What is Crypto Futures Trading?
In the futures market, you are trading contracts to buy or sell a crypto at a “FUTURE” date. When you purchase a futures contract, you do not own the underlying assets. Instead, you own a contract with an agreement to buy or sell that specific cryptocurrency.
Crypto futures contracts offer protection against big price swings in the market. Also, it is a tool for traders to speculate on the future prices of a specific cryptocurrency, without having to come out of pocket for the full price of that asset.
With futures contracts, you can take advantage of price volatility. Regardless of whether prices rise or fall, futures contracts enable you to participate in a cryptocurrency’s movements with ease. In other words, you can speculate on a cryptocurrency’s price rather than buying the underlying asset itself.
If you expect the value of an asset to go up, you will buy a futures contract to go long, and if you expect it to fall, you will sell to go short. Your profit or loss will depend on the outcome of your prediction.
This is a form of trading the serious investor will want to learn more about.