How do you trade in crypto futures?

Asked 2 years ago

Good morning. I have a question concerning future contracts and how they work. It looks like an interesting concept. However, I'm not 100% sure how it works or what the point of one is. Why not do an immediate transaction instead? Will the profits gained from the futures contracts go directly back into my portfolio, or do I need to get a digital wallet? Also, if I were set a futures contract with the opposite party, how would we find a fair value? Thanks in advance for all your answers!

Crypto wallet Future contracts Trading crypto Investment portfolio

Alec Wiggins

Wednesday, August 17, 2022

Getting a crypto wallet isn't mandatory to trade futures. You can trade features just fine with CFDs, for example (a contract for difference). You can find some good CFD platforms and trade futures even without owning any crypto at all. If you have to get a hot wallet, I'd recommend going with a reliable platform like Binance, Coinbase, or Nexo - my top choices. Cold wallets are great too. 

Filip Dimkovski

Sunday, September 18, 2022

If you want to tradde crypto futures, you need to register an account either at a centralized exchange like Binance or a CFD platform like Trading212. To do this, you don't need a crypto wallet - you just need to register an account, finish the KYC procedure, and make a deposit. The withdrawals will be usually processed through the same payment method. The profits you acquire will remain in your portfolio. 
However, I wouldn't recommend starting to trade with futures if you're not experienced as a trader. Future's trading requires having at least some experience in trading before, which is why I'd strongly advise you to take it slow and use no leverage. 