Cryptocurrencies are volatile and come with a risk. Many traders try to mitigate it using a simple strategy of buying assets at a lower price and selling at a higher price. This strategy proves inefficient often when the price continues to rise after you have sold it. Using Futures, one can avoid such inefficiencies.
Futures is a type of agreement where Buyer and seller agree to trade in an asset at a future date at a predetermined price mentioned in the Futures contract. This prevents both the parties from excessive price swings.
But, if we have good information on how the market is expected to move in future, we will almost always make a winning deal. With all popular crypto exchanges now offering futures trading options like allowing users to bet on the future price of a cryptocurrency, crypto signals are increasingly being used to place such bets by the traders. It allows investors and traders to speculate on the price without having to actually hold a cryptocurrency.
If your crypto signals predict a positive future for your holding, you can choose to not enter a loss making futures contract while if it says the ground is a bit shaky in the near future, you can always secure yourself with a futures contract. If the market seems not so favorable in the short term to the investors holding the digital asset, they can take a short term position on that asset i.e. they sell the asset now, with a plan to buy it in future. Such a deal can be done using futures contracts to ensure profitability. So, whatever be the case, crypto signals got you covered helping you make informed decisions.
With their obvious benefits of bringing stability to the cryptomarket and decreasing the risk of the investors, futures trading is becoming quite popular among the traders. Thus, a lot of trading platforms are offering crypto futures trading, of which the ones offered by Binance and Bitmex are the most popular as of now.
How to start trading in Bitmex and Binance Futures?
There are a lot of crypto signals providers who are offering crypto signals for futures trading. Here’s a list of a few:
- AltSignals: It provides both traditional as well as trading signals for futures exchanges. It covers a lot of exchanges including Bitmex and Binance Futures. With their expertise in financial analysis, they provide accurate predictions on market movement facilitating their subscribers to trade in futures contracts.
- MyCryptoParadise: Surely one of the best crypto signals providers in the market right now, they even offer futures trading signals for many exchanges including, but not limited to, Binance Futures. Its 9 signals a day strategy is surely far ahead of what its competitors are offering.
- Margin Whales: It is mostly preferred by users for Binance Futures trading although they offer their services for Bitmex as well. Their only downside is that they don’t support trading bots but their friendly support team more than makes it up for it.
Crypto trading in Futures contracts is similar to futures commodity trading except for the fact that here you speculate on cryptocurrencies. It comes with similar benefits and risks as a normal futures contract. Thus, it is always a wise decision to choose a crypto signals provider only after researching on its past performances for various exchanges. If done right, futures trading in cryptocurrencies can reduce the only factor that goes against dealing in cryptocurrencies i.e. their market volatility.