What is the meaning of futures trading in the context of cryptocurrency?

1 answers

• Mar 18, 2022 · 3 years ago
  In the context of cryptocurrency, futures trading refers to the practice of buying or selling contracts that represent a specific amount of a cryptocurrency at a predetermined price and date in the future. This allows traders to speculate on the price movement of cryptocurrencies without actually owning them. Futures trading can be done on various cryptocurrency exchanges, including BYDFi, where traders can enter into contracts and trade with leverage. The advantage of futures trading in cryptocurrency is that it provides opportunities for profit in both rising and falling markets, as well as the ability to hedge against price volatility. However, it's important to note that futures trading also carries risks, and traders should carefully consider their risk tolerance and trading strategies before engaging in this type of trading.
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