How to trade bitcoin futures

Introduction

This article is all about how to trade bitcoin futures and what is bitcoin and bitcoin futures. For traders, this article is very helpful before investing money in bitcoin futures.

What is Bitcoin?

Bitcoin is the decentralised digital currency that you can buy and sell and exchange with others without the involvement of the bank. Bitcoin is authorised and regulated by the Financial Conduct Authority in the United Kingdom. The creators of the bitcoins are Satoshi Nakamoto; he created and described the need for electronic payment, which is based on Cryptographic proof. Bitcoin is different from the forex market in which the market liquidity of forex is much higher as compared to Bitcoin. The market of Bitcoins is approx $137 billion, which is small in the market. Trading bitcoin is not much easier as you think this is not easy to understand.

What are Bitcoin Futures?

Bitcoin Futures allows traders to observe the price of the bitcoin in future. The Chicago Board Options Exchange offers the first and last future contracts to the traders. The main reason for discontinuation is that bitcoin price is the most volatile in nature and makes investment risky.

What are the key benefits of Bitcoin futures?

• The trader can easily trade with the market view of points, and it helps to gain profit from the trading.

• Expand the choices of the cryptocurrency risk with the bitcoin futures and options on futures.

• It is very helpful to predict the price of the bitcoin in future.

• Save the margin money between the bitcoin futures and option on futures.

How to trade Bitcoin Futures?

• Open an account with an IGMFX broker because it is the best platform for trading with its amazing features.

• Fill the application form of IGMFX in which the trader has to fill in the name, country, address, and many more things.

• After that, the trader has to give the answers to a questionnaire in which all the questions related to the trading goal and plans.

• Verification of documents is necessary for the trading platform. In this step, the trader has to prove itself with their government ID.

• Finally, the trader has to pay the initial money of trading on the platform, and after that, the trader invests the money in trading.

What happens when the Bitcoin future expires?

On the expiry day of the bitcoin future, the broker has to give the settlement price to the traders. In simple words, all expired open positions will be settled at a determined price by the exchange. The settlement price will be calculated on the basis of every second over the last hour before the delivery.

Will Bitcoin Futures affect the price?

In the end, bitcoin futures should introduce huge price movements in the long term. In the case of bitcoin futures, the price is dependent on the bitcoin spot prices. The dependency leads to the prices of the two moving in sync with each other.

Is bitcoin a good investment?

Yes, bitcoin is a good investment. In the present times, the value of bitcoin is increasing day by day without any doubt. All the traders of bitcoin gain so much profit in the future. The current price per bitcoin is around $56000, which is vast. According to the prediction, the bitcoin price in 2025 is approximately $300000.

Select the best broker

• IGMFX

It is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) and was founded in 2016. The platform offers 170+ CFDs instruments on a variety of assets like cryptocurrency, commodity, forex, metals, indices and stocks. The platform also provides educational material to the traders such as VOD, articles, courses, ebooks and tutorials. It is the old broker in the market with their best features and services for the traders. The broker uses the MetaTrader 4 platform for trading.

• ABinvesting

ABinvesting is a brand name of Hub Investments Ltd, and it is authorised and regulated by the Mauritius Financial Services Authority (FSA). The platform offers 350+ CFDs instruments on assets like forex, commodity, metals, stocks, indices and cryptocurrency. The platform provides the three types of account to the traders such as silver, gold and platinum accounts. The maximum leverage offered by the broker is 1:500 for the professional clients and 1:30 for the retail clients.

The Bottom Line

The trader has to choose the reliable broker for trading in bitcoin because the bitcoin price is more volatile, which means the platform we choose for trading is experienced, and history should be clear. The broker works ethically in the market.

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