What is crypto futures trading?
THE cryptocurrency futures trading involves the purchase or sale of futures contracts based on the price of a cryptos. These contracts allow you to expose yourself to the rising (long) or falling (short) of the price of a crypto, without having to hold it directly in a wallet.
You can thus benefit from a leverage to amplify your potential gains, but be careful, this also increases the risk of loss.
Which cryptocurrency to choose for futures trading?
Choosing a cryptocurrency can be a headache when starting futures trading. There may be a tendency to open positions on altcoins who did the most big increase of the day or weekwhich is often a very bad idea.
Indeed, not all cryptos are equal in terms of potential for gains and risks.
Here are some essential criteria to consider when selecting the best cryptocurrencies for futures trading:
Liquidity, a key factor
Liquidity is a central element in trading crypto futures. It is preferable to opt for cryptocurrencies benefiting from a significant trading volume, such as Bitcoin Or Ethereum.
This will allow you toEasily enter and exit your positionswhile avoiding the famous “liquidity holes” who tend to quickly fetch your Stop-Loss orders.
Liquidity gaps, called “liquidity gaps”, also occur when there is a sudden imbalance between supply and demand for an asset on an exchange or broker. This results in a strong price variation, materialized by a long wick on the candlesticks.
Low-liquid exchanges like Kraken or sometimes Bybit are more prone to this than platforms like Bitget Or Binancewhich can better absorb large orders.
Bet on volatility
THE futures trading is particularly interesting on volatile cryptos. Indeed, high volatility provides more short-term trading opportunities.
Significant price movements, both upwards and downwards, allow you to make significant gains in a short time.
THE Bitcoin And Ethereum are among the most volatile cryptos, with frequent and marked price variations.
Others altcoins as the Solana where the Injective can also experience peaks of volatility that are interesting for futures traders.
Be careful though, the high volatility added to leverage effects is a explosive cocktailcertainly profitable for experienced and risk conscious tradersbut potentially disastrous for the less informed traders.
Follow the trend
To put all the chances on your side, favor cryptocurrencies in an uptrend. A buoyant market will offer you more purchasing opportunities and maximize your chances of making capital gains.
Note this carefully: it is always easier to trade in the trend than against the trend! We are often tempted to short bullish movements or, on the contrary, long sudden falls. In leveraged futures trading, this is generally a very bad idea.
From experience, the most profitable trades are frequently the ones you will take following the underlying trendwhether in bearish or bullish trend.
Do not hesitate to train yourself‘technical analysis and to use trendlines to understand the trends on cryptocurrenciesand this on different units of time.
THE Bitcoin often remains a good indicator of the overall health of the market. When the king of cryptos is in an ascending phase, it usually benefits all of the cryptos. altcoins.
Compare fees
THE trading fees can seriously impact your profitability, especially if you are a active trader. Take the time to compare the fees charged by different crypto exchanges which offer futures trading, and available in your country.
In France for example, sinceban on futures trading by French residents on the platform Binancewe have other very competitive platforms like MEXC which offers makers fees at 0% and takers at 0.02%which is particularly interesting.
The best cryptocurrencies for trading futures
Respecting the criteria previously stated, here is our selection of the best cryptocurrencies to trade when starting futures trading:
Bitcoin (BTC)
Bitcoin is the best-known and most traded cryptocurrency in the world. Its high liquidity and volatility still make it a good choice for futures trading.
Ethereum (ETH)
Ethereum is the second largest crypto in terms of capitalization. Its ecosystem of smart contracts and Ddecentralized applications (DApp) makes it a very popular asset for futures traders.
Injective (INJ)
Injective is a protocol of decentralized trading which allows you to trade futures on a wide range of cryptos. Her INJ token is volatile and thus provides opportunities for short term trading. Its ecosystem Challenge in rapid growth attracts more and more users.
Solana (SOL)
Solana is a high performance blockchain which rivals Ethereum. Her cryptocurrency SOL is very volatile and at the same time very liquidwhich lends itself well to futures trading.
On which platform to trade crypto futures?
Here is a comparison of the main platforms for trading crypto futures:
| Platform | Cryptos available | Trading Options | Trading Fees (Futures) |
|---|---|---|---|
| Bitget | 300+ | Futures, Spot, Copy Trading | Maker: 0.02% / Taker: 0.06% |
| BloFin | 250+ | Futures, Spot, Copy Trading, Bot Trading | Maker: 0.02% / Taker: 0.06% |
| BingX | 700+ | Futures, Spot, Copy Trading, Grid Trading | Maker: 0.02% / Taker: 0.05% |
| MEXC | 2000+ | Futures, Spot, Copy Trading9 | Maker: 0% / Taker: 0.02% |
| Bybit | 370+ | Futures, Spot, Options, Copy Trading | Maker: 0.01% / Taker: 0.06% |
We particularly recommend the Bitget platform for its easy handling, an environment optimized for futures trading and the copy tradingwhich is particularly interesting for beginners.
Here are the main steps for trading crypto futures on Bitget :
- Create an account on Bitget and verify your identity
- Deposit funds in cryptos or in fiat currency
If you deposit fiat currency like Euro, convert them to USDT directly on the platform - Access the platform futures trading
- Choose the crypto you want to trade
- Select your levelleverage
- Place a buy or sell order
- Track your location and set stop losses
- Close your position when you reach your profit or loss goal
Strategies for Trading Crypto Futures
There are many crypto futures trading strategies:
- Scalping : carry out many trades over short periods to capture small price movements.
- Swing trading : identify medium-term trends and monitor them.
- Day trading : open and close positions on the same day based on technical analysis.
- Copy trading : automatically copy the trades of the best traders.
Many other strategies still exist, based on tools or advanced indicators. We also recommend using the free platform Trading View to do his technical analyzes before opening trades.
The main thing is to clearly define your strategy based on your profile and stick to it with rigor and discipline.
Regulation and trading of crypto futures
Trading crypto futures is subject to different regulations depending on the country. In France, the AMF forbidden to Binance to offer these derivative products.
But, other platforms like Bitget Or BloFin remain accessible. Find out what is allowed in your country before you start.
What are the criteria for choosing the best cryptos for futures trading?
To summarize and conclude this article, here are the main criteria to consider when selecting the best cryptocurrencies for futures trading:
Unlike long-term investment where the fundamentals of the projects are essential, the futures trading with leverage focuses more on technical analysis.
Inasmuch as crypto futures traders Great importance is placed on studying price charts and identifying specific patterns.
Among the most sought-after Chartist figures, we find the “running flats” and “regular flats”. Once identified, these particular price structures, resulting from the Elliott wave theorycan give interesting entry and exit signals.
In addition to thegraphical analysiscrypto futures traders rely heavily on various technical indicators. Tools like moving averagesTHE RSI (Relative Strength Index)THE MACD (Moving Average Convergence Divergence) where the Bollinger Bands are commonly used to gauge the strength and direction of price movements.
Even if the futures tradings is very often based on identification of bullish or bearish patternsthe selection of cryptos for futures trading is not limited only to technical analysis. You should also take into account other factors such as major news and events related to the projects.
We can cite for example the SEC ETF approvalsor the investment of large institutions in certain sectors such as Blackrock in RWAwhich can have a significant impact on some short term crypto.
By applying these criteria, you will identify the most promising cryptos like Bitcoin, Ethereum, Injective or Solana. Then choose a recognized and inexpensive platform like Bitgetdefine your strategy and get started trading crypto futures cautiously and methodically.
Great opportunities await you in this exciting and booming market!
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