What are crypto futures?

Futures trading refers to a method of speculating on the price of assets, including cryptocurrencies, without actually owning them. Like commodity or stock futures, cryptocurrency futures enable traders to bet on a digital currency’s future price. Needless to say, Bitcoin futures are currently the most popular type of crypto futures contracts.

How to gain exposure to cryptocurrency futures?

You can also gain exposure to cryptocurrency futures by trading cryptocurrency ETFs. There are several Bitcoin ETFs that are linked to Bitcoin futures. The main advantage of trading Bitcoin futures contracts is that they offer regulated exposure to cryptocurrencies. In a volatile ecosystem with wild price swings, that is a significant point.

Is it safe to trade cryptocurrency futures?

As with any form of trading, there are considerable risks that should not be ignored. Both institutional and retail traders prefer cryptocurrency futures thanks to their convenience and lower risk of hacking attacks than the spot market. Crypto futures are still more popular than crypto options, which represent another type of derivatives.

What are bitcoin futures and how do they work?

Futures allow investors to hedge against volatile markets and ensure they can purchase or sell a particular cryptocurrency at a set price in the future. Of course, if the price moves in the opposite direction a trader wishes, they may end up paying more than the market price for bitcoin or selling it at a loss.