Category Archive : Crypto Exchanges

bitcoin trading futures

Introduction To Bitcoin Trading Futures

bitcoin trading futures

The futures are an agreement between two counterparties to buy and sell a specific amount of an underlying crypto at a specific future price on a specific date.

Bitcoin is the largest cryptocurrency by market cap. Like other cryptocurrencies, it’s also incredibly volatile. In March 2020, for instance, Bitcoin’s price practically halved in just a few days as markets tumbled amid fear about the pandemic. By early September, it had rebounded from about $4,000 to highs of $12,000—before promptly crashing again, dipping under $10,000.

Spot trading—the practice of buying and selling Bitcoin—forces traders to exchange cryptocurrencies at their current prices. But what if there was a way to lock in that price of $4,000, picking up the Bitcoin a couple of months later? So even if Bitcoin’s price hit $12,000, the counterparty would have to deliver the Bitcoin purchase with $4,000.

There is! It’s called a futures contract. A futures contract is an agreement between two traders that obligates a trader to buy or sell an asset at a specific time, quantity and price. For example, you might enter an agreement in mid-March to buy one Bitcoin for $4,000 for August 30. You could also be on the other side of the deal, agreeing to selling a Bitcoin for a fixed price. If you’re a buyer, you want the trading price of Bitcoin to go up, as you will be able to buy the cryptocurrency at below market value, while sellers want the opposite, profiting if Bitcoin were to decrease in price.

The reason why you might trade Bitcoin futures as opposed to just, say, buying lots of Bitcoin worth $4,000 at the time, is that you don’t have to hold them yourself. 

Some crypto exchanges, such as OKEx, have lower trading fees for futures contracts, which means that traders can squeeze a bit more out of their accounts by using futures.

When entering a futures contract, there are three ways a trader can exit their position: offsetting, rollovers and expiry. Offsetting is the most common, and occurs when a trader creates another futures contract with an equal value and size, making their effective obligations zero as they balance out. Rolling over is done by offsetting a position, but with an expiry date that is further into the future. Expiry is what you’d expect: it’s when a contract reaches its end date and the parties who hold the contract buy or sell at the agreed price.

Another trading method for futures is hedging. Hedging is a way to reduce risk, which is useful for traders dealing with the volatility of cryptocurrencies.

Consider a trader who just bought three Bitcoin at a $10,000 a pop:

Hedging reduces a trader’s overall risk, although it does also limit their potential profits.

First things first: Bitcoin futures are—by their very definition—speculative investments. In its decade-plus year history, Bitcoin has proven that the only constant is price volatility, and while the famed cryptocurrency might be on a bull run now, there’s no telling what tomorrow might bring for Bitcoin. If you speculate at the wrong time, you could be left stranded with a future asset that just isn’t worth it.

There’s also something to be said for being an experienced investor. To successfully utilize futures, an investor needs to understand market behavior, have enough knowledge to pay attention to reasonable market predictions, and enough sense to discard unfounded claims. Ultimately, Bitcoin futures are speculative, but it is possible to leverage good information on a best effort basis. Doing that, however, is not exactly easy, so one might argue that Bitcoin futures are not very accessible for the average person.

The inverse of this is that Bitcoin futures are a great way of getting ahead of a positive market price. If an investor times it right, there could, at least hypothetically, be major profit to be had by leveraging the Bitcoin Futures market.

Bitcoin futures also—counterintuitively—don’t involve holding any Bitcoin whatsoever. Instead, it simply involves trading Bitcoin at a future, pre-agreed upon date, whatever the price at that time may be. Understanding the market might not be the most accessible task, but you don’t even need an ounce of technology to get involved, not even a Bitcoin wallet.

Bitcoin futures are settled with cash. Because no active Bitcoin trading takes place in a futures market, agreements are satisfied by trading at future, pre-agreed prices. Another oft-cited advantage of the Bitcoin futures market is that the possibility of settling in cash means that no complex software or technological expertise is really necessary in order to get involved in this arena.

