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What are Futures in Crypto?

Futures are contracts that include two parties, one of which agrees to buy a commodity and another – to sell it. The price for the underlying asset is pre-agreed, the same as the date when the contract must be executed. Futures trading is an old financial tool that can be used with gold, grain, oil, silver, or any other commodity with value. 

What is futures trading crypto? Like any other valuable commodity, crypto assets can also be a subject for futures trading. Such a tool is available on large and credible crypto platforms:

  • WhiteBIT;
  • Coinbase
  • Binance.

How do Futures Work for Crypto?

Crypto futures involve price speculation when two commodities investors “bet” on the asset’s rate in the future. The contract they make includes price, date, and the method of settlement the contract must be executed. Investors can conclude crypto futures contracts on regulated and not regulated exchanges.

Crypto Futures Trading on Regulated Exchanges

Let’s consider the advantages of trading crypto futures, taking the WhiteBIT exchange as an example. It is a regulated platform that operates officially and complies with all the laws and rules in this field. The platform is robustly protected against hacker attacks and ensures security for users and their funds. Here is why using WhiteBIT is the best idea for futures trading.

The exchange offers the lowest fees for using leverage in futures trading. Leverage allows multiplying your initial investment. WhiteBIT offers 20X leverage.

WhiteBIT is constantly working on expanding the range of crypto asset pairs that can be used for futures trading, and soon, the platform plans to add SOL/USDT, ADA/USDT, and a couple more pairs.

The WhiteBIT platform can proceed with a huge number of futures deals simultaneously. Due to the impressive liquidity pool the platform has, it can work with large traders.

Futures trading is a rather more advanced financial tool requiring your experience. The WhiteBIT exchange offers demo trading for those who feel unconfident about one’s trading skills. Using a demo account, you don’t lose your funds but receive priceless experience and confidence.

Santino D' Antonio

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Santino D' Antonio

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