A crypto is a digital form of currency that operates through a decentralized system. They are encrypted to ensure secure transactions.
Thanks to advanced coding, the safety of storing and transmitting cryptocurrency data between digital wallets and publish ledgers is ensured.
Blockchain technology, which is a distributed public ledger, is used in most cryptocurrencies. The ledger records all transactions and is updated and maintained by currency holders.
The process of minting or creating new cryptocurrencies is known as mining and it is done by solving complex mathematical problems using high-powered computers. This creates new coins.
On the other hand, cryptocurrencies can be bought from brokers. A cryptographic key enables a user to transfer his or her crypto currency from one person to another. Examples of cryptocurrencies are Bitcoin, Ethereum, Litecoin, etc.
Trading platforms
A cryptocurrency trading platform is similar to a stock exchange. It allows transactions of digital currencies such as Bitcoin, Ethereum, other altcoins, and Tether.
These platforms are accessible through mobile apps or desktop applications. Firstly, one must decide on the trading platform and register with the crypto exchange to open an account.
Funds are deposited in the user’s accounts or crypto wallets after registration. Thereafter users can start trading by buying or selling various cryptocurrencies. The digital wallets can be used to track balances and transfer funds.
Futures trading
Futures trading involves financial contracts known as Futures which allow to buy or sell an underlying asset like cryptocurrencies at a predetermined price and date in the future regardless of market rates at the expiration date.
It allows investors to hedge against price movements or speculate on future asset values.
Best crypto futures trading platforms
There are many trading platforms for cryptocurrencies in the market that cater to traders looking to engage in future contracts. Some of them are listed below.
Binance Futures
Binance is a well-known exchange and it offers a range of trading pairs, leverage options, and good rates. It is one of the most popular choices. It has the largest trading volume and is often double the daily volume of its next closest competitor.
Binance Futures is the derivatives arm of the Binance. It has more than 340 derivatives trading pairs and a wide range of cryptocurrencies.
The diversity and the range are the biggest advantages of Binance Futures. Binance futures also offer the benefit of choosing futures transactions denominated in stable coins or tied to underlying cryptocurrencies.
OKX Futures
One of the strong competitors for Binance. It offers futures trading and supports a wide range of cryptocurrencies.
It oversees a daily trading volume of more than a billion dollars. A range of crypto contracts, perpetual swaps, futures, and options are offered in the OKX trading platform.
OKX also offers cryptocurrency trading in altcoins and major coins. The biggest advantage of this platform is its extremely competitive transaction fee structure which can be decreased even further by holding OKX tokens and with high trading volumes.
OKX also has a trading bot marketplace that allows users to “follow” trading bots created by others. The users can create their trading bots.
MEXC
MEXC is suitable for short- and long-term traders as it specializes in perpetual futures trading, eliminating the need for expiry dates.
Two types of perpetual futures are offered in MEXC, one backed by USDT and the other settled in underlying cryptocurrency.
MEXC offers support for a range of altcoins like Polygon, Solana, Ethereum, Ripple, and many others. It also provides a leverage of 200 times.
It is to be noted that MEXC does not offer options trading. It also offers very low trading fees in the range of .02% when trading futures.
The platform also boasts high liquidity. MEXC is also lightning-fast in executing transactions with the capability to handle up to 1.4 million positions per second.
Bybit Futures
Bybit Future is similar to Binance in the products offered for trading. In the initial days, BYbit was an exclusive futures trading platform and later spot market trading was incorporated into the platform.
Futures contracts in Bybit can be settled in either USDC or USDT stablecoins, which are pegged to the dollar so as to limit volatility during transactions.
Futures contacts are available in a wide range of cryptocurrencies like Bitcoin, Ethereum as well as altcoins. The platform also provides a very high leverage limit of 100x
Kraken
A cryptocurrency exchange that was established in 2011 and has earned a reputation as a trusted platform for transacting in Futures.
Kraken has been known for its spot markets, but it also provides dedicated futures trading where a range of cryptocurrencies are available for trading in various currencies.
Kraken crypto futures have limited accessibility in terms of regions as clients from the US, UK, Australia, Canada, and Italy would not be able to use the platform.
Conclusion
The features of each platform vary and the various factors should be considered. Factors like fees, supported coins, leverage options, and user experience influence the choice of platforms.
It is recommended to do the relevant research before deciding on a platform.
