A Comparison of Crypto Exchanges for Futures: Which One to Choose?
Crypto futures offer a lucrative way for traders to benefit from the market’s future movement. A trader can buy or sell assets at an agreed-upon price and date in the future, providing tremendous profits with up to 100x leverage. Over time, this form of trading has become widespread as it allows traders momentary exposure without owning any coins.
How do crypto futures work? As an example, if an investor purchases futures on Bitcoin for $50,000 with an end date of one month from now and the price of Bitcoin rises to $60,000 by then – they can sell it for a profit margin of $10,000. Despite this, if the cost of Bitcoin drops to $40,000 – investors would have no choice but to forfeit their contracts for a loss of $10,000. It is essential to note that with up to 100x leverage offered by these agreements, potential monetary gains and losses are intensified substantially.
Services for Crypto Futures Trading
With so many websites allowing futures, it can be hard to pick which one is right for you. To help make your decision easier, we offer top platforms and how their key features stack up against each other:
- BitMEX is an acclaimed trading platform, particularly futures on Bitcoin. This website provides up to 100x leverage, a selection of tools, and sophisticated order types – however, it has been scrutinized due to its costly fees and intricate interface.
- If you’re looking for a top-tier futures platform, look for Binance Futures, where you can get up to 125x leverage and low fees. On top of that, our intuitive interface is designed to make your trades as smooth as possible.
- Bybit is an innovative futures platform that provides Bitcoin, Ethereum, and Ripple agreements with up to 100x leverage. Its user-friendly interface makes it effortless for both novice and experienced traders alike to get the most out of their trades, managing risk effectively while enjoying low fees.
- OKEx – offers 100x leverage, low fees, and powerful tools; download the mobile app to trade on the move.
- Huobi Futures – cutting-edge interface provided by one of the most established platforms that offer a wide range of futures agreements. With leverage up to 125x, ultra-low commissions, and an intuitive design that caters to even novice users.
- WhiteBIT. The cryptocurrency exchange offers 20x leverage and perpetual deals – a renowned type of futures agreement whereby there is no predetermined expiration date. Since these agreements have an in-built funding mechanism, they usually remain close to the spot rate. The idea here is that users can either make or receive payments based on their open positions during certain times; should one trader possess a long position and hold a positive rate, he/she would need to pay out to another with a short position – vice versa for those with negative rates.
It’s critical to conduct adequate research and comparison before settling on a trading platform to guarantee that you pick the ideal option for your specific situation. Your ultimate decision will mainly depend on your style of trading, preferred asset, and experience level.