Cryptocurrency: Futures Trading 101 for beginners

The cryptocurrency world has exploded in recent years as the value of bitcoin and other digital currencies is rising to an unprecedented level. However, in addition to headlines and market volatility, it is worth exploring a more nuanced aspect: trade in future transactions.

Future Transactions are an advanced financial strategy involving the purchase or sale of assets such as cryptocurrency, goods or indexes, contracts or sale at a pre -set price on a particular day in the future. This article will delve deeper into the future transactions of cryptocurrencies, its advantages and risks and give advice to beginners who want to start.

What are the future transactions of cryptocurrencies?

Cryptocurrency future transactions are agreements between the parties to buy or sell the main assets (in this case, Bitcoin) at a predetermined price at a certain future. The most well -known example is the Chicago Mercantile Exchange (CME), offering a variety of cryptocurrency future transactions, including Bitcoin’s future transactions and gold for future transactions.

Why is the future transactions of cryptocurrencies?

Trade cryptocurrencies can offer several benefits:

• Liquidity

  : As the largest digital currency market, there is a large network of buyers and sellers that wants to trade at any time.

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• Diversification : You can diversify your investment portfolio by incorporating the future transactions of cryptocurrency.

Basic concepts

Before diving into the world of cryptocurrency future transactions, it is necessary to understand some of the basic concepts:

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• Preparatory Requirements : To cover your transactions loss or profit, you will need to bring a margin (or “margin call”).

• By leaving open positions : If your future position does not move in your favor, you can close to record profits and avoid further losses.

Cryptocurrency Future Types

There are several types of contracts for the future of cryptocurrencies:

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• Arrows -based contracts : Contracts for an index, such as the S&P 500, which can be used for hedging purposes.

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Benefits and Risk

Benefits:

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Risk:

• Market volatility : Prices of main assets can fluctuate quickly, so if they are not properly managed.

• Liquidity risk : Limited trading activities can lead to higher price differences and reduce the liquidity of your transactions.

• Risk of Protection Competition : You may face the risk of another country when using a third party broker or exchange.

Tips for beginners

If you are a newcomer to Cryptocurrency Futures Trading, here are some tips on how to start:

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• Start a small : Start with a small position and gradually increase it with experience and self -confidence.

• Set clear goals : Define your investment goals and tolerance for risk before trading in cryptocurrencies.

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