Futures crypto trading is an efficient financial tool that allows to bet on the future assets prices and gain profits. The process might seem rather complicated for a beginner trader, so in this article, we will come up with a simple futures trading guide to help you understand what steps should be taken for successful trading.
Before explaining how to trade crypto futures, it would be appropriate to mention some crucial aspects every experienced trader knows:
- To predict the future price of a crypto asset, you should analyze its fluctuations in the past and find some historical indicators and patterns.
- You should be able to read crypto charts and see the market trends.
- Carry out technical analysis of the asset.
- Consider the news background, which also affects the price movements.
- Evaluate the global economic situation.
Beginners Guide to Trading Futures
First, pick an asset you want to use for futures trading. Choose popular crypto coins with large trade volumes and market capitalisation. Little-known assets are not a good idea for futures trading, as their rates are incredibly volatile. We recommend picking Bitcoin, Ethereum, Solana, and other credible assets.
Next, pick a platform where you will trade – Binance, WhiteBIT, Kraken, or any other large exchange supporting futures trading.
Then deposit crypto to your account and pick the leverage you want to use. Different crypto platforms offer different leverage. It can be 5x, 10x, 20x, or 100x. Then pick the type of order you want to enter the market with. It can be long or short (sell assets or buy). Also, mention the number of contracts you want to make. Some futures trading strategies imply using several contracts to hedge risks.
To practice how futures trading works, welcome to the WhiteBIT platform. It allows for demo trading using demo tokens, which you can’t lose or deposit. Having enough practice in demo trading, you will receive valuable experience and skills for future trading on real markets.