What is Crypto Futures Trading, and How Can You Get Started?


Futures trading is a common financial instrument mainly used by experienced investors. Any valuable commodity can be a subject for futures trading – grains, gold, electricity, precious metals, etc. Crypto assets can also be used for this type of trading. 

How does crypto futures work? Even though crypto prices are highly volatile, they can be predicted, provided that an investor is able to conduct an in-depth analysis and has expertise in this field. Futures trading is a type of speculation on the future market movement. So it relies on traders’ predictions and skills in forecasting. Futures trading is not about guessing the future price, but it is about learning the market patterns, charts, and indicators and drawing a conclusion on the future asset price changes based on historical analysis of that asset. 

Once such analysis is completed, a trader picks the strategy one will use for futures trading. One of the most popular is the “long and short” strategy.

How to start trading futures?

Register on one of the following crypto platforms:

  • Kraken
  • WhiteBIT
  • Finance 
  • FTX.

Pick the asset for crypto futures trading. We recommend picking one of the popular crypto coins, such as BTC, SOL, and ETH, with high indicators of trade volume and significant market capitalization. 

Analyze the further development of the asset’s price and decide on your position – either you go long or short. 

Long is chosen if you expect the price to increase, so you plan to sell your holdings and receive a profit. A short position is selected when you think the rate will drop, so you plan to buy coins at a reduced price.

Then conclude a futures contract on one of the above-mentioned exchanges and pick long or short. Also, pick the leverage you wish to use in your trade. You may practice trading futures on a demo account on the WhiteBIT exchange. 

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