Understanding Cryptocurrency Futures Trading – Beginner Guide
Cryptocurrency futures trading allows traders to speculate on the future price of digital assets without actually owning them. It is popular among advanced traders because it offers leverage and the ability to profit from both rising and falling markets.
In futures trading, a trader opens a long position if they expect the price to rise, and a short position if they expect the price to fall. One important concept in futures markets is the funding fee. This is a small payment exchanged between long and short traders at regular intervals to keep the futures price close to the spot price.
Risk management is very important in futures trading. Traders should always use stop-loss orders, avoid high leverage at the beginning, and never trade with money they cannot afford to lose.
Before starting futures trading, beginners should first understand spot trading, market volatility, and basic technical analysis. Learning first and trading later is always the safer approach.