How to Trade Ethereum (ETH) Futures on BTCC

Ethereum (ETH) futures contracts are among the most robust in the cryptocurrency industry, with daily volume on the main crypto exchange doubling that of Ethereum spot trades throughout the market. Ethereum futures allow investors to profit from fluctuations in the price of Ethereum in the short term, amplify their investment returns, and reduce risk.

In order to get started with ETH futures contracts, you should read this.

What is ETH Futures Contracts

Futures contracts on Ether (ETH), the cryptocurrency that fuels the Ethereum network, allow investors to speculate on whether the value of ETH will rise or fall in the future. Futures contracts are agreements to purchase or sell an asset at a future date; however, ETH futures are settled in cash rather than ETH.

Futures contracts based on ETH are known as ETH futures contracts, however ETH itself is not the underlying asset. In this scenario, Ether (ETH) is the underlying asset from which a derivative “derives” its value. When you trade a derivative, you aren’t actually buying or selling the underlying asset, but rather a representation of it.

How do ETH Futures Work

Commodity markets have a long history of using futures as a trading instrument because they provide a means for sectors to smooth out price fluctuations and for speculators to speculate on future price swings. Futures can also be used to insure against short-term price fluctuations that would otherwise reduce the value of an investor’s holdings.

In finance, a futures contract is a legally binding agreement between two parties to acquire or sell an asset at a specified future date and price. Some Ethereum (ETH) futures contracts, such those traded on Binance and the Chicago Mercantile Exchange (CME), settle for their cash value rather than the actual Ethereum (ETH) being transferred between the buyer and seller.

Many ETH futures deals, however, employ a form of this contract structure known as perpetual futures, which never expire and for which delivery is not necessary. The price of a perpetual futures contract is often linked to the asset’s actual market value over the duration of the trade.

You may be able to pick between regular futures, which are contracts for the real asset (ETH) or a cash settlement, and perpetual futures, a derivative that neither necessitates nor has an end date, depending on the exchange you use.

How to Trade Ethereum (ETH) Futures on BTCC

• STEP 1: Open the webpage of BTCC futures trading 
• STEP 2: Choose the type of ETH futures contract to buy
  
• STEP 3: Choose the order types of ETH
• STEP 4: Choose the level of leverage
  
• STEP 5: Choose the lot size
  
• STEP 6. Set take profit and stop loss targets
  
• STEP 7.Choose the price direction: Buy when bullish, Sell when bearish

STEP 1: Register an Account

Visit the BTCC website and create an account. Provide the requested information, complete the verification procedure, and implement any necessary security measures, such as two-factor authentication (2FA).

1. 1 Open an Account

This will redirect you to the registration page, where you will be required to submit some basic information, including your email address or phone number and a password. Enter the Referral code below to receive rewards if you have been referred by another BTCC user.

Next, you will receive a confirmation email to validate your identity. Execute the procedure by adhering to the instructions provided in the email. This procedure guarantees that your new BTCC account is exclusively accessible to you.

In order to comply with KYC/AML regulations, licensed crypto exchanges such as BTCC are required to identify all registered users. To accomplish this, you will require a government-issued identification document, such as a national ID, passport, or driving license.

Not only will your account be verified, but your daily transaction limit will be increased, and you will be eligible for a variety of special offers (coupons/rebates) by uploading a photo of your document(s).

STEP 2: Deposit Funds

After you’ve created your account, you’ll need to finance it. BTCC may accept numerous deposit methods, including bank transfers, cryptocurrency deposits, and other payment choices. Select the way that works best for you and follow the instructions to deposit funds into your account.

2.1 Choose Fiat Currency to Deposit

Click to operate :https://www.btcc.com/en-US/user-center/assets/deposit/usdt

Deposit in fiat currency is to use credit card or other fiat currency channel to buy and deposit money. As the global fiat currency channel varies, the actual situation needs to be based on the current fiat currency channel used by BTCC to carry out relevant operations.

Select the purchase quantity and payment currency, then click Pay Now on the corresponding payment method to proceed to payment.

After successful purchase, the payment will be credited to your BTCC account within 2~30 minutes. Blockchain network conditions or service provider status may affect the crediting time.

If you encounter any problems when making a deposit, please contact our customer service via the bottom right corner of this page.

STEP 3: Start Trading

3.1 Choose the type of crypto futures

BTCC supports a range of cryptocurrency trading pairs. Select the trading pair you want to trade. For example, if you want to trade Bitcoin for Ethereum, you would choose the BTC/ETH trading pair.

3.2 Choose the order types of ETH

Select the order types for ETH at the top right of the page. The order types at BTCC included market orders, limit orders and stop loss orders.

• Market orders: Users place orders at the best current price to execute buy or sell order instantly.
• Limit order: A limit order is a type of order set by the trader to buy or sell at a specified price level or better. The buy order will be executed at the limit price or a lower one, while the sell limit order will be executed at the limit price or a higher one. The limit order can be seen by the market, which has given the opportunity for market participants to fill the buy or sell order.
• Stop order: A stop order, also known as the stop-loss order is a type of order set by the trader to buy or sell at a specified price level. The order will be executed automatically after a certain price level has been reached.

3.3  Choose the level of leverage 

You can adjust the level of leverage based on your need. For example, the leverage of ETH’s weekly contract included 10x, 20x, 50x, and up to 100x leverage.

3.4 Choose the quantity

Enter the quantity or choose the percentage under the quantity field.

3.5 Set take profit and stop loss targets

Market orders, limit orders and stop orders can used to set stop-profit and stop-loss price targets. The difference is that market orders can be executed immediately at the best current price, while limit orders and stop orders can only be executed at the price within a day or during the week.

STEP 4: Stay Informed

Keep track of market movements, news, and other factors that may influence cryptocurrency pricing. BTCC may offer real-time market data, trading charts, and analysis tools to assist you make informed trading decisions. Staying educated can help you optimize your trading tactics.

How To Long ETH Futures？

In a long ETH futures position, you wager that the price will increase in the future. Nevertheless, because you are trading futures, you can also employ leverage to boost your trade’s profit. For instance, suppose you wish to invest $1,000 and believe the price of ETH would rise. You decide to utilize 3x leverage, which, if you are correct, will treble your profits.

In this example, your initial margin is $1,000, allowing you to acquire ETH futures worth $3,000. If ETH increases by 5%, your position is now worth $3,150 and your equity is $1,150. $1,000 (starting margin) + $150 (unrealized gain) = $1,150

However, if the price of ETH decreases, you lose part (or all) of your trade equity. Suppose the price decreases by 5%. The trade is incurring a loss of $150, and your equity has decreased from $1,000 to $850.

Fortunately, the trade’s maintenance margin is likely set at 50% of the initial margin, giving you a $500 cushion before a margin call. You have a cushion of $350 remaining before reaching your maintenance margin. $850 in remaining equity minus $500 in maintenance margin equals $350.

Trade ETH futures on BTCC Now: https://www.btcc.com/en-US/trade/perpetual/ETHUSDT

BTCC Guide:

• How to Trade Crypto Futures Contracts on BTCC
• BTCC Guide-How to Deposit Crypto on BTCC?
• What is Crypto Futures Trading – Beginner’s Guide
• What is Leverage in Cryptocurrency? How Can I Trade at 100X Leverage?
• BTCC Review 2024: Best Crypto Futures Exchange

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