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What Are Bitcoin Futures?

what are bitcoin futures

What are Bitcoin futures?

Futures are not just for physical assets; they can be traded on financial assets as well. With Bitcoin futures, the contract will be based on the price of Bitcoin and speculators can place a “bet” on what they believe the price of Bitcoin will be in the future. In addition, it enables investors to speculate on the price of Bitcoin without actually having to own Bitcoin.

What about futures?

Futures are an agreement to buy or sell an asset on a specific future date at a specific price. Once the futures contract has been entered, both parties have to buy and sell at the agreed-upon price, irrespective of what the actual market price is at the contract execution date.

What are futures in crypto?

Crypto futures are a way to trade the future price action for crypto assets. These futures contracts (in this case, Bitcoin) can be bought or sold at will by the trader at any point within the contract time frame, as market supply and demand dictate the price of the contract and the underlying asset (Bitcoin). Learn more about buying (going long) and selling (going short) Bitcoin futures, click right here.

Will Bitcoin futures effect price?

Only this time, bitcoin futures will affect the price to the upside, as purchases of real bitcoin from exchanges become necessary to settle the contracts. Assuming the majority of those who own the contracts choose to hold most of their gains in crypto, these gains will be cumulative.

Where can I trade BTC futures?

Start trading Bitcoin futures on Phemex today! You will receive up to $72 as Welcome Bonus. It only takes few seconds to register. Trade on the fastest cryptocurrency derivatives exchange. Don’t miss out!


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Updated on February 10, 2020

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