Futures trading on Binance is not only an opportunity to profit from the crypto market but also a challenge for those who want to test their analytical and risk management skills. However, futures trading also carries many risks, especially when using leverage. Below is a detailed guide to help you start safely and effectively.
1. Necessary steps to start trading on Binance Futures.
Step 1: Create a Binance account.
If you do not have a Binance account, visit the official website or mobile app to register. Don't forget to enable two-factor authentication (2FA) for security.
Step 2: Activate Binance Futures.
Access the Futures tab on the Binance app or website.
Complete the short knowledge test to activate the Futures account.
Step 3: Fund your Futures account.
Transfer money from the Spot wallet to the Futures wallet. You can use USDT, BUSD, or other stablecoins.
Step 4: Choose the trading contract.
Binance offers 2 main types of contracts: USDⓈ-M Futures (using stablecoins as collateral) and COIN-M Futures (using coins as collateral).
Example: Trading BTC/USDT on the USDⓈ-M contract.
Step 5: Place an order and start trading.
Choose the appropriate order type: Market, Limit, or Stop-limit.
Consider the leverage level before placing an order.
2. Important things to note when using leverage.
Understand the leverage mechanism: Leverage allows you to trade more money than the available capital. For example: With 10x leverage, you only need $100 to trade $1,000. However, profits and losses will be magnified accordingly.
Risk management: Only use high leverage when you have experience. For beginners, it is advisable to start with low leverage (2x-5x) to minimize risks.
Set stop-loss: Always set a stop-loss order to protect your capital in case prices move against your prediction.
Understand liquidation: If prices fluctuate significantly and your account doesn't have enough to maintain the position, you may be liquidated and lose the entire deposit.
3. Popular coins for Futures trading.
Bitcoin ($BTC ): The coin with the largest liquidity and trading volume.
Ethereum ($ETH): A popular choice due to its stability and growth potential.
$BNB : The coin linked to the Binance ecosystem.
Solana (SOL), Cardano (ADA): Suitable for those who want to trade altcoins with a clear trend.
Final advice
Futures trading can yield high profits, but the risks are also very high. Only use the amount you are willing to lose, learn how to manage risks, and continuously improve your knowledge before participating in this challenging market.
