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How To Earn Money From Future Trading In Cryptocurrency

Can I really make money from cryptocurrency?

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Trading is an art, and everyone begins their adventure with spot trading. However, as you develop your trading abilities, you realize that you may increase your profits and reduce your dangers using some cutting-edge tactics.

However, futures markets can be utilized for short-term trading purposes, such as:

short selling an asset, or In a trade, use more leverage.

Trading futures is, in my opinion, the most lucrative alternative if you’re considering starting to trade on Binance. However, this choice has considerable risk, so assume personal accountability.

In one article, I’ll provide all the information you require concerning trading Binance Futures contracts.

In general, there are two primary trading strategies:

Long:

  • Buy at dip
  • sell higher

Short:

  • Sell at higher
  • Buy low

Binance has several advantages over competing exchanges.

  • the most trading pairs
  • minimal commissions
  • consistent terminal work
  • Grid trading is bug-free.
  • Leverage up to 125 times.

On Binance, you can trade using both isolated and cross margins.

Cross-margin is riskier than isolated margin. Cross-margining allows you to pay for all trades with your whole futures wallet balance at once, which means that if one trade fails, all other contracts may be required to be closed.

For example, if your wallet has $1000 and you initiate a $100 transaction, you risk just the $100 that you’ve put into it, not the $1000 that you’ve put into your wallet.

To reduce your trading risks, putt stop loss and take profit orders, including slippage protection (marker price and actual price).

Additionally, Binance does have a “close all open trades” option, which is crucial due to the volatility of the crypto market.

In addition to those above, this exchange also offers grid trading, limit orders, stop-limit orders, and other variants of tools that help traders manage risk.

You may rapidly buy long (a contract to increase) and sell short using the Binance Futures terminal (a deal to go down).

Downside trading is quite practical since you can choose x1 leverage and establish a short position without using leverage, for instance, if you don’t want to utilize leverage as it is performed in the margin wallet.

Use of Hedge Mode

Using Hedge Mode, you can simultaneously hold long and short positions on a single coin.

What would be the benefit of doing so? Let’s imagine you hold a long open position because you believe the price of Bitcoin will increase over the long run.

You can also want to simultaneously enter short bets on shorter time frames. You can accomplish this with the help of hedge mode, in which case your rapid short bets won’t impact your long position.

One-Way Mode is the standard position setting. This implies that you cannot initiate both long and short bets for a single contract simultaneously.

To attempt it would result in a tally of 0 for all positions. As a result, to take advantage of Hedge Mode, you must enable it manually from settings.

Final Thoughts

Futures trading is derivatives that bind traders to purchase or dispose of an asset at a later date. However, perpetual futures contracts do not have a settlement date, unlike ordinary futures contracts.

However, for novice traders, derivatives can be complicated, so it’s critical to comprehend how these contracts function before assuming financial risk.

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Kamran Karim

Kamran Karim

Inspirational, Futuristic & Innovative | CEO of The Binary Geeks & Yachtefy.com | Author of “What to Expect Before Developing an App.” kamrankarim.com