What should you know about BTC futures trading market?


Among multiple cryptocurrencies available in the market, the bitcoin, also known as BTC, is one of the most widely used cryptocurrencies in the market. When Bitcoin first hit the market in 2009, no one was really sure about its future, and how long the buzz would last. Because it was traded on a decentralized exchange, authorities thought this digital currency would lead to illegal transactions, money laundering, and even illegal financing. But the market has come a long way since then.

The value and interest in this cryptocurrency has exploded exponentially. There are many Crypto Trading Platforms that offer trading of bitcoin where they allow peer to peer trading without middlemen or brokers. The buying and selling of assets happen directly between two interred parties. BTC is largely not regulated by governments which leads to trade without the inference of financial institutions. The success and popularity of bitcoin led to emergence of many different types of digital currencies and various methods of trading.

One such popular trading method is known as BTC Futures Trading. The bitcoin futures trading was launched in December 2017 and since then has received a lot of traction. It gives investors exposure the same way you would to a commodity without the need to hold the underlying cryptocurrency. Another feature of bitcoin future contracts is it offers risk mitigation and hedging possibilities. You can easily make a simple calculation of the possibilities and future price from the spot price of Bitcoin. One of the things investors need to keep in mind is wild swings in the spot price as it could significantly alter futures prices for Bitcoin.

Bitcoin futures contracts trade on the Chicago Mercantile Exchange (CME), and the Chicago Board Options Exchange (CBOE) which offers monthly contracts for cash settlement. This means that when the settlement of contract happens the investors can take cash rather than physical delivery of bitcoin. The CME introduces new Bitcoin contracts every month which are then listed and have validity of six months. The value of the future contracts is derived from their respective underlying authority.

Bitcoin futures prices depend on the currency’s spot prices. This is the market’s current price at which Bitcoin can be purchased or sold for immediate delivery. Any move in the latter affects the former. This relationship leads to the prices of the two moving in sync with each other, though there is a difference between the two.

Why should you choose BTCC for Bitcoin Futures Trading?

BTCC is one of the most prominent crypto trading platform in the market. One of the many advantages of using BTCC is the availability of diverse trading programs. You get instant trade execution, VIP trader program, and top-notch market liquidity to cater to the trading requirements of seasoned traders. They also have amazing ratings of 5 and 4.5 stars given by multiple media outlets.

Michael Cainehttps://amirarticles.com/
Michael Caine is the Owner of Amir Articles and also the founder of ANO Digital (Most Powerful Online Content Creator Company), from the USA, studied MBA in 2012, love to play games and write content in different categories.

Share post:


More from Same Author

How Should I Choose The Right Custom Acrylic Pins?

Pins are created all over the world using custom...

Tips For Managing Medical Supplies And Equipment

Hospitals have an essential role to play in looking...

What are Crypto Tokens and how do they work?

Crypto tokens are a subset of cryptocurrencies that exist...

Top best food for a healthy diet

1. Water Drink 8 to 12 cups of water day...