What are Futures Trading?

Futures trading is an old financial instrument that, in essence, is a kind of speculation on the future price of a commodity. It may be gold, silver, grain, oil, or any other valuable commodity which price can be forecasted based on some analytic data and charts. 

As the crypto industry evolves, many crypto platforms also start to enable the function of crypto futures trading. The essence is the same as with other commodities. Two parties make a contract on buying or selling an underlying digital asset (for example, Bitcoin). One party opens a “long” position, hoping that the BTC rate will increase, and another party goes “short”, believing the price will drop. The contract includes the date when the parties must execute settlements and their agreed price.

When the contract expires, the party that was right about the future BTC rate receives payments from another party. The size of the payment depends on how the BTC rate changes as of the contract expiration.

That is what crypto futures stand for without dwelling on details. Now that we have answered the question “What is futures trading” let’s find out what is the best platform for it.

Platforms for Trading Crypto Futures

Crypto futures are available on the following exchanges:

  • ByBit
  • Kraken
  • Binance
  • FTX.

All these platforms are large and credible; they operate officially and receive users’ trust. To make sure you work with a reliable service, check out its online reviews. Also, pay attention to the indicators mentioned further.

Trade volume. Indicates how many assets were bought and sold. This figure shows real interest in a platform from the part of users. For example, Binance is the largest crypto exchange in terms of daily trade volume.

Liquidity. The bigger the liquidity, the more platform opportunities to provide traders with big leverage for crypto futures trading. For example, the WhiteBIT exchange allows for X20 leverage.

Safety. Pay attention to how an exchange protects users from hacker attacks and what mechanisms it implements.

Crypto pairs available. Pick a platform that enables trading crypto futures for crypto assets you need.

Welcome to the WhiteBIT demo trading section to try yourself in crypto futures.

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