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How does the power of crypto derivatives maximize your returns?

It will usually be a stomach-agitating experience if you buy a cryptocurrency at a higher rate and its value goes down steeply after a while. On the other hand, if you open a short bitcoin futures contract on the cryptocurrency on the point of its peak and close the contract before its price is decreased, you will be greatly benefitted.

Actually, bitcoin shorting involves selling off tokens at a price with which traders feel comfortable. They will wait until the price of the tokens drops and they will then buy them again. Obviously, if the price does not regulate as traders expect, they could either lose cash or lose bitcoin assets, as well, during the process.

Although there are technically a great number of dissimilar answers to the question of the way to short bitcoin, most of them are based on the core values of trading any financial asset.

There is no doubt that the most exhilarating as well as lucrative times to be concerned with Bitcoin trading are during high instability with great price ranges being common during these times. However, as much of the hub of retail Bitcoin traders concentrates on selling high, buying low, and holding, the chances to income as much if not more at the time of great downwards trends and bear markets is completely missed repeatedly.

Although spot trading is currently the most popular way to do business in the cryptocurrency market, crypto derivatives also offer a bounty of benefits to traders.  If you can get it correctly, it is simple, meaning you can buy low and sell high. However, you are supposed to understand that it is very limited, as well.

All derivatives products will usually contain contracts for difference, futures, options, as well as swaps. They also include perpetual futures contracts, offering a particular set of advantages to investors and the market in general.

Some of the notable benefits of crypto derivatives include:

When thinking about crypto that is still a comparatively new concept for normal investors, a crypto derivative offers a more recognizable way to engage this asset category, and thus promote accessibility.

They allow traders to do their business in any market situation. This means that they can gain greatly from price changes in both directions, whether they go short or long.

Crypto derivatives are part and parcel of an active risk administration strategy. This is for the reason that they act as a sort of insurance for the crypto portfolio of traders. If you are a long-term investor, when the cost of your asset drops, you do not need to sell your asset at a loss. Instead, you can choose to go short until the price of the asset increases.

Another distinguished benefit of these derivatives is that you will be capable of trading with leverage. Thus, you will be capable of maximizing the exposure and taking on a sizable position, even with a small margin. Although this will amplify the risk, you can rest guaranteed that you could increase your profits considerably, as well.

#short bitcoin futures #Crypto derivatives

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What are Litecoin futures and BTC Futures Contracts?

Crypto Facilities is the cryptocurrency futures trading platform of the United Kingdom. It has recently declared to launch a derivative product of LTC or Litecoin.  While futures contracts are based on Bitcoin, which is the most popular cryptocurrency in the world, futures contracts have made their debuts across major crypto exchanges across the world by limiting the same offerings for other altcoins.

Litecoin futures contracts, which are denominated in dollars, will have the litecoin as their base currency and they will go live on the Crypto Facilities platform for trading. These contracts, which enable investors and traders to take long, and short positions, will be available with the expiry periods within a week, month, and a quarterly period.

The exchanges that are currently supporting the trading in ethereum, bitcoin, and ripple will allow the Litecoin trading, as well. They offer futures trading of LTC in ethereum, bitcoin, and ripple with the maximum leverage of 50 times to eligible traders.

While the XRP and BTC futures were already available for trading for a moment, Crypto Facilities added the futures contracts, which are based on ETH, a month back. Due to the fame of ETH cryptocurrency trading, the crypto exchange expects the trading volume of ethereum to a maximum of 150 million USD this quarter. That will make up about 10% of its overall trading quantity. With Litecoin futures getting included in the list, the crypto exchanges are set to offer a comprehensive suite of futures trading options derived from all supported cryptocurrencies.

There are several alternative ways to buy and sell Litecoin. The introduction of Litecoin futures will offer a new market for both the institutional investors, as well as retail investors. They will now be capable of finding it easier to arbitrage, hedge, or speculate on the movements of the price of Litecoin. The offering will boost the liquidity in litecoin further. It is believed that Litecoin futures would make it simpler for traders to enter and exit the Litecoin trading.