One aspect of Bitcoin futures is margin trading, which essentially means that an investor only requires a percentage of a contract’s total in order to participate.

Leveraging 10-20% of a Bitcoin future means that an investment has both a high potential for profit, but also for a loss.

“Shorting” is an investment strategy that involves entering into an investment with the intention of generating profit by waiting for a drop in an asset’s market value. Futures and their value are in constant flux, so there are plenty of opportunities for a savvy investor to short on their Bitcoin future at any time.

For example, say the Bitcoin market is in the middle of a 2017-esque crypto winter. An investor can continue to repurchase their future, and then conceivably generate a profit for themselves.

Bitcoin futures are traded on several platforms. The top five by open interest at the time of writing are OKEx, Binance, CME, ByBit, and BitMEX.

The world of Bitcoin futures isn’t all fun and games. Taking on a contract is a serious obligation, and if it reaches its expiry date, the trader has a legal obligation to fulfill it.

Futures could lose you a lot of money, as you could be forced to buy Bitcoin way above its current trading price. Cryptocurrencies are one of the most volatile asset classes available; as with all cryptocurrencies, trading Bitcoin is very risky.

best cryptocurrency exchange

Best Cryptocurrency Exchange Begginer’s Guide

best cryptocurrency exchange

Do you want to buy crypto, and don’t know where to start? Here’s a handy guide to some of the best cryptocurrency exchange websites to help you find yor way.

Here is a list of some of the leading crypto exchanges as a starting point. It’s by no means comprehensive—there are literally hundreds of crypto exchanges, all serving different markets. Nor is it ranked in any way that represents a value judgment. Here a list of some of the leading exchanges out there, particularly for those new to the space.

Remember: Investing in crypto is still high-risk. You should only put in what you can afford to lose—if you choose to invest at all.

Before to begin, let’s have a quick recap of what an exchange actually is. They’re platforms (web sites and, usually, mobile apps) that let users buy and/or sell cryptocurrency, either through trading for other digital currencies or using traditional fiat assets. Some exchanges accept deposits via credit card, bank account, or wire transfer, while others trade in crypto only. Some offer withdrawals to your own wallets, while others do not, and have varying arrays of coins, fees, and apps.

There are also more complicated exchanges that enable users to trade in crypto derivatives, or decentralized exchanges (DEXs) that offer peer-to-peer transactions between users with no intermediary.

With all that said, let’s take a look at some of the biggest names.

Coinbase

What is Coinbase?

One of the most well-known and widely used exchanges in the world, Coinbase was founded in 2012 and reached record highs at the end of 2020, with $89B in trading volume. Because it lets users purchase popular coins like Bitcoin and Ethereum with fiat, Coinbase is often the starting point for most people on their crypto journey. Coinbase itself is more of a brokerage that also offers a virtual wallet. For more experienced users, there’s Coinbase Pro, a more traditional exchange where users can trade with each other using more sophisticated tools such as limit and stop orders.

What coins can I buy on Coinbase?

Coinbase has a total of 75 cryptocurrencies available across its regular and Pro exchange. These include the likes of Bitcoin (BTC), Ethereum (ETH), XRP, DASH, DAI, Tether (USDT) and Dogecoin (DOGE).

The exchange also shies away from listing some privacy coins; Zcash (ZEC) is not available to trade for Coinbase users in the UK, while Monero (XMR) is unavailable in any region, with CEO Brian Armstrong stating that regulators are uncomfortable with the cryptocurrency.

Perhaps unsurprisingly, Coinbase also doesn’t list rival exchange Binance’s BNB cryptocurrency.

What are the fees like?

You can check out a full rundown of Coinbase and Coinbase Pro fees here and here, but here’s a summary of the fees in general.

How easy is it to use?

