Futures is a financial instrument that has been used for hundred of years now. An underlying asset can be any commodity, gas, grains, precious metals, etc. The essence is to predict the future value of a commodity and to “bet” on it, documenting the price in an agreement.
Crypto futures are trades with an underlying crypto asset, wrapped in an agreement on buying or selling it on an exact day in the future and at a pre-agreed price fixed in the agreement.
Suppose you want to try futures trading and have SOL coins. You pick a crypto platform and make a forecast for the Solana price. It either grows or drops. Suppose you believe the price will rise. So you claim the future SOL value in a contract as well as the date when you will sell SOL coins (at a higher value). A reverse situation – you counted and concluded that the SOL price would drop. So you sell your coins beforehand and make an agreement to buy them back at a lower value (fixed in a contract) and on some exact day. When the day comes, and if the SOL value really matches your prediction, you get your coins back and have income from selling them beforehand.
Where can you trade futures for crypto? Here are some platforms:
- WhiteBIT
- Bitcoin Futures
- KuCoin
- Bybit.
Futures Trading on WhiteBIT
WhiteBIT is the largest crypto exchange in Europe, offering a convenient interface with a variety of trading options and tools. Even a beginner trader will easily buy cryptocurrency on WhiteBIT. The platform ensures the safety of clients’ assets and is on the top 3 of the most secure crypto platforms in the world. WhiteBIT’s reserves are enormous and can satisfy many trades and allow for large transactions. The exchange provides a high level of liquidity, attracting large investors. You will be surprised but transaction fees on WhiteBIT are only 0.10% regardless of the amount.
Perpetual futures are available on WhiteBIT. That means contracts with no end date of expiration. It is achievable due to a unique mechanism integrated into the platform. It allows adhering prices to the spot market, allowing perpetual trades. That is the crucial thing that differentiates WhiteBIT from other popular exchanges. Check out more information on futures trading on the WhiteBIT blog.