If you are a novice to the BTC futures market, you should first learn about futures, the way they are traded, and the way to start the trade. Futures will offer you a fast, cost-efficient way to buy and sell financial as well as commodity markets. BTC futures contracts are consistent contracts to trade bitcoins at a set price, on a set future date, in predefined quality and quantity. Traders throughout the world use futures to lessen risks or look for profits easily on volatile markets.

Due to the increasing interest in cryptocurrencies and consumer demand for tools to handle bitcoin exposure, CME options on BTC futures are now trading. The value of options on BTC futures contracts is usually based on the synchronized CME CF BRR or Bitcoin Reference Rate and settles into trading the futures actively.  The major benefit of trading BTC options on futures is that traders will be capable of trading on their market view easily.

Additionally, traders can find the price in transparent futures markets efficiently. They will be capable of saving the offsets on potential margin between options on futures and Bitcoin futures. Moreover, BTC futures contracts enable traders to expand their options for handling the cryptocurrency menace with BTC futures and options on those futures.

#BTC futures contracts #Litecoin futures

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What are BTC Futures and XRP Futures

Bitcoin futures first came to the market through Cboe and CME in December 2017. Back then, bitcoin trading was around its record high. Afterward, OKEx and BitMex joined the bandwagon. Some analysts compete that NASDAQ and JP Morgan have an interest in providing similar products.

BTC futures are common in crypto trading, where traders will guess on the future prices of Bitcoin. They can thus be greatly benefitted depending on the accurateness of their forecasts. However, BTC perpetual contracts are turning out to be the most popular type of cryptocurrency derivative increasingly on the market.

Theoretically, a futures contract is a contract between two counterparty negotiators to buy or sell a commodity or financial instrument at a determined price on a particular future date. The buyer or seller should exercise the condition of the agreement, buying or selling, irrespective of the price of the original asset upon expiry, but in reality, most traded futures are non-deliverables. This means that the distinction needs to be covered, and no delivery takes place.

Bitcoin futures offer benefits to traders like perpetual contracts by functioning as a tool for hedging against future qualms. Moreover, owing to leverage and as a trader can take a short or long position, there is a way for reaping benefits from both increasing and decreasing prices in the markets. A key benefit of BTC futures is that investors can still partake through publicly regulated exchanges in jurisdictions where Bitcoin trading is prohibited.

Ripple is a technology that works both as a cryptocurrency as well as a digital payment system for financial dealings.  The token for the cryptocurrency is premined and it is tagged as XRP. Ripple is the third-major cryptocurrency after Ethereum and Bitcoin by market capitalization.

The main process of XRP is a payment resolution asset exchange as well as remittance structure that is similar to the SWIFT or the Society for Worldwide Interbank Financial Telecommunications system for global money and safety transfers that is employed by banks and financial intermediaries.

When you trade XRP Futures, you will come to know that XRP is more acknowledged for its digital payment procedure than its cryptocurrency form. It works on a peer-to-peer and an open-source decentralized platform, enabling traders to transfer the money in any form seamlessly, whether USD, litecoin, Yen, or bitcoin.

XRP Futures trading uses an agreement system instead of using the blockchain mining through a collection of servers to confirm dealings.XRP transactions exploit less energy than Bitcoin and they are confirmed quickly with very little cost against Bitcoin transactions that employ more energy, take a longer time to verify, and consist of high transaction expenses.

While trading the XRP Futures, the digital currency will work as a bridge currency to other currencies. It does not create differences between one fiat or cryptocurrency and another. Thus, it makes it simple for any currency to be swapped for another. Each cryptocurrency on the ecosystem has its own platform, such as CADBluzelle, USDsnapswap, and BTCbitstamp.