The regular flavor of Coinbase is one of the easiest ways for anyone to buy crypto, as it supports fiat purchases using your bank or card details. Coinbase Pro is slightly more complex in that you have to create sell/buy orders, but that’s bread and butter stuff for any exchange, and is one of the first things that neophyte traders learn. The fact that you can transfer assets from Coinbase to your Coinbase Pro account is another handy bonus.

Does it have an app?

Coinbase actually has three different apps, with different functions and target users in mind. Coinbase (for iOS and Android) lets you buy crypto with fiat, while storing them in an in-built wallet. Coinbase Pro, also available on iOS and Android, unlocks the more advanced trading options with buy/sell orders. Coinbase Wallet (available on, you guessed it, iOS and Android) is a third app that actually lets you possess your own coins, using your own private key. This is far better than storing your coins on an exchange wallet, and is always recommended.

 

Kraken

What is Kraken?

Launched in 2013, Kraken is now one of the largest exchanges in the world—the fourth-largest in fact. Available in 48 US states and 176 countries, it was founded by crypto enthusiast Jesse Powell, who was prompted to create his own exchange after the infamous Mt. Gox security breach.

What coins can I buy on Kraken?

Kraken currently sells 77 cryptocurrencies, including BTC, DAI, AAVE, ETH, DASH, and DOGE. Decentraland players can also buy and sell MANA, if they so wish. Brave Browser users can also trade their earned BAT (or snap up some more). Notable coins that are missing from the exchange include Binance’s BNB (spot a recurring theme?) and VeChain (VET).

What are the fees like?

Kraken charges fees for a number of different things. Here’s a general overview:

Kraken’s full set of fees can be found here.

How easy is it to use?

Kraken’s super-clean interface and layout make it one of the best-looking exchanges around. Beginners should find it less overwhelming than other offerings, with fewer charts, graphs and buttons cramming the screen. As with most other exchanges, you’ll need to provide some information and official ID if you want to do anything more than the most basic trades, but once you’ve passed KYC checks, everything is clearly laid out and explained.

Does it have an app?

Kraken offers iOS and Android apps which provide users with a finger-friendly mobile version of the exchange. Having said that, the app isn’t available in certain countries, including the US.

 

Gemini

What is Gemini?

Gemini is another US-based crypto exchange. Headquartered in New York City, it was founded in 2014 by Tyler and Cameron Winklevoss. In 2016 it became the world’s first licensed ETH exchange. It prides itself on its security measures, which include private keys, password protection, and storing only a small percentage of the exchange’s Bitcoin supply online, to reduce the risk of losses through hacking.

What coins can I buy on Gemini?

Gemini has a total of 68 coins available to trade at the time of writing. These include heavy hitters like BTC and ETH, as well as DAI, BAT, AAVE, Cardano (ADA), Uniswap (UNI), Litecoin (LTC) and more. As with a few other exchanges on this list though. The exchange recently added Dogecoin, though some notable coins are missing from the list, notably Monero, VeChain and (yet again) BNB.

How easy is it to use?

Gemini is a clean-looking exchange, which makes navigation and use easy for beginners and pros alike. The signup process is relatively straightforward, and you’ll need to supply personal information like your name, address, email and more. You’ll also need to complete KYC (Know Your Customer) verification. Unlike other exchanges which accept things like driving licenses, Gemini will only accept valid passports. Proof of address requirements are less strict, and can include things like bills and bank statements.

Does it have an app?

Gemini has an app that puts the features of the exchange in a smartphone-friendly form factor. It’s available on both iOS and Android, and even the Samsung Galaxy Store too.

Binance

What is Binance?

Next to Coinbase, Binance is one of the most recognizable crypto exchanges around, and is the number one exchange in the world in terms of trading volume. Founded in China in 2017 by Changpeng “CZ” Zhao, the company moved its headquarters and servers from China to Japan ahead of China’s ban on crypto trading in 2017. Over the years its headquarters have moved, and it was, until early 2020, located in Malta. While it has lots of offices with staff in over 50 countries, its officially registered headquarters is now in the Cayman Islands.

