cryptocurrency: Future operation for beginners
In recent years, the world of finance has registered a significant change with the increase in cryptocurrencies and future transactions. Cryptocurrencies, such as Bitcoin, Ethereum and others, have gained popularity as alternative forms of digital currency, while futures trade implies speculations about the price movements of underlying assets, such as currencies, goods or indexes.
What is your futures trade?
The futures trade, also known as contractual trade, is a type of financial transaction in which an individual contract to buy or sell an asset at a predetermined price at a specific date. The contract buyer pays a cousin for the right to exercise the contract at the established price, while the contract seller gains the difference between the exercise price and the market price.
Types of futures contracts
There are several types of futures contracts that include:
- Cash actions : These are the most common type of futures contract, where an investor acquires or sells a specific action at a predetermined price on a specific date.
- Future contracts with options : These contracts provide buyers with the right to exercise the option to buy or sell an asset at a specific price, but do not guarantee that the buyer takes possession of the asset.
- Futeros of goods : These contracts are negotiated for physical goods, such as gold, oil or agricultural products.
- Future coins : These contracts are negotiated by currencies and imply speculation about exchange rates.
Turning the Cryptocurrency of Futures
The growth of cryptocurrencies has created a new market for futures trade, especially in the fields of Bitcoin and Ethereum derivatives. These contracts allow Specular investors on future prices movements of these assets, many platforms that offer margin and trade lever.
Benefits of future cryptocurrency transactions
- greater leverage : The trade of cryptocurrency
- Diversification : Investment in cryptocurrency -derived instruments can provide a way for investors to diversify their wallets and potentially increase yields.
- Without minimal investment requirements : Many cryptocurrency futures negotiation platforms do not require minimal investment requirements, which makes it accessible to a broader range of investors.
Risks to the trade of cryptocurrency futures
- Market volatility : The cryptocurrency market is extremely volatile, and prices can quickly fluctuate, which leads to significant losses, if not adequately administered.
- Lichidity risks : There are risks of lichen when we exchange large amounts of assets at low prices, which makes it difficult to sell or buy enough to avoid significant losses.
- Regulatory risks : The regulatory panorama for tools derived from cryptocurrencies continues to evolve and may be under changes that can affect investors.
Tips for beginners
- EDUCATE -VA : Before starting to operate, take the time to know the basic elements of the futures trade, including risk management strategies and the use of lever.
- Choose a renowned platform : Investigate and choose a future cryptocurrency trade platform that offers a reliable execution, low taxes and safe trade conditions.
- Start with small positions : When entering the market for the first time, start with small positions to minimize losses and gain experience.
- Diversify the portfolio : Dissemination: Do you have investments in different classes and markets to reduce the risk?
Conclusion
The cryptocurrency futures trade offers a new way for investors to speculate on the movements of the underlying assets, but requires a careful examination of the risks involved.