Futures is an investment instrument for speculating on asset prices. Commodities such as gold, silver and oil are used for futures trading. Basically, it is about predicting the future price of a commodity. Like other commodities, digital assets are used to trading futures. Experienced investors conduct a thorough analysis of the asset and the market to predict its price at a certain point in the future. To do this, investors analyse the following aspects:
- Market trends.
- Technical aspects of the asset.
- Crypto charts of the asset.
- Patterns and historical price indicators.
Futures on Bitcoin are the most widespread; let’s see why it is so and where to practice it.
What are the Best Crypto Futures?
When picking a crypto asset for futures trading, one should pay attention to the asset’s liquidity and volatility. Coins with low liquidity and market cap are not a good option for this type of trading. The same as those that are subject to high volatility. You should only pick those coins that have high liquidity, that is always in demand, and with the lowest price fluctuations. Thus, top-traded coins would be the best option for futures. Why are Bitcoin futures so popular? As a matter of fact, Bitcoin is the leading crypto asset and the most traded digital asset; BTC has the largest market capitalisation and the highest volume. Therefore, this cryptocurrency is always in demand.
Where To Trade Futures?
The Binance, Kraken, WhiteBIT and FTX platforms support futures. All platforms differ in the amount of leverage available for trading Bitcoin futures. Leverage is used to multiply the investor’s initial stake and can be up to 100 times. The higher the leverage, the higher the risk, but also the profit if the prediction is correct. Experienced traders use higher leverage, but we recommend starting with lower leverage.
On the WhiteBIT cryptocurrency exchange, you can test different leverages and see how it works in practice. To do this, register a demo account and use a demo token. By working in demo mode, you can gain the experience and skills you need to trade all available instruments. Demo trading also allows you to identify weaknesses and pitfalls that you may overlook when trading in the real market.