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How To Make A Fortune Trading Bitcoin Futures On BTCC
Bitcoin futures are another type of financial instrument where a trader agrees to buy or sell an asset, in this case, Bitcoin, at a set price on a set date in the future. Typically, they are used for risk management to lock in the price for traders that want to avoid volatility. With Bitcoin and cryptocurrencies being very volatile, they are quite useful for trading crypto assets.
As a trader, you can enter a futures contract through a long or short position. A long position is where you commit to buying an asset at a given price on a given date. As for the short position, you promise to sell the asset at a given price on a given date.
One platform where Bitcoin futures can be traded is on BTCC, a leading digital asset platform that offers leverage of up to 100x on USDT perpetual contracts that support nine major crypto coins.
Below we will take a look at how to make money while trading Bitcoin Futures on BTCC.
Getting Started On BTCC
- Visit the official website at btcc.com and click on ‘Register.’ You will be taken to a page that gives you two options to sign up on the exchange, either using your mobile phone number or email address. Select your preferred mode and enter the necessary details. Remember to set a strong password.
- Verify your account by entering the verification code sent to your phone or email address and login into the account.
- Once logged in, its time to set security for the account. Click on the user icon where your number or name appears and select ‘Account Security.’ Set up the two-factor authentication (2FA) to make your account more secure.
- Proceed to “Identity Authentication” since that’s the only way you will be able to deposit, trade, and withdraw without limitations. The platform’s KYC is made up of three levels. The first requires an email or mobile number, the second requires official names, ID card/passport number, and the third requires you to submit the front and back handheld pictures of the ID/passport.
- Deposit funds into your account and begin trading. Deposits can be made in USDT, and this feature can be assessed by clicking on the ‘Assets’ icon and selecting ‘Deposit.’ Once funds reflect on your account, it’s time to trade.
Trading On BTCC
BTCC offers perpetual contracts that represent contracts that don’t have a set expiration date, and they typically track the spot price or the current market price of BTC. Here you can trade Bitcoin with 10x, 20x, 50x, and 100x leverage. Then there are daily and weekly contracts.
The weekly contract longest holding period is a week and has a commission rate of 50% off when compared to perpetual contracts and has no rollover fees. Here BTC can be traded with 10x, 20x, 50x, and 100x leverage.
On the trading dashboard, you will see various tools you can utilize for technical analysis, including candlestick chart, time-sharing chart, quotes that are detailed, and different technical indicators. The platform also offers a mobile trading app that allows users to trade from anywhere using their mobile phones.
On the platform, you can trade CFD by either going long or short. So, if you think the price of BTC may rise, you can buy a BTC CFD. If the market price meets your expectations, you will profit from the price rising. On the contrary, if you think BTC price may fall, you can choose to sell a BTC CFD. If the market price meets your prediction, you will profit from the price falling.
Now that you have deposited USDT in your account, you can place a trade from the trading dashboard on the right side where there are three options; market order, limit order, and stop order. Market order means the trade will be executed immediately to the best available price on the market. In contrast, the limit order requires one to set the price you would like to pay for the order to be executed. The advantage of the limit order is that it allows one to set price, and you get to pay lower fees.
Trading can be done with the margins we mentioned above, but to be safe, avoid trading with leverage of 100x since you will be liquidated when the price drops by just 1%. At least a leverage of 20x is better, but still, it means you will get liquidated once the price goes down by 5%.
Another critical thing you have to do is set a stop limit, which protects you once the price drops and protects one from getting liquidated.
