5 Steps to Start Crypto Futures Trading the Right Way


As cryptocurrencies such as Bitcoin and Ethereum have grown in popularity in mainstream media, have found their way into exchanges. Crypto futures trading differs from spot trading in many ways. Spot tading welcomes those who are risk-averse to buy digital assets and hold them for a long term, while futures trading attracts traders interested in taking further advantages of market movements. Essentially, crypto futures trading allows investors to speculate on the future value of cryptocurrencies.

Why Invest in Crypto Futures?

Investing in cryptocurrency futures offers more opportunities and potential to grow a portfolio. In short, the leverage available in futures trading can easily boost a portfolio multiple times in a single trade.


Another reason to participate in futures contracts is hedging. Protecting a portfolio can be challenging, especially with cryptocurrencies. Futures contracts are a powerful line of defense for any portfolio and can act as a hedge when an investment goes in the wrong direction.


Unlike spot trading, which benefits investors when the price is rising, futures traders can profit even when the price is falling by shorting the market. It provides investors with greater liquidity and the freedom to speculate on the near-term price movement of an asset.



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5-Step Guide to Get Started!

Crypto futures trading is a challenging job for almost everyone. It takes a lot of time to understand how the market changes and adjusts over time, how external factors affect the market, the motivations of people to participate, and more.


With so much information to digest and so little relevant experience or knowledge, it’s no wonder that many first-time traders struggle to navigate and end up suffering losses. This is why it is crucial to follow a strategic approach to every crypto futures transaction.


1. Find a Right Way to Trade

Finding ways to trade is more than just copying a highly profitable strategy found on YouTube or social media. An effective trading approach must be individualized to fit your psychological profile, lifestyle, risk tolerance, and long-term goals.


To find the best one for you, follow these points:

  • Identify your trader personality.
  • Determine your risk tolerance and long-term financial objectives.
  • Define trading parameters that match your personality.
  • Evaluate the performance of each parameter and how to deal with them.
  • Make adjustments if you run into problems.


2. Develop a Trading Strategy

A trading strategy can help you better manage risk and help improve trading consistency. When developing your trading strategy, you must detail how you will enter and exit positions, including entry and exit indicators, position sizing, and stop-loss placements.


The benefits of having a trading plan are many, ranging from reducing stress throughout the trading day to making fewer trading mistakes. Traders must pay more attention to their trading habits in order to make highly targeted developments and take trading seriously.


3. Essential Risk Management

The most essential part of trading is risk management. It starts by simply setting bounds for what you think is acceptable or unacceptable to lose in a trade.


When trading crypto futures, every coin should be treated 100x its actual value. If your account is worth $1,000, you should be highly averse to losing more than $10.


Having a long-term perspective requires traders to approach each trade with a clear strategy. Winning in small doses over time is crucial to building a proper account.


Risk management strategies can help protect capital, achieve realistic expectations, and avoid letting emotions cloud your trades.


4. Trade with Full Responsibility

Emotional and compulsive trading is considered a form of gambling behavior that can end trading careers. There are various ways to mitigate these psychological traits, such as minimizing leverage, reducing the number of traders executed in a given period, setting conservative goals and objectives, and never trading with money you cannot afford to lose.


Losses can build up quickly and damage your funds, which is why letting losses go and avoiding “lucky runs” is a responsible approach to futures trading.


5. Continue Education

Regarding Bitcoin or cryptocurrencies in general, it represents a new asset class, so people are talking about it and working on improving it every day. This industry is constantly evolving, which is what makes it so exciting.


Keeping up with the blockchain industry and constantly looking for ways to improve your trading skills are necessary to remain on the edge of success. Education will always help generate more decisive insights into subsequent market movements, allowing you to plan for what’s to come.



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Where do I Start to Learn More about Crypto?

A great place to start learning about cryptocurrencies and trading these assets is right here at BTCC Futures!


There are a large number of useful articles to find. You can start with entry-level information and progress through more experienced and nuanced material at your own pace. Traders are always welcomed to register for an account at BTCC.com.

Register now to begin your crypto journey

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