When it comes to Binance futures then we are talking about Crypto trading because Binance is one of the best exchanges in the crypto space. Trading on Binance is a long way wide but you have to get started somewhere because your own research and strategy in trading is your first priority to you.
Getting informed in trading, you need to understand some aspects like Candlestick Chat, Volume Surge, Breakout partners, and many more but in all, you need to understand and know much better. It is categorized into two they are Technical Analysis & Fundamental Analysis. Now let’s get to work.
Binance as a Crypto Exchange
There are some other popular exchanges but people choose Binance over any other exchange platform. Binance is a platform where you can buy, sell, and trade and it holds 800 cryptocurrencies.
Binance also accepts some services for their users to earn interest or transact using cryptocurrencies.
When many people heard the word “Binance”, They always believe you are into money course, such is the belief they had in me for the past two (2) years. Cryptocurrency has changed a lot of people’s life including the CEO of Binance (….Smile).
Without wasting much of our time, let’s ride into Future Trading
Future trading is a contract in which you agreed to buy or sell a specific commodity asset or security at a set of future dates for a set price.
The word Futures means a buyer/investor to speculate on a future value of a cryptocurrency and on both sides of the seller as well. Those who have speculated markets for a future price are called Traders.
As a beginner, we all see futures trading as a skill that shows a way to get rich quickly but a professional see it as a business but not an investment. Click on the below link for a better understanding
Futures trading: What is Futures Trading and How to Trade Futures
Trading on Binance is great, if you first join Binance, you can buy your first bitcoin or BNB and it can be traded especially if you make sure you buy BNB (Binance Coin)
Trading on Binance is categorized into two; which is spot trading and futures trading but don’t forget that we are discussing futures trading and I will quickly say a simple statement on how Spot Trading functions.
Spot Trading is a method by which you buy a coin or token and you keep it for a future value, the future value is only for the coin or token to increase value. If it keeps decreasing that means you’re losing.
On Spot Trading, you can set a market limit, sell, buy, and enter a limit each for the 2 pairs of a coin you are trading including Take profit.
Now back to future trading in exchange platform, it’s an act whereby you buy and sell of market value and still make a profit on both sides, if you know how Forex works that’s exactly how it also works.
Let’s check out the top question you should ask yourself about Binance’s future trading.
Is Binance Futures allowed in the USA?
According to history in 2019, Binance was banned on regulatory grounds in the united states so as to keep themselves safe for their citizens. In reaction to the law, Binance moved ahead and held a partnership to create a special data usage for the United States which is called Binance.US. This channel differentiates them in that they are not Binance but Binance.US while Binance controls it and only operate in the united states, even with all their functionality, they are still not available all over the states in united state.
How much do you need for Binance?
For you to trade on Binance futures, they accept a deposit-wide range of leverage for accounts with a balance of $0 to $50,000 so that every trader can grow their portfolio, no matter their account balance. If we are to discuss a particular amount for you to start trading on Binance or any other futures trading, then you can start with any amount, the important thing during trading is Risk Management. You don’t pay for my masterclass…. So let me stop there… (smile).
How long can you hold Binance Futures?
The answer is very short, as long as you can, depends on your portfolio
How do you trade futures as a beginner?
To trade future for beginners, you will first come up with a complex task even if you have a trading strategy but the main point is to trade carefully.
- Use small lot size/leverage
- Monitor your portfolio if it needed to be fund
- Follow risk management based on Day-Trader, weekly trader, etc.
- Detect the rest by yourself and learn fully what futures trading is all about by click here
The Binance platform is user-friendly and relatively easy to navigate, making it a popular choice among beginners. In terms of trading volume, however, the exchange lags behind its competitors OKEx and Huobi. I think that in the next few years, Binance will continue to grow because it has all of the tools available to become the very best platform, with a wide range of digital assets and an array of different options for investors.
Futures contracts are paid at the duration of a certain price on the underlying asset therefore it will be called Binance Futures. With the highly volatile nature you are able to take a higher risk margin just in case you want to gain big but waiting for a huge movement and also you are able to reduce your risk exposure by entering a market as a purchase order instantly whenever the price goes down in your criteria. This is how Binance futures work and how you can use them.
Originally posted 2022-09-07 10:26:10.