cryptocurrency: Futures trade for beginners
In recent years, the world of finance has recorded a significant change as cryptocurrency increases and trade in Futures contracts. Cryptocurrencies, such as Bitcoin, Ethereum and others, have gained popularity as alternative forms of digital currency, while Futures trade is to speculate the movement of basic assets, such as currencies, goods or indicators.
What is the Futures trade?
Trading Futures, also known as a contract trade, is a kind of financial transaction in which individual agreements for the purchase or sale of assets at a certain price at a specified period in the future. The buyer of the contract pays a bonus for the right to perform the contract at a fixed price, while the seller of the contract earns the difference between the price of performance and the market price.
Types of Futures contracts
There are several types of futures contracts, including:
- Cash actions
: These are the most common type of Futures contract in which the investor buys or sells specific shares at a certain price on a certain day.
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- Futures of goods : These contracts are traded on physical goods such as gold, oil or agricultural products.
- Futures in currency : These contracts are traded on currencies and include speculation about exchange rates.
TRADING Futures cryptocurrency
The increase in cryptocurrencies has created a new Futures contract trade market, especially in the areas of Bitcoin and Ethereum derivatives. These contracts allow investors to speculate about future price movements of these assets, with many platforms offering levers and margins.
Benefits of trade in cryptocurrency contracts
- Higher lever : Futures trade in cryptocurrency allows investors to use a relatively small amount of capital to use larger price movements, enabling significant profits.
- Diversification : Investing in cryptocurrency derivatives can provide investors with a way of diversifying their portfolios and a potential increase in returns.
- No minimum investment requirements : Many trade platforms of cryptocurrency Futures do not require minimal investment requirements, which makes it available to a wider scope of investors.
Risk of Futures trading in cryptocurrencies
- market variability : The cryptocurrency market is highly unstable, and prices can change quickly, which leads to significant losses if it is not properly managed.
- Risk of liquidity
: The risk of liquidity exists when trading in large amounts of assets at low prices, which hinders sales or buying quickly enough to avoid significant losses.
- Adjusting risk : The regulatory landscape for cryptocurrency derivatives is still developing and may be subject to changes that may affect investors.
Tips for beginners
- Educate yourself : Before starting trade, devote time to learning the basics of trade in Futures contracts, including risk management strategy and the use of lever.
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Application
Trading Futures in cryptocurrencies offers investors a new way of speculation about the price movements of basic resources, but requires careful risk -related consideration.