WHAT IS THE FUTURES MARKET ALL ABOUT?

The crypto futures market allows traders to speculate on the future price of cryptocurrencies like Bitcoin or Ethereum without owning the actual assets. Traders enter into contracts to buy or sell a specific amount of cryptocurrency at a future date and a predetermined price. These contracts often use leverage, enabling traders to control larger positions with smaller amounts of capital.

There are two main types of crypto futures:

1.STANDARD FUTURES: Contracts with a set expiration date.

2.PERPETUAL CONTRACTS: Contracts with no expiration, using funding rates to keep prices aligned with the spot market.

Traders can profit by going long (betting prices will rise) or short (betting prices will fall), making it a tool for both speculation and hedging against price volatility. However, high leverage increases both potential profits and risks, making risk management crucial.

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