Finally, the working mechanism of XRP trading is such that the cryptocurrency does not operate with a proof-of-work classification similar to bitcoin or a proof-of-stake arrangement like Nxt. Instead, dealings count on a consensus procedure to authenticate account balances and dealings on the system.

#XRP Futures #BTC futures

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How can you do Margin Trading and trade ETH Futures contracts?

Margin trading is the most common term used in the stock market. It usually refers to the process, allowing individual investors to buy stocks that are more than they can afford to. In India, this trading is used to refer to intraday trading, as well.  It is a service, which is normally offered by various stockbrokers.  It entails buying and selling of securities in one single sitting.

The process of margin trading needs an investor to guess or speculate the movement of stocks in a particular session. This is the most sought-after trading method among many traders. This is for the reason that it allows them to make money easily and quickly. With the introduction of electronic stock exchanges, even small traders can easily perform the trading.

The trading process is extremely simple. All a trader has to do is to open a margin account, which will offer him/her the required resources to buy more numbers of a stock at any point of time. For this reason, the broker would loan the money to purchase shares and keep them as security.

If traders want to do business with a margin account, first, they are required to place a demand with their broker to open the account. This requires them to pay a definite amount of money to the broker upfront in the form of cash. This money is known as the minimum margin. This would assist the broker to recuperate some money by squaring off if the trader experiences a loss and fails to recover the money.

Once the margin account is opened, traders need to pay a certain proportion of the total traded value to the broker, which is known as an initial margin. The value will usually br decided by the broker before the commencement of the trade.

ETH, which refers to the Ether cryptocurrency is one of the five leading cryptocurrencies in the world. It is the indigenous currency of Ethereum, which is a worldwide decentralized platform for smart contracts and money. ERC20 tokens are elegant contracts, as well, which continue the Ethereum blockchain.

Ether is a digital currency, which can be sent over the web immediately and inexpensively. It can be used in lots of Ethereum-based dapps and smart ETH Futures contracts, as well. Traders will be capable of performing a margin trade on Ether on any crypto exchange using their derivative.

Starting trading ETH Futures contracts on these exchanges is really a breeze. First, they have to register themselves in any one of these exchanges that will take less than a minute. The registration process involves the supply of only a confirmed email address of the trader.

Traders can then fund their Exchange Wallet with Ethereum. During the registration process, traders will be provided with a unique ETH deposit address. All ETH futures contracts, as well as perpetual contracts on the exchange, are margined and settled in either US Dollars or ETH. Traders can use the currency convertor for their USDC settled contracts to convert ETH into US Dollars. Now, traders can do their business with any number of their ETH cryptocurrency.

#Margin trading #ETH Futures contracts

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How can you Short Bitcoin Futures

Short Bitcoin Futures are the ideal options for investors who think that bitcoin is probable to crash at some time in the future. Shorting the Bitcoin currency can be effectively done in three different ways that include:

1. Using the Margin Trading platform is one of the simplest ways to short bitcoin. This is for the reason that many exchanges authorize this type of cryptocurrency trading, allowing investors to borrow cash from a broker to carry out a trade. It is vital to keep in your mind that there may be an unpredictable factor, which could increase either your income or your losses. Various Bitcoin exchanges, such as  AvaTrade, BitMex, and Plus500, permit margin trading at this point.

If you are finding a way to earn a profit by selling Bitcoin Futures when the BTC Futures Price falls, some options include:

a) You can choose Derivatives such as futures or options, which can offer you short exposure and through margin facilities obtainable on some crypto exchanges.

b) The Bitcoin price can be unstable and go both up and down. Therefore, selling short is usually dangerous in any asset, but can be predominantly risky in uncontrolled crypto markets.

