Since the depreciation of Bitcoin price, Bitcoin futures trading volume has been rapidly rising. Traders seem to find a way to earn back their loss form spot market. In addition, Bitcoin futures is a good method for investors to hedge against the unbelievable rising or falling in Bitcoin price at the past 2 years.
“In the past 2 years, we realized the opportunity base to the sustained growth of daily volume,” said Mike Bush, the experienced traders from Bexplus exchange. “As the increase of the supply and demand, the volume of Bitcoin futures has been rising rapidly.”
Compared to Spot trading, Bitcoin futures has the advantage that traders can hedge the Bitcoin price despite the rising or falling,
Wade said: “One of the reasons why Bitcoin future has high demand is because the futures and spot market has a tight relationship”
Due to the regulation and hacking problem, the cryptocurrency market, especially for the altcoins were excessive volatility and faced to the billions of missing in value. The bitcoin price has reached to the highest price of $20000 in December 2017, However, after that, it fell down to $8000 in March and $3900 at present.
From the beginning of 2018, the Bitcoin futures become globally which attracted millions of investors outside the U.S., Wade said, It is a great tool to transfer the risk because of the individual liquidity. It can help traders to make a tight bid-ask spread by multiple strategies for managing the risk.
“the advantages of futures market are that traders have a chance to gain profit by the price movement and the price are more transparency.”Wade said, “There is a disadvantage that the futures market can easily lack liquidity, However, after supporting exchange, Bitcoin futures become more stable and traders do not need to worry about liquidity. Bexplus exchange has adequate liquidity pool which supported by the professional and powerful banker. It provides a great trading environment to all traders.”
The Bexplus Cryptocurrency futures contract is better designed because the contract value is smaller which need lower margin requirement.
Wade said: ”Although the interesting of trading Bitcoin futures fell down in past few months, more of the price falls down, more trader will get into the market. The falling prices attract to some traders. People used to think that Bitcoin price would rise forever without limited, but this situation is gone. People are getting more attracted by Bitcoin futures.”
The Bitcoin spot market requires traders to believe that the price will go up eventually. Says Wade, However, the futures market allows traders to go long or short.
“Traders can not only see upside but also consider the price will fall down in the future,” He said, “However, In the spot market, the trader, or we can say the coin collector believe the price will appreciate at last. ”
Most of the traditional traders from Wall Street are interested in Cryptocurrencies because it has the potential for hedging against systemic risk. Cryptocurrencies can transfer peer to peer form different parties in a short time. The fast transfer speed and confirmation provide a more free environment to the institutional buyers who trade a futures contract.
Cryptocurrencies have a unique market which has high volatile.
Wade said: ”It has big opportunities in this market.”
Bexplus is a world-leading derivative platform in cryptocurrency area, which aims at providing advanced financial services to global investors of futures trading by using blockchain technology.
At present, Bexplus offers perpetual contracts on BTC, ETH, LTC futures trading with up to 100x leverage, and more altcoins futures will be listed in the platform in the future.
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To deposit BTC in the Bexplus account, you can earn a 100% BTC bonus, which can also be used to trade futures contracts. The more deposit, the more bonus you will get. You can get up to 10 BTC as a bonus!
Read more: https://www.bexplus.com/en/cash_back
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Before you trading cryptocurrency futures contract, suggest you understand more about it. You can also try it in the Bexplus trading simulator with 10 BTC preset and enjoy the fun of making a great profit more easily.
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