Bitcoin is not a newbie and we all know the story of someone who has purchased cryptocurrency and then due to drastic changes in Bitcoin, lost everything. Sometimes the unreliability associated with cryptocurrency exchange can cause heavy losses. Hence, a contract represents the efficiency of public expenses which is also becoming popular nowadays among the investors. Let us learn about Bitcoin futures more.
The best advantage is that Bitcoin futures do not always assure profit but they are highly used in the financial markets in order to prevent the negative changes which can ascertain the assets.
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Develop an understanding of Bitcoin futures
Bitcoin’s future exchange is conducted between the market participants eradicating all the possible theoretical conflicts between the traders and potential exchange. Bitcoin futures are also cheap to trade and there are lots of options to experiment with. Futures represent a contract of selling and purchasing a particular asset at its specific price in the future. Once the future contract gets closed both the parties are involved to fulfill their applications at the earlier agreed price irrespective of the actual market price to the expiration date of the contract.
Based upon the type of Bitcoin future contracts the users can opt for two possible solutions-
- Taking the long contract, the user has to agree to buy the assets in future at a fixed price on the day of the expiration of the contract.
- Taking the short contract position the user has to agree to sell all the assets at a fixed price on the day of the expiration of the contract.
Best Bitcoin future exchanges
The economic platforms need Bitcoin futures because it gives transparency and maximum liquidity over the assets. The recoverable price discovery of Bitcoin is also incredible and it essentially crypto market to its best. Some of the remarkable Bitcoin exchanges are-
- BitMEX exchange
Launched in the year 2014, BitMEX is famous for a number of reasons. Firstly, it is the impressive design of the platform having a number of useful tabs. This platform has multiple cryptocurrency futures which are traded in a perpetual contract manner which means that it doesn’t follow any expiry date.
BitMEX also offers Bitcoin Cash, Cardano, Ripple, TRON, and various future contracts. Some of its perks are-
- 025% fee
- 1 USD future contract cost
- The ticket is as XBT
- Kraken exchange
This platform offers Litecoin, Ethereum, Ripple, and Bitcoin futures. Bitcoin futures are extremely useful considering the capital which means that the opening position for the contracts essentially requires limited money as compared to the spot or margin trading.
If you have around 10 bitcoins and you are afraid of the price fall you can complete all of your money for spot trading or some of it for margin trading at Kraken. Some of its perks are-
- Limited fee
- Latest in the industry
- Ticket is XBT
- Binance exchange
In the year 2019, the BINANCE exchange announced the release of its platforms for Bitcoin futures which were earlier in test mode. Bitcoin futures are available for the users in a beta mode having a referral code. This platform uses WTH, USDT, EOS, and also sorts of contracts.
BINANCE can also accept transfer funds from its main exchange to Binance Jex or futures. Its perks are-
- It requires no fee for funding
- Ticket is BTC
- The launch date is 2019
- BitFlyer exchange
BitFlyer initially launched Bitcoin futures which is quite different from the offerings of CME and CBOE the purchase amount has to be around 0.001 BTC. The amount is around 1000 times lesser than CBOE and 5000 times lesser than CME.
This platform provides exchange leverage as 1:4 and contracts having one week to quarterly maturity time. Bitcoin futures are only purchased by owners who have relatively small capital.
- Ticket is BTC
- The cost of one futures contract is 1 USD
- Minimal fee
The platform was introduced in 2019 and it is run by a very experienced team. Here the users can deliver cryptocurrency futures leverage in the amount up to 100 times. After the expiration of the contract the user also receives the amount directly.
Kucoin platform has ultimate performance in Bitcoin’s futures exchange mechanism from all the prominent technologies. Its perks are-
- The price of one futures contract is 1 USD
- Very high TPS
- Contracts are traded against Tether Stablecoin
- Base FEX
This platform is registered in Seychelles and it allows the exchange of trading perpetual contracts up to leverage of 100x for BTC or ETH. The contract at this platform is updated every 8 hours and the source also has a funding rate system containing the discount prices and interest rate.
The most significant advantage of this platform is its fewer fee guidelines. It perks are-
- Price of one futures contract is 1 USD
- Text minimal fees
- One of the most reliable platform
Advantages of Bitcoin futures
Bitcoin futures are extremely easy to trade and they also represent the effective use of capital or investment. They are not only cheap but also have reliable liquidity concerns.
Risk of Bitcoin futures
Bitcoin futures have a large number of advantages but it also comes with certain limitations. The trading is also conducted on margin but it can sometimes lead to account liquidation. Some platforms conduct the expiration according to their guidelines hence, Bitcoin futures are also prone to regulated exchanges.
In general, the Bitcoin market has made potential contributions in the massive acknowledgment of the assets with its long-term growth. The integration of Bitcoin futures is dynamic in the same.