The leading cryptocurrency exchange Binance has paved the way for the crypto trading space by introducing innovative features and opportunities. With over 2000 different assets listed on the leading exchange, millions of traders and users buy, sell, trade, and use cryptocurrencies on the Platform.
The platform has served a pivotal role in the acceptance and emergence of cryptocurrencies. With speculations of a decentralized ‘trading’ platform, Binance continues to offer an avenue of opportunities to its users. In light of recent events, Binance has launched a futures trading platform for Binance futures.
Their futures trading platform will serve crucial for traders who want to use leverage to open various long or short positions on Binance to earn profitable income passively. Additionally, the Binance spot trading platform is famous for providing billions in profits for millions of traders through the volatile price movements. However, with the introduction of Futures trading, Binance users and traders can now hold long or short positions and participate in market movements and trends accordingly.
Binance Futures – Supported Cryptocurrencies
Binance spot trading supports 1000s of cryptocurrencies today; however, the Binance Futures will be limited to the following cryptocurrencies pairs with leverage trading up to 125X
And some more of the more notable cryptocurrencies.
Binance Futures – Why?
Future trading is known to offer a quick and cost-effective way to trade commercial and commodity markets in conventional trading space. Multiple traders rely on moderated contracts that define a set of instructions for a later date. Traditional traders depend on future trading to glorify their portfolio by substantially mitigating the risk of aggressively changing markets.
The Volatile Crypto market often experiences aggressive price movements; however, today, traders can use the Binance futures trading platform to integrate their future trading skills into the crypto industry. One notable cryptocurrency futures are the Bitcoin futures.
Users can hedge their positions to mitigate their risks and protect their portfolio during aggressive market changes and open leveraged positions without owning the assets. With Bitcoin continuously experiencing vigorous market movement, this makes it the perfect candidate for futures contracts. Interestingly, Bitcoin futures are known to be leveraged up to 125x.
How does Cryptocurrency Futures Work?
Cryptocurrency Future or Crypto Futures work on the mechanism of settlement which allow traders to buy or sell their assets at a predetermined price at a specific point in the future. Simply put, the Buyer or Seller agrees to sell or buy their assets upon their contract’s expiration.
Interestingly, Last week, Binance has also introduced perpetual contracts for Bitcoin, check our news article to gain an insight into the perpetual contracts and what it means for traders.
Use Binance Futures
To dive into Binance Futures, users should first create a . Although easy, the verification process can slow down the process to ensure optimal impenetrable security. Check our article on how to deposit on Binance.
Once you deposit your funds into your Binance account, you will have the option to transfer them to your independent future trading wallet. Navigate to the Futures button on top of the navigation menu to access the interface for Futures trading. Note: To start futures trading, users should transfer some amount of USDT into their Futures account.
Once you’re welcome by the futures trading interface, you can place trades with different leverages up to 125x on various currencies. Interestingly, users can adjust their leverage with a simple slider located on the top left corner of the futures trading interface.
Trading Bitcoin Futures on Binance Futures
Traders use a set of hybrid market indicators and strategies to determine different trends in the market. Traders use different techniques to anticipate the prices of various cryptocurrencies. For example, Traders often use long positions in anticipation of bullish trends for specific cryptocurrencies. Moreover, Traders also use short positions in anticipation of bearish trends for specific cryptocurrencies. Binance continues to emphasize the seamless trading experience for users.
Binance allows users to trade Bitcoin futures with ease. While Binance only allows trading Bitcoin/USDT up to 125x leverage, and other cryptocurrencies up to 75x, interestingly, Investors and Traders use the following four types of orders to open long or short positions with respect to margins and leverages.
The four types of orders:
Users can choose to buy assets at a specific price. Users can specify the price and set a limit order at which they want to sell or buy. Users have also the choice to set a specific order quantity they can do this by entering the desired amount of crypto-asset they want to buy in the Order Quantity tab. As soon as your preferred crypto-asset reaches the specified price, Binance will have an order to buy / long. Note: The amount you input is dependent on the specified leverage.
Market orders are primarily used to buy crypto-assets at spot prices. Navigate to the Order Quantity Tab, specify your order quantity with respect to the margin set, and that’s all.
Traders often use Stop-limit orders to facilitate the stop-loss mechanism. Navigate to the Order Quantity tab, specify your stop price, your price, and order quantity.
Take-Profit Limit Orders
Traders implement Take-Profit Limit orders to specify the price at which they prefer to collect profits. You can navigate to the Order Quantity tab and specify your trigger price, price, and order quantity. Once your trigger price is established, your order will be placed in the Binance order books.
After your position is opened, you can actively monitor to gain insight into the status of your orders. Users can open long or short positions through the implementation of standard market orders to track the status.
Binance is the leading cryptocurrency exchange which is secured by impenetrable protocols and systems. The Platform has well-thought-out policies to protect billions of dollars in users’ funds. Binance Futures trading will continue to prosper into greater avenues with opportunities allowing traders and users to earn profitable passive income.