How to Trade Futures with Cryptocurrencies?

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Futures are contracts involving two parties, one agreeing to buy a commodity and the other to sell it. The price of the underlying asset is agreed in advance in the same way as the date on which the contract should be performed. Futures trading is an ancient financial instrument that can be used with gold, grain, oil, silver or any other commodity that has value.

How to trade futures with cryptocurrencies? Like other valuable commodities, crypto assets can be the subject of futures trading. Such a tool can be found on major and reliable crypto exchanges that we have mentioned below. futures exchange can be done on their current platforms:

  • WhiteBIT;
  • Coinbase
  • Binance.

How Futures Work in Cryptocurrency Transactions

On crypto futures, price speculation is done when two commodity investors “bet” the future rate of the asset. The contract they make includes the price, date and signature of the parties. Investors can place crypto futures contracts on regulated and unregulated cryptocurrency platform exchanges.

Trading Crypto Futures on Regulated Exchanges

Let's consider the advantages of trading crypto futures by taking the example of the WhiteBIT live cryptocurrency exchange. It is an officially operating and regulated cryptocurrency trading platform in accordance with all laws and rules in this field. The platform is robustly protected against hacker attacks and provides security for user funds. This is why using WhiteBIT is the best idea for futures trading.

In the stock market, you can benefit from the lowest fees for the use of leverage in futures transactions. Leverage allows you to increase your initial investment. On the WhiteBIT exchange, you can trade with 20X leverage.

WhiteBIT is constantly working to expand the range of cryptocurrency trading pairs that can be used for futures trading, and alongside the possibility to trade bitcoin futures, the platform plans to add SOL/USDT, ADA/USDT and a few more trading pairs soon.

The WhiteBIT platform can work with multiple futures contracts at the same time. Thanks to its impressive liquidity pool, the platform offers large investors the opportunity to trade large amounts.

To trade futures, you need to have experience. On the WhiteBIT exchange, those who have no experience in trading and those who are not confident can create a demo account and perform demo trades to improve their skills. By using a demo account, you can gain experience without losing your money.