What coins can I buy on Binance?

Binance lists hundreds of coins for users to trade, including BTC, ETH and LTC, along with, of course, its own native BNB tokens. The exchange is continuously growing its collection of listed coins too, and is often seen as the holy grail of exchanges for coins to get listed on, especially by enthusiastic coin communities. And yes, DOGE is also listed, as is Shiba Inu Coin (SHIB), which has found its way onto the exchange despite Binance CEO CZ describing it as “super high risk”.

That’s perhaps no surprise; Binance is adept at rapidly responding to emerging trends in crypto, and quickly listing the latest hot coin; one reason why its list of supported coins is so comprehensive.

What are the fees like?

Binance’s fees are some of the lowest in the industry, made possible, no doubt, by the fact that it’s the world’s best cryptocurrency exchange.

How easy is it to use?

The sheer size of Binance’s coin and trade offerings can be overwhelming for beginners. There’s a hell of a lot to take in, and it can be a bit confusing. Once you understand the basic concept of sell and buy orders though, it’s easy to use, though not quite as accessible as the regular version of Coinbase (which isn’t really a fully-fledged exchange anyway). Binance Academy is a best resource for newbies to learn about cryptocurrency exchange in general, as well as offering in-depth guides to all the trading options that Binance has to offer.

In 2021, regulators around the world turned their attention to Binance; the UK’s FCA issued a warning that the exchange was not permitted to undertake “regulated activity” in the country, while Japan’s FSA warned that Binance was operating without registering with the regulator. Italy’s securities regulator also warned that Binance is “not authorized to provide investment services and activities in Italy.”

While none of these actions amounts to a ban on trading using Binance, several payment channels to and from the exchange have been disrupted. UK banks including NatWest, Santander and Barclays have blocked fiat deposits to the exchange, while Binance has suspended SEPA Euro bank deposits. The Faster Payments service has also been disrupted. Practically, that means it’s now difficult for many people to use Binance as a one-stop shop for buying, selling and trading crypto; instead they’re forced to use the exchange purely for trading, making use of other channels to actually purchase or sell crypto with fiat currency.employ

Does it have an app?

Binance has both an iOS and Android app, both of which bring the functionality of the desktop site to your pocket. The app is highly rated across both platforms—just make sure you’re downloading the official one and not a dodgy copy, especially if you’re an Android user.

FTX

What is FTX?

Launched in May 2019, FTX is a relatively new entry, and is one of the best cryptocurrency derivatives exchange in the world. This means it’s different from your traditional exchange in the sense that users can trade contracts on crypto assets, or buy tokens representing other assets or funds. One example are futures—investments which provide users with an obligation to buy or sell assets at an agreed future date.

What coins can I buy on FTX?

While FTX is primarily a derivatives exchange, it still offers a spot market (more traditional buying and selling orders). It currently offers just over 100 coins including BTC, BNB, UNI, ETH, BAT, and DOGE, with trading pairs including BTC, USDT, and AUD, EUR and USD. Exceptions on the spot trading market include XMR and VET, although they are supported in the futures market. In July 2021, FTX announced that it would limit users to a maximum leverage of 20x.

What are the fees like?

FTX has a tier-based fee structure that’s based on trading volumes in USD.

How easy is it to use?

FTX is a slick, polished exchange, but there are no two ways about it—if you’re a beginner then the options of futures, stocks, leveraged tokens, volatility and more will make for a very confusing and intimidating first impression. That’s not a knock against the exchange itself, it’s just that it’s aimed at experienced crypto users looking for something beyond simple trading.

Crypto.com

What is Crypto.com?

Founded in 2016, Crypto.com was previously known as Monaco, but was rebranded one year later after the (expensive) acquisition of the crypto.com domain. While it’s best known for its Visa card, which allows users to convert their cryptocurrency and spend it anywhere that Visa is accepted, it also has other features—including an exchange.

