Why do investors buy and sell bitcoin futures contracts?

When investors buy and sell Bitcoin futures contracts, they are speculating about BTC’s future price. In essence, two parties make a bet: One believes the BTC will go up in price in the future, and another bets BTC will fall in price. The person who gets it wrong pays the other party a cash settlement.

What are the benefits of trading bitcoin futures?

Additional benefits of trading Bitcoin futures include: Ability to go long or short easily on the real-time price movement of Bitcoin Instantaneous transactions with lower and predictable costs No need for a digital wallet or concerns about a potential loss from hackers Highly regulated with guaranteed transactions through CME Group

Is trading bitcoin futures a risky investment?

Trading futures, derivatives and other instruments using leverage involves an element of risk and may not be suitable for everyone. Read Kraken’s risk disclosure to learn more. Bitcoin futures let you gain exposure to BTC without having to buy and hold any in your portfolio. Check out Kraken Futures' secure trading platform today.