A crypto exchange is an online service where you can purchase and transfer different types of digital assets and pay a fee in return. Common activities performed on a crypto exchange include operating with various trading pairs to gain income. Also, some platforms support the function of margin and derivatives as well as the services of wallet and cryptoanalysis. One popular yet complicated option available on large platforms is futures. Where to buy crypto futures and which is the best crypto to invest in? Read on to find the answers.
How to Find a Crypto Platform?
As the market grows, many investors are turning to futures to make a profit. This involves using a service to “bet” on the possible level of value the asset can reach somewhere in the future, without actually owning them. With so many options, it can be difficult to select the best crypto futures exchange for your needs. However, we will list some reliable options at the end of this article.
How do crypto exchanges work? Check out the key concepts:
- Futures let individuals purchase or sell assets at a pre-defined time and value. They can make predictions about price changes without owning it actually through these contracts. Thus, the buying is postponed to the moment when the agreement expires. Or, another way is to sell out the agreement before it happens.
- Traders have two options: going long or short. Long involves acquiring a contract with an expectation that the value will go up. On the other hand, shorting involves selling a contract with the anticipation that the value will decrease.
- Futures exchanges often provide leverage for their clients. It enables individuals to manage a bigger position with less capital. To illustrate, with 10x leverage, a trader can manage $10 of cryptocurrency with only $1 of their own funds.
- Traders must first deposit an initial amount – margin – a portion of the total contract value. It serves as collateral and helps to safeguard the exchange from any potential losses.
To find the best crypto to invest in futures, check out the top cryptocurrencies with the most significant trade volume and cap. That will ensure ongoing demand for your crypto.
Some Popular Variants of Platforms for Futures
You may choose, for instance, the Binance high-quality futures platform. You can enjoy up to 125x leverage and low fees. A user-friendly interface will enhance the trading practice.
You can also try OKEx to trade with 100x leverage, pay modest fees, and access powerful tools. Download the mobile app to trade on the go.
The WhiteBIT crypto exchange is also a good choice with its 20x leverage and perpetual deals. These are a type of contracts that does not have a fixed date. These deals have a built-in funding mechanism that keeps them close to the current spot value. As a result, users can receive or make payments based on their open positions at certain times. Check out the WhiteBIT blog to read more details about this option.