Hello colleagues!
If you are thinking of operating in the Binance Futures market, I leave you a small guide, short and concise so that you can operate without problems and reduce losses as much as possible.
This is not financial advice or a trading tutorial, just to get you started with the Binance platform and interface.
In the Binance futures market, we can trade USDT. Our mission will be to speculate on the price of a pair of cryptocurrencies, typically going up or down.
When we open a trade, we virtually buy an amount of the selected asset. Unlike conventional trading, we do not have possession of the asset, only on paper.
We can start from 1 dollar and although it seems surreal, you can open operations with 30 or 40 cents.
The most important thing is knowing how to manage leverage. Binance gives us two options. The first is cross leverage. It means that we respond with the position we have opened and with our entire Wallet. The second is isolated leverage. We only respond with the capital that we have used in that specific position.
That is, if I have 200 USDT in my Wallet and I open a position of 20 USDT in the BAT / USDT pair with cross-leverage, I will be defending this operation with my entire portfolio, although when it comes to obtaining profits, only the amount of money will be decisive used in this position.
If, on the other hand, we establish isolated leverage, we will only use as defense the capital used in the position, in this case, 20 USDT.
If you are a beginner, I suggest you use the isolated leverage, maximum x3. Naturally, the gains are very limited but also the risk. The market will have to rock sharply for you to suffer a substantial loss of your capital.
If you are going to operate with small capitals, stick with cryptocurrencies that are worth little like Zilliqa, BAT, Iota, IOST, or Bittorrent. The normal thing is that these cryptocurrencies in periods of 1 minute and 1 hour, go up a few cents up or down. With Bitcoin or Ethereum, in a minute you can see $ 500 dips and rises. The market would destroy your position in a second.
If you have USDT on Binance, all you have to do is transfer it to your futures account.
