Posted 12 months ago | by Ben Armstrong
Learn More About Crypto Futures!
Futures are derivative contracts that make it much easier to trade financial instruments, and now there are lots of ways to trade cryptos with futures contracts. In addition to making it much easier to trade quickly, futures often offer leverage that can be used to magnify the direction of the market.
There are many new crypto-based futures exchanges, and Phemex is worth a look. Unline many crypto-focused futures exchanges, Phemex is working to expand into other markets, like commodities, and FOREX.
There is no reason why crypto users should have to re-enter the fiat system if they want to speculate on the direction of fiat currencies, and Phemex has taken the initiative to bridge the gap. While it currently does not offer full FOREX trading tools, it does have futures contracts on select commodities, and a number of popular crypto pairs.
Crypto Futures Make Trading Easy
Trading crypto on an exchange usually means taking on some sort of risk, as you will be depositing your cryptos as a basis for your trading activities. Whether or not your exchange actually says you are trading in futures, you are in fact trusting that the exchange will deliver token back to you when you decide to redeem them.
If you are trading specifically for the purpose of making profits, you may want to consider trading with a futures exchange, like Phemex.
Not only does the exchange offer crypto futures trading with a solid platform (it gets great reviews), you can also use leverage when you want to take on additional risk (which means much higher profits if you are correct). Additionally, Phemex has great trading tools, like stop-loss orders, so you can employ advanced trading strategies.
How do I Make a Return with Futures?
Like any kind of trading, futures require that you choose the correct market direction, and then put money at risk.
Unlike other kinds of trading, you will be paid out in a given currency, or crypto. While futures were originally used to buy or sell goods or securities at a future date, the vast majority of crypto futures are 'cash settled', which means you will be paid in the account currencies that the exchange offers.
For example, Phemex accepts BTC for deposits, and also will send BTC to your wallet if you want to withdraw value from the exchange. This means that if you make profits with Phemex, the contracts are essentially paid out in BTC.