Futures trading is a financial tool that allows one to bet on future assets’ prices and benefit from it. It does not necessarily involve purchasing the asset; instead, the parties buy derivative contracts. A contract indicates the asset’s price and the expiration date when settlements between two parties must occur.

Crypto futures trading is an advanced tool used by experienced investors and traders. Since crypto prices are highly volatile, it is possible to make a fortune on futures trading. However, the risk of losing everything is high. That is why before starting this type of trading, one should be aware of the main factors that matter in trading:

• The news background
• The situation in the crypto market and global economy
• Technical peculiarities of the project you invest in
• Risk assessment
• Ability to read and explain crypto charts
• Finding patterns and indicators of the asset
• Learning the history of the asset.

Another essential thing in crypto futures trading is finding a good crypto futures exchange. Here are the most common platforms where you can make derivative contracts with crypto:

1. Binance
2. WhiteBIT
3. ByBit
4. Kraken.

These crypto futures exchanges are the most reliable in the market. Each of them offers different conditions for trading and the different size of leverage that can be used in crypto futures trading. Leverage means borrowed funds from the exchange to multiply your initial holdings with the purpose of receiving a higher income.

Where can I practice crypto futures trading?

Futures is a difficult tool to comprehend for a beginner trader. That is why it is necessary to have some practice before investing in real markets. We recommend registering on the WhiteBIT crypto platform and opening a demo account. Demo trading involves using demo tokens, which can not be cashed out or deposited. You can read guides and learn crypto charts, also introduced on the WhiteBIT platform, and follow those guides in your demo account. Thus, you will receive the necessary skills and confidence. Also, try different leverage sizes in demo trading, and see how it affects the result.