Crypto futures trading mean that a contract has been entered between two investors to bet on a cryptocurrency’s future price. Futures allow investors to hedge against the volatility of the markets and that the transaction is completed at the future price decided earlier by the two investors. In crypto futures trading a buyer can select cryptocurrencies without purchasing them. Similarly, at the other end the seller can select the same cryptocurrencies by setting a value to be sold at a future date. It also means that the buyer of the cryptocurrency will purchase the same at the price agreed upon at the future date while the seller will have to deliver the same at that price on that future date. The contract is binding even if there is rise or fall in future prices of the cryptocurrency.
The cryptocurrency future trading is traded only on futures exchanges and the buyer and seller must open a brokerage account to get approval to trade in futures. There are different kinds of cryptocurrencies worldwide and when you have agreed upon to buy or sell at a future date then only that specific currency is to be traded. It means you cannot trade one currency with another as the agreement price between the seller and the buyer is set for the future. In fact, bitcoin Futures Trading cannot be compensated or exchanged with Ethereum Futures Trading position.
Legal agreements to buy or sell Ethereum at a future date can be carried out on authorized ETH Futures Trading platforms. For this you both the buyer and the seller will need to pay brokerage charges for each transaction on their brokerage account. Both Bitcoin and Ethereum have been hot favorites for futures trading crypto bets and many people had reaped huge fortune out of derivative trading. Yet in the year 2022 things have not been well for both and Bitcoin trading in BTC Futures Trading has seen significant fall in value.
Below are the best 5 crypto futures trading companies 2022.
BTCC makes crypto trading reliable & accessible to everyone. We offer daily, weekly, and perpetual contracts on Bitcoin, Ethereum, and other hottest crypto assets.
2. Kraken Exchange
As one of the largest and oldest Bitcoin exchanges in the world, Kraken is consistently named one of the best places to buy and sell crypto online, thanks to our excellent service, low fees, versatile funding options and rigorous security standards — but this is only part of the story. We’ve been on the forefront of the blockchain revolution since 2011.
Binance is more than a crypto ecosystem. It’s a vibrant global community powered by Binance users from all walks of life, who come together both in real life and online to pursue their passions and advance the crypto cause.
Built on customer-centric values, we endeavor to provide a professional, smart, intuitive and innovative trading experience to better serve our customers in a timely manner. We are committed to creating a fair, transparent and efficient trading environment, and offer 24/7 multi-language support as part of our service.
Phemex is a Singapore-based cryptocurrency and derivatives exchange. We offer zero-fee spot trading services and we are among the fastest-growing in the industry! Register today to enjoy special discounts and bonuses!