Why Should one trade Futures via Binance Futures trading

by Trailing Crypto cryptocurrency experts

There are different methods to trade cryptocurrencies and each of these methods works in different ways. These methods may not be suitable for everyone as different traders trade different cryptocurrencies and have different trading strategies. With certain crypto assets becoming highly popular and suitable for traders to achieve increased ROI. One such approach that is gaining huge popularity among traders is futures trading. This kind of trading method provides better opportunities to the traders as compared to spot trading and options trading.

 

Now the question is: What the heck is Futures Trading?

 

Futures Trading refers to the method of speculating on the price of crypto assets without actually owning them. This method enables traders to bet on the crypto asset’s future price. Needless to say, Binance Futures are the most popular type of crypto futures contracts these days. Futures are the type of crypto derivatives product that allows traders to hedge against volatile markets and ensure they can buy or sell a crypto asset at a set price in future.

 

Binance Futures

This is one of the most liquid derivatives exchanges in the crypto trading market offering a huge selection of crypto trading pairs and giving traders boundless opportunities to earn profits. In this trading method, the traders can even benefit from the smaller price fluctuations while implementing some built-in strategies including grid trading or TWAP.

 

This platform allows traders to short Bitcoin and other cryptocurrencies while hedging their positions and improving risk management to protect their crypto portfolio during the bearish market. In this kind of trading, you can use leverage up to 125x Bitcoin futures on Binance exchange. However, one should keep in mind that leverage/margin trading is not recommended for beginners as it involves a significant amount of risk. There are chances that you may lose your capital a lot quicker than anything else.

 

Why should you trade futures with Binance?

Trading futures through Binance comes with a huge range of benefits for the traders as they can take advantage of low trading fees, higher liquidity, and a wide range of leverage options for different cryptocurrencies. Some of the major benefits of trading futures with Binance include:

 

1. Huge selection of pairs

There are more than 500 crypto-to-crypto trading pairs available on Binance Futures. Users can trade anything from the most popular coins like BTC and ETH to DeFi tokens and memecoins, etc. Additionally, new coins are also updated time to time to ensure the best trading experience.

2.    Lower trading fees

This platform has an exceptionally low fee structure. On Binance futures, the maker/taker fee is as low as 0.000%/0.017%. This is a fact popular among traders placing multiple trades on daily basis.

3.    Security

Multiple security features like KYC, 2FA, etc. are available on Binance Futures helping users to protect themselves from any nefarious actors.

4.    Multi-language support

Binance offers incredible support to its traders in 17 different languages. That’s amazing! Isn’t it? Additionally, it is an extremely easy-to-use interface that allows you to participate in the crypto revolution easily.

5.    Liquidity

Binance futures is one of the most liquid derivatives exchanges in the world which means the traders can always expect to get their buy or sell orders filled quickly without bothering about slippage.

 

Why expert traders prefer futures trading?

The spot market allows traders to buy crypto assets at any time, but with a few limitations. Investors are not only limited to buying with only the capital income they have, and they have to hold some assets often before taking profits. On the other side, Futures contracts allow traders to diversify their portfolios and increase their exposure to a variety of crypto assets without having to hold that asset. The use of leverage allows them for better capital efficiency as they don’t have to lock up their entire capital to buy a large amount of cryptos.

 

Binance Futures offers access to a wide range of features to traders including advanced order types, algorithmic trading, and Binance trading bot offering a seamless experience for both beginners and expert traders. They can make use of OCO orders where two orders can be placed simultaneously. There will be one primary order and one secondary order, and if any of the orders get filled, the other one will be canceled automatically.

 

Binance grid trading

Grid trading is an important feature of the Binance Futures platform. The Binance trading bot works on this trading strategy. The trading bot automates the buying and selling of futures contracts by placing orders at preset intervals within a preconfigured price range.

This kind of trading enables traders to benefit the most during high market volatility. One of the key benefits of this kind of trading is that the traders can even earn profits from the smaller price changes in the market. The more the grids set, the higher will be the frequency of trades to be executed.

 

Novice traders may find it difficult to set parameters for grid trading on their own. And, for this reason, third-party platforms like TrailingCrypto offer Binance trading bots with preset strategies to help improve the trading experience for beginners. 

 

With auto parameters, anyone can create a grid trading strategy with just one click.

To start Binance futures trading, firstly, you need to create an account on Binance. This process is quite easy, but you have to go through the ID verification feature. Once you have created the account and funds are deposited, you can transfer them to your Binance futures account trading wallet.

 

Trading futures on Binance is relatively simple and ensures a great experience. Thanks to its easy-to-use interface and security features. Both beginners and expert traders prefer crypto futures as these have become the most popular options among others. Trading Binance Futures via TrailingCrypto allows you to manage your trades and keep track of your portfolio on Futures. The platform has its own trading bots which can automate the trading process and delivers a smart trading experience to beginners.

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Created on Mar 23rd 2023 04:07. Viewed 125 times.

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