Futures is a common financial tool mainly used by experienced traders who can predict the future price of commodities. In essence, it is betting on how the value of this or that commodity changes by some certain day in the future. Parties make a contract where they indicate the expiration date and the price for the asset (or anything that has value like gold, oil, etc.). Each party can pick two options for crypto futures trading:
- Long (the party thinks the asset’s rate will grow and plans to sell one’s holdings on the contract’s expiration day).
- Short (the trader believes the price will drop and sells his holdings first to repurchase them at a lower price on the day the contract expires).
Futures crypto trading takes place on a particular crypto futures platform. Here are the most common services for this type of trading:
- WhiteBIT
- ByBit
- Binance
- Kraken
- FTX.
What Is The Best Crypto Futures Trading Platform ?
Crypto futures trading involves technical analysis of the underlying asset and assessment of its price changes and trends, achieved through in-depth investigation of crypto charts. However, knowledge is not enough for success. Experience is what matters a lot in this type of trading. But how to get enough skills without risk? The answer is WhiteBIT demo trading. This option implies using demo tokens for practicing different tools and investment instruments on the WhiteBIT platform. The user does not deposit or withdraw real money from the demo account. Instead, one practices and finds all the pitfalls one could miss when trading on real markets.
Demo trading also helps receive confidence in every next step and form a reaction to different unexpected situations that may occur in crypto futures trading. You can also try to use different leverage sizes as a part of this trading tool and see how it works.
