In fact, the operating mechanism of Bitcoin futures is the same as that of traditional financial asset futures. By predicting whether the price of bitcoin will rise or fall, speculators choose to buy long-term or short-term bitcoin futures contracts. Bitcoin futures are also a futures contract that can be used to speculate on changes in the price of Bitcoin without the need for participating investors to actually hold Bitcoin. After learning about bitcoin futures trading, let’s return to the topic, how to trade bitcoin futures? The following editor has sorted out the bitcoin futures trading tutorial for you. I hope that through this article, investors can have a preliminary understanding of how to trade bitcoin futures.
First give an example:
Suppose Wang owns one bitcoin, which is worth $18,000. He predicts that the price of Bitcoin will fall in the future. To prevent the asset from being damaged in the future, he chose to sell a bitcoin futures contract at the current price.
When the settlement date came, the price of Bitcoin fell, as did the price of the Bitcoin futures contract. Wang chose to buy back a bitcoin futures contract.
Assuming that the Bitcoin futures price on the settlement day is $16.000, Wang Wu earned $2.000 by doing this. By selling high and buying low, Wang Wu avoided losses due to a drop in the price of Bitcoin.
This is just a very simple example, but in the real trading market, the situation is much more complicated. Investors are advised not to invest blindly.
Bitcoin Futures Trading Tutorial
First, you need to open an account on the 8v exchange (if you don't have an account, you can click to register an account)
To trade Bitcoin contracts, simply create an account and pre-deposit a small amount of funds. Here is a step-by-step guide to start trading a Bitcoin futures contract:
1. Create a 8V account and enable 2FA (two-factor authentication). If you already have an account, be sure to enable two-factor authentication in order to deposit funds into the contract account.
2. Buying BUSD, Tether (USDT) or other supported cryptocurrencies for contract trading. The most convenient way is to buy with a credit card.
3. Go to Bitcoin Contracts and select the type of contract you want to buy. Choose a coin-margined contract or a U-margined contract, and whether it is a perpetual contract or a contract with an expiry date.
4. Choose a reasonable leverage multiple. You can do this on the right side of the [Cross Position] button in the trading user interface. Remember: increasing leverage increases the risk of liquidation, even for small price movements.
5. Please select the quantity and type of the order, then click [Buy/Long] or [Sell/Short] to open a Bitcoin contract position.
Through the above introduction, I believe that everyone has a certain understanding of bitcoin futures. In fact, bitcoin futures are standardized contracts with the bitcoin price index as the target, that is, futures contracts.