What is cryptocurrency and crypto futures trading?

With the rise of technology and internet there have been many changes in our day to day life. It has changed the dynamics of various aspects smooth digital communication, ease of access, digital transactions, and social media. One such monumental addition to technological advancement is emergence of crypto currency powered by the blockchain technology.

Cryptocurrency, sometimes just referred to as crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don’t have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units. The use of encryption technologies means that cryptocurrencies function both as a currency and as a virtual accounting system. There are many types of currencies that have been developed with the likes of Bitcoin (BTC), Ethereum (ETH), Tether (USDT), etc. each having their own unique and different value.

Understanding futures trading crypto.

Crypto futures trading is a type of trading that mimics futures trading in the mainstream markets. It involves using futures contracts, which are legal agreements to buy or sell an asset in the future at a predetermined price. They allow investors to gain exposure to select cryptocurrencies without purchasing them. It is considered a little risky as these currencies have volatile price swings. You can trade cryptocurrency futures at brokerages approved for futures and options trading.

Futures contracts of any underlying asset are derivatives of that asset. This contract is made upon the speculative asset’s price at the specific date in the future. The contract is made between two commodities’ investors which are then bought and sold. The contracts have a specific number of units, pricing, marginal requirements, and settlement methods that investors must meet.

An example of Cryptocurrency Futures Trading is if an investor purchases two bitcoin futures contracts totaling 10 bitcoin. The price of a single bitcoin when the futures contract was purchased was $5,000 each, totaling $50,000 for both futures contracts. The margin requirement for Bitcoin futures trading at CME is 50% of the contract amount, meaning that the investor has to deposit $25,000 as margin. They can finance the rest of the contract purchase by using leverage.

Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third-party interference. Ethereum trading platforms are websites that allow you to buy and sell Ethereum for other cryptocurrencies or fiat currencies. Some platforms also offer other services such as wallets and storage, but not all platforms offer these services.

BTCC is a company that has been dedicated to making cryptocurrency reliable as well as accessible for common traders. Not only it has the expert team members to assist you but they also have immense experience of more than 10 years. It was founded in 2011 and is based in UK but they also have license of operating in the US, Canada, and Europe. An example of Cryptocurrency Futures Trading is if an investor purchases two bitcoin futures contracts totaling 10 bitcoin.

They provide excellent and safe trading services by using high end technology and monitoring the ups and downs of the market.