Similar to other assets, Bitcoins have a futures market. In a futures deal, a purchaser agrees to buy a security with an agreement that denotes the time as well as the price at which the security will be put up for sale. If you buy a Bitcoin Futures contract, you will be likely to feel that the BTC Futures Price will increase. This will make sure that you can get a superior deal on the security in the future. However, if you put up a futures contract for sale, it proposes a bearish attitude and a guess that bitcoin will decrease in its price. According to the bitcoin market specialists, selling bitcoin futures contracts is an outstanding way to short the cryptocurrency.

2. Another best way to Short Bitcoin Futures is through Binary Options Trading. You will be capable of calling and putting options, as well. If you want to short the cryptocurrency, you are supposed to implement a put order, possibly by means of an escrow service. This denotes that you would be aiming to be capable of selling the cryptocurrency at the current price, even if the price of the currency drops in the future. This type of trading can be done effectively through numerous offshore exchanges. However, when you trade your bitcoins through these exchanges, you may be required to pay hefty costs.

3. While the selling of Bitcoin Futures might not attract all investors, those who are interested in purchasing and selling real bitcoins could short-sell the cryptocurrency directly. If you follow this technique, then you can sell off tokens it at a cost that you feel comfortable. However, you may be required to wait until the BTC Futures Price drops. You can then purchase tokens again. Of course, the price of bitcoin futures does not regulate according to your expectations. This means that you could either lose bitcoin assets or lose money, as well, during the process.

#Margin Trading #BTC Futures Price

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Know about XRP futures and litecoin futures

Ripple, which is also shortly called XRP, is one of the major cryptocurrencies. It is used to symbolize the transfer of price on the Ripple payment system. The Ripple platform, which is an open source protocol, has been designed for the use of enterprises with the sole aim of enabling cheap and quick transactions. You will be capable of performing XRP margin trade on any exchange by making use of their derivatives, such as futures and everlasting contracts, meaning you can go short or long XRP with leverage.

Similar to other cryptocurrency futures, XRP futures will allow you to buy and sell your XRP cryptocurrency directly. In this XRP spot trading, you will be capable of seeing a huge profit when you deal with your cryptocurrency at the right time, meaning you are supposed to sell it when the price increases.

XRP margin trading through Ripple derivatives will address the shortcoming of the impossibility of trading your cryptocurrency through leverage trading. The XRP futures, as well as the uninterrupted contracts, will enable you to go profit from both the increasing and decreasing price of Ripple. Further, these XRP derivatives will allow you to do the business with high and low investments.

Trading your XRP currency on any exchange is a breeze. All you need to do is to follow three simple steps, such as:

·         Registering your name with the exchange

·         Finding your wallet in the concerned exchange

·         Converting the BTC contracts to USDC ones

Once all these steps are done, you will be capable of trading your Ripple cryptocurrency.

Litecoin was one of the most flourishing coins of 2017, which had an increased value by over 5000% within the year of its launch. At first, this cryptocurrency was put into practice in 2011 after it was divided an updated to the Bitcoin version, which is why it is known as Bitcoin-Lite

The contracts of litecoin futures are usually denominated in dollars.  They will have litecoin as their underlying currency that will go live for buying and selling on Friday on the Crypto Facilities gateway. These contracts on litecoin will usually come with quarterly, monthly, and weekly expiry periods. They facilitate traders as well as investors to take short and long positions.

Over the years, the cryptocurrency market has come across various vicissitudes, so litecoin is no poles apart. If you are puzzled, whether you should put your money in buying Litecoin and you are uncertain of its price will increase or decrease in the future, then you need to know some basic facts about this cryptocurrency.

Litecoin is considered the seventh major cryptocurrency in the world with a market capitalization of more than $12 billion, which makes the coin more popular amid traders. Just similar to Bitcoin, Litecoin is a digital currency, as well, which is built on a similar blockchain like that of Bitcoin. You can use the cryptocurrency to make your payments easily and quickly. The major benefit of litecoin futures when compared to that of Bitcoin is the speed. Actually, Litecoin is also referred to as a "Lite” coin for the reason that it is extremely faster than Bitcoin by four times.

#litecoin futures #XRP futures