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Gate.io Blog How To Invest In Bitcoin Futures
Crypto Spotlight

How To Invest In Bitcoin Futures

07 September 10:24




Bitcoin Futures, like other futures, enable you to predict the price of the digital asset and hold a position based on that. However, there is no BTC involved in the transaction since you don’t own the assets, and the settlement is done with cash.


With various platforms offering Bitcoin Futures contracts, you can opt for any of them based on how they facilitate them and their advantages.

Gate.io is a crypto coin exchange that provides Bitcoin Futures trading options with additional advantages for the traders, such as a futures bonus which you can use to invest in the Bitcoin contracts.

How To Start?

To start trading, first, open an account with a futures broker who can enable you to indulge in futures trading. These brokers are usually known as futures commission merchants or introducing brokers.

Before you dive into it, understand how futures trading works. Know the process, the margin requirements, how you can close and open positions, etc. Depending on the platform, these are variables that would differ.

Build an action plan based on the research you do on the market trends. Know the purpose of every trade you make while ensuring your larger purpose behind the plan is met. Once you’ve researched the market trends, you will understand the technical and fundamental indicators that can trigger a buy or sell signal. While doing all this, do not forget to measure the risk to reward ratio.

Choose a broker/platform to start. In your initial stages, experiment with different platforms and brokers. This way, you will understand the pros and cons of these and what works the best for you.

Gate.io is one such platform that provides Bitcoin Futures trading and also has other variations of the futures contract that can benefit you and maximize your profits.

One thing to remember, though, is that some of them might be regulated while others unregulated, and the risks in the latter would be higher. Try to select the one that can give you a demo/trial account where you can experiment/simulate your plan. Based on the results, you can also understand the broker/platform while also understanding the good and bad aspects of your plan.

Once you’re comfortably able to go through these processes, it’s time to start trading with Bitcoin Futures.

How Does It Work?

1.Set up an account for futures trading.

2.Ensure that you have minimum collateral in your funds account to indulge in futures trading.

3.Do your analysis, predict the price and date and then obtain the leverage you need with your collateral.

4.Now, go live with your position.

Conclusion

Bitcoin Futures are beneficial trading options for seasoned traders who know how to analyze and predict prices and dates. However, for novice traders, it is riskier since the prices of Bitcoin are highly volatile. Hence, do your research, indulge in a few trials and simulations before diving into this.

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