Why crypto holders should consider trading futures on Binance Futures
When I ask Crypto holders what type of trading they carry out on the Binance exchange, most are quick to respond that they only deal with Spot trading. I go further by asking why they don’t trade Futures or Margins and I get different answers and excuses. While it’s not a bad idea to do Spot trading alone, Binance Futures offers a lot of advantages to traders when trading Futures. As a matter of fact, trillions of dollars are being traded every month and the range of offerings keeps on expanding because more and more traders are continually on the lookout for opportunities to gain quick profits regardless of the market’s direction.
The difference between spot and futures
Most usually confuse Spot trading and Futures trading. Thus, this is to clear the air on the differences between Spot and Futures;
- Leverage: with Leverage, Futures trading are very capital-efficient. Under Futures, you can open a 1 BTC futures position at a fraction of its market value, while Spot trading over no leverage at all.
- Liquidity: the crypto Futures markets offer deep liquidity, having trillions of dollars in monthly volume. This by far supersedes the trading volumes in Spot markets.
- Prices: buyers and sellers determine the prices of Cryptocurrencies through the basic economics law of demand and supply. Prices on Futures is based on the prevailing spot price plus the futures premium, this Futures premium could be either positive or negative. Meanwhile prices on Spot is the ruling price for all transactions on the Spot market.
Market-neutral trading strategies
A market-trading strategy is an investment strategy shouldered by a Crypto trader that hopes to make a profit from both the increasing prices and the decreasing prices in one or more markets whilst attempting to avoid completely some form of market risk.
Futures as a hedge: When a crypto trader uses futures contracts as part of their hedging strategy, their goal is to reduce the likelihood that they will experience a loss due to an unfavorable change in the market value of the underlying asset, usually a security or another financial instrument.
Why you should consider trading futures on Binance Futures
Let’s discover some benefits of trading futures on Binance Futures;
- Enormous selection of Cryptocurrencies: Boasting of over 530 crypto-to-crypto trading pairs, Binance Futures allows users to trade whatever they want from the big guns (BTC, ETH…) to DeFi tokens (DAI, UNI…) to memecoins (Dogecoin, Shiba Inu). That’s not all, New coins are constantly being listed to provide traders with the best trading experience. Isn’t that awesome?
- The Brand (Reputation): Most times when people bring new projects or airdrops to my notice, my first question before anything else is - ‘Is it listed on Binance?’. Over the years Binance has proved to be very reliable and thus built it’s reputation that way. As many as the more than 28 million active users on Binance would agree that if a Cryptocurrency is listed on Binance, it is legit.
- Reduced Trading fees: You would expect that a service like Binance Futures would require huge fees for trading Futures right? Wrong! Binance Futures has an exceptionally low fee structure. On Binance Futures, maker/taker fees can go as low as 0.000%/0.017%. What all these mathematics mean is that you get to keep your hard earned profit. Traders could further slash these fees by holding BUSD or BNB.
- Price fluctuation not a problem: Ability to make profits despite the market’s direction is another fantastic benefit of trading futures on Binance Futures. With Binance Futures, traders can sell high and buy low or buy low and sell high to benefit from any price fluctuation while implementing different strategies like Grid Trading and TWAP.
- Secured Security: wondering why I had to add Secured before Security? Well, that’s because security on Binance is tighter than Mike Tyson’s punch. Multiple security features (such as KYC, 2FA, and Anti-Phishing Code) have been put in place to help traders protect themselves against nefarious actors. Also, traders have the assurance that their funds are SAFU in Binance as the exchange holds a $300 million Insurance Fund to protect bankrupt traders from adverse losses while ensuring that the profits of winning traders are paid out in full.
- Multilingual Support: Taking cognisance of the huge user base and the diversity this comes with, Binance offers incredible customer service with support in 17 different languages as well as an extremely easy-to-use user interface. What this means is that no matter what part of the world you’re in or from, Binance has got you covered and you can can participate in the crypto revolution. That’s fantastic if you ask me.
In Conclusion, trading Futures on Binance Futures would be very much be of benefit to you. Please do let me know if you have any questions or comments. Make the smart choice today! https://www.binance.com/en/futures
Create a free Binance account today https://www.binance.com/en/buy-sell-crypto?ref=ZCF73TU7
Happy Trading :)
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