Bitcoin futures are a form of digital asset trading. They allow you to speculate on the value of a certain asset and settle in cash. The process is straightforward. All you have to do is sign up for a free account. There’s also a free guide to BTCC https://www.btcc.com/ that will help you get started trading futures.
Bitcoin futures are a digital asset
Bitcoin futures are a form of digital asset investment that provides indirect exposure to bitcoin. This type of investment removes the hassles associated with owning and managing bitcoin wallets, private keys, and broadcasting transactions on the blockchain. It also offers investors the convenience of staying inside the traditional financial system.
Bitcoin futures trading began in late 2017 on the Chicago Board Options Exchange (CBOE). Today, the CME is the largest bitcoin futures exchange. However, the Cboe product has been discontinued. The CME has established a subsidiary in the U.S. and is quickly growing.
Bitcoin futures are a great way to hedge your crypto holdings or speculate on the future price of BTC. Unlike traditional stocks, they are a derivative contract that obligates two parties to exchange an asset at a future date for a cash equivalent. Bitcoin futures involve two parties making bets on the future price of BTC and paying out the difference in cash.
They are a speculation entry
Bitcoin futures trading is one way to trade in Bitcoin. Traders can use three types of futures contracts: daily, weekly, and perpetual. Daily contracts have a daily expiration date, while weekly and perpetual contracts have no expiration date. Each of these contracts offers varying degrees of leverage: 10x, 20x, 50x, and 100x.
BTCC has been a leading provider of Cryptocurrency futures products since 2011, and their platform is one of the most secure in the world. BTCC futures are a great way to profit from volatility, as they allow you to buy and sell while the market is falling or rising. After selecting a time frame, you can buy and sell using the green buy button.
They settle in cash
BTC futures trading is a way for investors to trade BTC without actually holding it. These contracts settle in cash, not BTC, so investors do not need to hold BTC in their wallets to trade the futures contract. BTCC, one of the oldest cryptocurrency exchanges, is a leading market for futures trading. It launched the world’s first physically-delivered perpetual contract in January 2018 that allows investors to settle their trades in cash. Within 24 hours, its trading volume surpassed RMB 1 billion. Bakkt, another popular cryptocurrency exchange, has since launched daily and monthly Bitcoin futures contracts.
Compared to spot exchanges, BTC futures trading is less volatile, and it does not require the use of a wallet or exchange. Furthermore, BTC futures are regulated by the Commodity and Futures Trading Commission (CFTC). This means that the money involved in futures trading is secure. The regulator also ensures that institutional investors have confidence in the futures market. Another advantage is that Bitcoin futures trading is cash-settled, so there is no need for a Bitcoin wallet. The market itself is also regulated, which helps reduce the risk of price slippage.
They are regulated
Bitcoin Futures Trading is regulated by the Commodity Futures Trading Commission (CFTC). The CFTC views Bitcoin as a commodity, and regulates futures contracts on the Chicago Mercantile Exchange. The CME introduces new monthly cash settlement contracts every month, and also lists a quarterly contract for the upcoming quarter. The last Friday in each month marks the end of the month, and each contract represents five Bitcoin.
BTC Futures Trading is not without risk, though. Traders must ensure that they understand how their investments will affect their profits and losses. This is especially important when you consider the leverage used to trade the futures, which means that you can purchase a large number of Bitcoins for a fraction of their true value. While this makes the futures market more enticing for investors, it also makes it more risky – mistakes are easily made and large losses can be sustained.
They offer leverage
If you want to trade Bitcoin futures without owning the actual currency, BTCC is a good place to start. BTCC provides leverage up to 150x for USDT perpetual contracts, and its mobile apps are designed to make the whole process easier. Leverage can be a big advantage for investors who want to profit from the market by making correct predictions.
Leverage can help you increase your profits, but it can also make you lose a large portion of your money. Imagine that you only have $200 in your account. By utilizing leverage, you can open a much larger contract with a much higher amount of collateral. Likewise, if your margin deposit is just $20, your leverage can be up to 100x.