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What you should be aware of regarding Binance Futures Trading – A Step-by-Step Guide

Binance is known as one of the most popular cryptocurrency trading platforms that allow traders to trade hundreds of crypto. The exchange was initially a spot-trading exchange which allowed traders to gain money if prices increased The exchange has since expanded its services – check this out!

What is Crypto Futures Trading?

Binance Futures Trading is a new sensation, allowing traders to multiply their profits and earn money by trading altcoins up or down. Like CFDs, one can open both short and long positions on the platform and profit as prices fluctuate.

Cryptocurrencies’ prices do not always move up. Due to the extreme level of volatility, prices do undergo extreme downward price movement. Binance Futures allows traders to earn money by speculating on the price dropping.

The platform also permits traders to make use of leveraged trading. In this scenario, traders will only need to pay an amount of money to open large positions. With a leverage as high as 1:100, traders can maximize their returns by trading 100x the money that are in their account.

Opening a Futures Account

Trading futures contracts on the market for cryptocurrency is simple. You’ll need to create a Binance regular account first, then a Binance Futures Trading Account to be able to access the Futures interface. Because all futures contracts in the platform are traded in Tether, you will have to deposit some Tether to start trading.

Binance’s futures interface offers all the necessary charts to help you make a forecast on the value of various cryptos. The interface also comes with a depth chart, an order book and all of the latest transactions on the market.

The traders can also get information on all transactions and trading activities. On the other hand, it is possible to track the performance of a trade and analyze all trades executed over the years.

Market Orders are supported

Crypto futures trading platforms give traders the option of using various market orders in order to maximize profits on the market for cryptocurrency. The futures trading platform can support Market Orders as well as Stop Limit Orders and Stop Market Orders.

Cryptocurrencies supported

As a leading player in cryptocurrency trading, Binance supports a wide array of cryptocurrencies that traders can also use in futures trading. The platform also has expanded its range of trading pairs besides Bitcoin.

Futures traders can leverage pairs like:

Ethereum (ETH) / USDT

Ripple (XRP USDT)

Binance Coin (BNB) USDT

Bitcoin Cash (BCH) / USDT

Litecoin (LTC) USDT / Litecoin (LTC)

Ethereum Classic (ETC / USDT)

Monero (XMR) / USDT

Binance Futures Trading Platform Benefits

A large volume of transactions and a high level of liquidity make it possible to trade and close positions easily at desired price points. Binance is also a trusted name in crypto trading. It adheres with the best practices in the market as well as providing the best security.

Advantages of Trading Futures on Binance

One of the biggest drawbacks of Binance as an exchange for futures is that traders must first put down Tether to trade. The platform is built on the controversial Tether Stablecoin.

Bottom line

Bitcoin futures trading platform offers an ideal way of speculating on the cryptocurrency price movement as well as the possibility of hedging positions and increase risk management as a way to secure a crypto portfolio.

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