What coins can I buy on Crypto.com?

Crypto.com has over 120 coins and tokens available to trade at the time of writing against USDT and the exchange’s own native token, CRO. BTC-tradable pairs are reduced to around 26 coins.

Exceptions include XMR, and while BNB is supported in some states, it’s not available in Alabama, Connecticut, Hawaii, Idaho, Louisiana, New Mexico, North Carolina, Vermont, Washington, Georgia, and Oregon.

What are the fees like?

As with a number of other exchanges, Crypto.com’s fees are volume-based, which means they decrease as your trading volume increases.

How easy is it to use?

The main exchange is easy to use for anyone who’s got to grips with basic trading options. The interface is clean and minimal, and should be easy to pick up. Things get more complicated if you click around and find the likes of derivatives trading of course, but that’s purely due to the experience required to find yourself at home there.

Does it have an app?

Crypto.com has apps on both iOS and Android which makes for a handy way to keep on top of trading, while also checking your Crypto.com card information, if you decide to sign up for one. If you do, you can get up to 8% cashback as well as earning interest on your crypto assets.

eToro

What is eToro?

Founded in 2007, eToro is an Israeli multi-asset brokerage company. It has offices registered around the world, including the UK, the US, Australia, and Cyprus. It added cryptocurrencies to its investment options in 2014, with a crypto wallet for Android and iOS launching in 2018. You can also use the site to trade stocks, currencies, and commodities.

What coins can I buy on eToro?

Currently, eToro lets you trade 28 coins, including BTC, ETH, LTC, DASH, XLM and BNB. That’s the lowest offering on this list, but we expect it to grow over the coming years. It’s also recently added Dogecoin to its roster, though some key omissions include XMR, DOT and SUSHI.

What are the fees like?

The only trading fees eToro charges are for spreads.

How easy is it to use?

eToro is fairly straightforward to use, and it also handily offers a free practice account. Registered users can play around with trading with a fake balance of $100,000, which is a great, unique way to get to grips with everything. Not only that, but you also have the option to copy other successful traders’ investments, with the obvious caveat that there are risks involved.

Does it have an app?

eToro has an app that’s available on both iOS and Android, with the Android app rating a little higher based on user feedback.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

 

crypto exchange cryptocurrency how to earn

Exchange Crypto Instantly

Exchange Crypto Instantly-
Are you a person that wants to earn generous cryptos using a very easy to use an instant exchange?

Cryptocurrencies are digital currencies that are electronic in nature. They do not have a physical form like paper money or coins which you probably have in your wallet right now. You can’t hold them physically, but you can buy things with them.

If you’re looking to invest your hard-earned cash but can’t afford Bitcoin prices right now, there are plenty of alternative cryptocurrencies to choose from such as Ethereum, Litecoin, Ripple, Dash, Monero, Zcash, and more.

We would, of course, advise you to do some in-depth research on the cryptocurrency you want to invest in as not all cryptocurrencies are equal. Some are more stable than others and would, therefore, make for better investments.

At the moment you can exchange close to 100 cryptocurrencies. The exchange rate is not more than 1%!

It is a method that permits you to exchange instantly cryptocurrencies. This process during around 2 minutes and it occurs in a very secure mode.

cryptocurrency exchange how to earn

Top Cryptocurrency Exchanges 2022

cryptocurrency exchanges

A cryptocurrency exchange is a place where you’ll exchange one cryptocurrency for another one.

Simple buying and selling can be done by using other crypto coins or even fiat. One common function of crypto is to trade currencies against each other or against fiat currencies. In order to trade, you need to start out with some base currency (with the exception of CFD trading).

Trading is done with pairs of coins, and in each transaction, a crypto trader is buying a coin while selling another coin. Similar to the forex market, the order of the coins within pairs is generally fixed so you will always see ETHBTC and never BTC ETH, same as you will always see EURUSD and never USDEUR.

