Bitcoin Trading

How to Trade Bitcoin Futures?

By madhavj | forexreview | 18 May 2021

Bitcoin is the world’s first cryptocurrency that was launched in 2008. It is also known as the leading cryptocurrency and a huge number of investors have become rich by investing in this cryptocurrency. Many exchanges and ways are present to make investment and earn money.

Understanding Bitcoin

Bitcoin is a digital currency that can be used as a medium of exchange on many platforms. It works on blockchain technology and all the transactions are secured with cryptography. This is to ensure that the coins and the network are fully protected from any of the invaders.

What Are Futures?

Futures are legal agreements between two or more parties to execute a trade on a predetermined date and price. These are known as derivatives of the financial markets that are used for hedging and speculation.

It involves no physical movement of Bitcoins and the net difference between the opening and closing prices are settled by the traders.

How To Trade Bitcoin Futures?

How to trade Futures?

If you want to trade futures of Bitcoin or any other cryptocurrency, then you need to follow this procedure:

  • In the initial step choose a broker or online exchange for trading futures of the cryptocurrency in the open market.
  • Choose a reliable and trustable broker that is also regulated and ensures complete protection of your funds and transactions.
  • Study the pricing factors related to bitcoin that are necessary to study before making an investment in the market.
  • Determine your trading goal, which means for how long you want to stay invested or how much return you want to earn.
  • Find a future contract that is suitable for you and can give higher returns to you. Compare a few contracts to find the best one.
  • Enter the contract that you find the most suitable according to your investment goal or your trading style.
  • Monitor the market to avoid any losses of funds and earn profit from the investment made by you.

In this way, traders can enter futures contracts of bitcoin and they can make money by settling them on the closing date. This can add diversification to your portfolio and can give you high earning potential.

The Benefits of Trading Futures

There are several benefits of trading bitcoin futures that can be enjoyed by traders. The benefits are listed below:

  • Executions to price movements of bitcoin immediately
  • No need to hold bitcoins for any duration of time
  • Traders can go long or short as per the requirement of the trader
  • Leverage can be used to earn more profits from the market
  • Modify your order types at movements to earn higher profit

These are some of the leading benefits of trading futures of bitcoin. Apart from this, there are various other benefits also that traders can achieve if they trade bitcoin futures.

Other Derivatives

Traders can also go with other trading derivatives like options and forwards. These are also profitable and traders earn huge returns by investing in the same.


In an options contract, traders have two options one is the call option and the other one is the put option. The call options provide the right to buy to the trader. On the other hand, the put options provide the right to sell to the trader. It is also used to speculate prices.


Forwards are contracts that are similar to futures but the main difference between them is forwards are not standardised. In the futures, a trader is obligated to execute the contract on the predetermined date. However, with forwards traders can break the contract before or on the date of the contract.

Select Regulated Brokers

If you are trading in any of the global financial markets then you need a regulated and trustable broker. There are various brokers present across the globe but how to choose the best one. Here are a few of the top online brokers:

Traders get multiple advantages trading with these brokers. Some of the advantages are listed below:

  • High leverage for trading in the global markets
  • A reliable trading platform such as MT4, WebTrader, and Mobile app
  • Dedicated team for customer support 24/5
  • Educational resources to enhance their knowledge
  • Trading tools for better analytical and market research
  • A demo account for trading at the beginning

Start trading with a reputed broker and get many more benefits along with these benefits. These traders are regulated and highly secure for online trading.

The Bottom Line

Bitcoin is the very first digital currency and trading bitcoin futures can be highly profitable for a trader. It is a type of financial derivatives and there are other derivatives also that can fetch higher earnings from the global financial markets.

Traders need to find a reliable broker for online trading that is offering smooth trading. Study the market before entering and earn high returns with your knowledge.

How do you rate this article?




I believe great writing has the power to transform your business. It’s the difference between forcing your readers to wade through jargon-filled copy versus engaging content that ignites the thought:


This blog about forex. Everything you went to forex we provided every signals things about forex.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.