You've probably been hearing a lot about Bitcoin Futures lately. Maybe you're even thinking of trading them yourself. But what are they, and what do you need to know before you get started?
In this article, we'll break down the basics of Bitcoin Futures contracts, including what they are, how they work, and the risks involved. We'll also show you how to get started trading them yourself with our Trading Application "Balian".
So keep reading, and by the time you're done, you'll be ready to start trading Bitcoin Futures fully automated with our Trading Bot "Balian"!
What Are Bitcoin Futures?
You've probably heard of Bitcoin and other cryptocurrencies, but what are Bitcoin Futures?
Bitcoin Futures are a type of derivative contract that obligates two parties to exchange an asset—or a cash equivalent—at a predetermined price on a future date. When investors buy and sell Bitcoin Futures contracts, they are speculating about BTC's future price.
How Do Bitcoin Futures Work?
Do you have any questions about Bitcoin Futures? Let's go over the basics.
A Bitcoin Future is a type of derivative contract that obligates two parties to exchange an asset—or a cash equivalent—at a predetermined price on a future date. When investors buy and sell Bitcoin Futures contracts, they are speculating about BTC's future price.
Bitcoin Futures contracts are often used to hedge risk—in other words, to protect themselves against potential losses if the price of Bitcoin falls in the future. For example, imagine that you're a farmer who has agreed to sell your crops in six months' time. You might want to enter into a Bitcoin Futures contract to ensure that you're able to sell your crops at the agreed-upon price, even if the price of Bitcoin falls between now and then.
What Are the Benefits of Trading Bitcoin Futures?
So what are the benefits of trading Bitcoin Futures?
There are three main benefits:
1. You can use Futures to speculate on the future price of Bitcoin.
2. You can use Futures to hedging your risk on Bitcoin investments.
3. You can use Futures to take advantage of price arbitrage opportunities.
What Are the Risks of Trading Bitcoin Futures?
So, what are the risks of trading Bitcoin Futures? Like any investment, there is always the risk of losing money. When you buy a Futures contract, you are essentially betting that the price of the asset will go up by the time the contract expires. If it doesn't, you could lose money.
Another risk is that the market could crash. If enough people sell their Futures contracts at once, it could cause the market to collapse, which would result in large losses for investors.
Finally, Bitcoin is a very volatile asset and its price can go up or down very quickly. This means that it's possible to make or lose a lot of money in a short period of time if you're not careful.
How Can I Trade Bitcoin Futures?
So, how can you trade Bitcoin Futures contracts? The process is actually quite simple. First, you need to open a Futures Account at Binance. If you already have a Binance account, click [LogIn], or click [Register] to create an account.
Next, you'll need to deposit some funds into your account. Various options are given to deposit either FIAT-money or cryptocurrencies into your account.
Once you have your account set up and funded, you must transfer funds e.g. USDT or BUSD from your Spot account into your Futures account, and then you can begin trading Bitcoin Futures contracts.
How Can I Use the Trading Application "Balian" to trade Bitcoin Futures for me?
So, how can you purchase and connect the trading application "Balian" with your Bitcoin Futures account? Once you have signed up or logged in to Binance open Futures account. After you have opened the Futures account, you need to fund your Futures account.
Next, you visit our store to purchase the 3 months subscription of our Trading Application "Balian" and after the payment transaction is completed it is time to connect the Trading Application with your Futures Account.
In order to connect your Futures Account with the Trading Application, you have to create new API Keys and submit these keys via our form that is sent to you after completed payment. Read here how to create an API Key with your Binance account in 3 simple steps.
When your API Keys are submitted, Shaman Trading is connecting the Trading Application with your Futures Account, and it's trading fully automated for you. You are going to be notified via e-mail within few hours when the Trading Application is active.
Let’s summarize
When you want to start trading Bitcoin Futures with the Trading Application "Balian" you have got to.
1. Sign up or Log in into your Binance Account
2. Open a Binance Future Account
3. Fund your Binance Future Account
4. Purchase Trading Application "Balian" specialised for Bitcoin Futures
5. Create and submit your API Keys
6. Lean back and let "Balian" trade Bitcoin Futures fully automated for you
Disclaimer: This article is for informational purposes only