21 million, it's also considered an alternative way to store value.
Ether is the cryptocurrency that powers and facilitates operations within the Ethereum network—a digital platform for blockchain development and innovation that allows for electronic decentralized smart contracts.
Trade Bitcoin at a Fraction of the Cost
At 1/10th the size of one Bitcoin, Micro Bitcoin futures allow traders to access this highly active cryptocurrency market with reduced costs and low margins. Other advantages of trading these bite-sized contracts include:
- Highly leveraged markets for more buying power
- Start with a smaller account vs. full-size Bitcoin contract
- Increased flexibility for better position management
Micro Bitcoin futures contracts provide an ideal entry point for new futures traders to start small and scale up as you become more comfortable in the live markets.
Leverage also increases the risk associated with futures trading and only risk capital should be used for trading.
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Intro To Technical Analysis
Learn to leverage technical analysis to target futures trading opportunities and identify trends using chart types, indicators and more.
Become A Cryptocurrency Futures Trader Today
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