As an example, in the transaction BUY 10 ETHBTC a trader is buying 10 ETH and paying their value in BTC, essentially selling a part of their BTC to buy the 10 ETH coins. The price for the 10 ETH coins is determined by the exchange, which is determined by the market. The reverse transaction SELL 10 ETHBTC will sell 10 ETH coins and BUY BTC for the worth of those coins as determined by the exchange rate.

In other words, counting on the exchange. Bitcoin trading jobs could be an immense potential to create cash online. The currency market is very volatile. The majority of the trading exchange sites operate through bitcoin(BTC), and ether(ETH).

Here are exchanges that need you to deposit cryptocurrency to start out trading. Usually, this suggests depositing Bitcoin (BTC) or ether (ETH).

Binance – could be a cryptocurrency exchange with terribly low fees for trading. Once you have got purchased Litecoin, Bitcoin, or Ethereum you may use Binance to convert one in every one of those 3 coins into nearly any altcoin. Binance is good at this point for each, consumers and traders.

CoinbaseCoinbase is the world’s largest Bitcoin (BTC) broker. They represent an easy and fast way for new users to purchase bitcoins, ethereum, litecoin and many other coins. You can use credit/debit cards, bank transfer, SEPA, and PayPal to get started on this coin exchange.

Kucoin – is that the most advanced cryptocurrency exchange currently. Kukoin offers all users a collection of order sorts to present traders the tools they have for each situation.

Cex.io – instantly you’ll purchase or sell Bitcoins for USD or EUR. Trade cryptocurrency victimization limit. At the money sites page, you’ll look at your funds in your wallet. Create deposits and withdrawals and realize your addresses for Bitcoin and altcoins.

ByBitis the World’s fastest-growing and one of the largest crypto derivatives exchanges to trade Bitcoin and crypto. You can buy Bitcoin, Ethereum, and more from fiat to crypto easily. All you need is to purchase through credit, debit, and bank transfers with just a few clicks. Currently, Bybit only accepts BTC, ETH, XRP, EOS, and USDT withdrawals and will only process withdrawal requests.

Poloniexallows users to buy, trade, and sell lots of different cryptocurrencies, which includes popular coins like Bitcoin and Ethereum, as well as less popular ones too. One of the main advantages of using Poloniex is the huge range of cryptocurrencies and relatively low fees.

Peer to Peer (P2P) Cryptocurrency Exchanges

Peer-to-peer exchanges are marketplaces where people can trade crypto directly with one another. In a P2P exchange, sellers usually set their price and mode of payment like PayPal, bank transfer, or credit cards. They supply a technical platform on which buyers and sellers can settle trades on their own terms. Unlike traditional exchanges, they don’t process any fiat payments or hold users’ funds in custody. This light setup allows them to work in virtually any country and be subjected to much less regulation than normal cryptocurrency exchanges.

LocalBitcoins – could be a marketplace wherever users should purchase and sell Bitcoins to and from one another. Traders post advertisements on the exchange sites. Also, the users fast purchase or fast sell Bitcoins online for quite sixty completely different payment strategies.

PaxfulBuy Bitcoin on Paxful in real time. Trade with other users online using our live chat. Sell your Bitcoin at your chosen rate, and get paid in one of the numerous payment methods. Trade cryptocurrency globally. Multiple payment methods. Free bitcoin wallet. And much more, right here on Paxful.

LocalBitcoinSwapBuy Bitcoin, Ethereum & other popular Cryptos using bank transfer, PayPal, cash, and over 250 other payment methods. Trade Ethereum using decentralized smart contracts, exchange Bitcoin instantly without tedious waiting times for new blocks. During the trade the cryptocurrency is locked into a secure escrow system until the seller has received the payment directly from the buyer.

LocalCryptosis a worldwide peer-to-peer marketplace. You are never buying cryptocurrency from or selling cryptocurrency to LocalCryptos; you are always exchanging directly with another user. All fiat payments are made outside the platform using regular payment channels, directly from person to person.