The worth of the cryptocurrency market was USD 237.03 billion in 2019 which is up in value from 128.78 billion in 2018. The recent Bitcoin and ETH bull run pushed the market to an ATH of 1 trillion dollars at the time of writing as per Statista. Having said that, most people have taken the market fire as a FoMo moment. But lately, a new world is going abuzz, Futures trading at exchanges.
Most exchanges like PCEX Member have planned to adopt the same for giving better leverage to traders. So, if you wish to know futures in crypto, this piece will help you in getting everything that you need to know about it. PCEX Member as a top cryptocurrency exchange in India provides guides and DIYs to crypto enthusiasts and new traders to explore this domain.
Futures Trading in Crypto: Definition
Futures trading in crypto â€“ as the phrase echoes - is an investment decision ruled by speculation of the crypto asset value at a certain point of time in the future often called as Expiry Date of the Futures contract. The buyer and seller â€“ both have one single goal, i.e., to make a profit out of the trading.
Their contrasting directional views about the price of the underlying crypto assets, serve as the foundation of the trading, and the loss of one party is the profit of the other, and vice versa. The trading is facilitated by a crypto exchange platform like PCEX Member. It allows you to buy and sell crypto units in Fiat currencies like BTC to USD or BTC to INR. The seller at its sole discretion can leave the futures contract at any point of time by finding a suitable buyer for his or her futures contract.
Futures Trading in Crypto is similar to the futures trading that takes place at a stock or commodity market. Both markets operate under the same principle â€“ demand and supply. When people are willing to pay more for a specific product, prices hike up; while prices drop when no one pays attention to it or more people sell their ownership of the said product.
Futures Trading: Crypto Vs Traditional Stocks
Higher ROI and greater liquidity than that of the traditional investment, along with widening acceptance of crypto, easy and simple international transactions, zero or low transaction fees, and anonymity and privacy has made crypto trading a better investment option for investors. Using PCEX Member, you can bypass the stockbroker or mediator and save on the transactional fee. Remember, a penny saved is a penny earned!
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About the Author:
Rahul Kohli is a writer by day and reader by night, he loves to share his opinion about cryptocurrency and the stock market through articles, blogs, podcasts, and videos. Find him on Twitter here