Crypto Futures Trading Strategy for Beginners

Silahkan tunggu orang sabar di sayang mantan . Loading...

The crypto market continues to attract new investors to profit from it, because there are already many methods to make money in crypto apart from investing, one of which is trading crypto futures contracts.

One of the most popular ways today is trading, aka trading, which can be carried out in short-term transactions, taking advantage of the high volatility of crypto asset prices. Profits can be achieved in less than 24 hours.

And for traders who have minimal capital but still want to earn big from trading, then futures or derivatives contracts are choices that should be taken.

What distinguishes futures contract trading from spot market trading is that futures contracts can open buy and sell positions. Meanwhile, the spot only allows long positions.

In addition, futures contracts have a leverage feature, which can maximize minimal capital, to still get large returns, up to a hundred times.

“Leverage is leverage, where traders can borrow capital from exchanges to transact crypto in multiples ranging from ten to a hundred times,” said CoinEx Founder and CEO of crypto exchange, Haipo Yang.

He continued, with leverage, traders with funds as small as US$100 can open positions for transactions of US$1,000. But, of course risk management is required for the use of leverage in trading futures contracts.

If it had to be described, leverage is a double-edged sword that can be both profitable and detrimental. This will depend on how reliable and wise the trader is in using it.

“At CoinEx, video tutorials and lessons for futures trading are comprehensive and accessible for free. Novice users can learn about it before deciding to trade futures contracts and use leverage,” said Haipo.

And to make more profit than loss in futures trading is, implement strict risk management and bigger profit and loss ratio.

More stringent risk management is, we must decide in advance how much loss we can accept from a single transaction. Typically, this ranges from one to three percent of the capital. This will be facilitated by the use of stop loss.

Meanwhile, Haipo explains the profit and loss ratio (risk reward) as how much profit will be obtained compared to the loss that will be received in one transaction. Technically, a good ratio is 3:1, ie the profit value is three times greater than the loss value. This was included in the trading plan from the start.

"For example, by applying a 3:1 ratio, when you make three transactions, you gain once and lose twice, you are still in a profit position because of the size of the ratio," concluded Haipo.