Cryptocurrency futures allow you to trade digital assets without taking ownership of the underlying tokens. This comes with several benefits – such as not needing to worry about wallet storage, low fees, and the ability to open a long or short position. In most cases, you can also trade cryptocurrency futures with leverage.
In this guide, we explain how cryptocurrency futures work and which online trading platforms allow you to access this speculative marketplace.
#1 Cryptocurrency Broker – eToro
How to Trade Cryptocurrency Futures – Quick Guide
If you’re looking to trade cryptocurrency futures right now – follow the step-by-step guide below to get started in under five minutes. Take note, the guide below will show you how to trade crypto CFDs – which work in the same way as futures and are readily accessible for retail clients.
- Step 1: Open an eToro Account: eToro allows you to trade leveraged cryptocurrency products in a regulated and low-cost environment. You can open an account with this broker by entering some personal information and choosing a username and password.
- Step 2: Upload ID: eToro is a regulated brokerage that gives you access to leveraged cryptocurrency markets. As such, before you can start trading, you will need to upload some ID. This can be a passport, driver’s license, or national ID card.
- Step 3: Deposit Funds: You will need to deposit some funds before you can start trading cryptocurrencies. You can do this with a bank wire, ACH, Paypal, Skrill, Neteller, or debit/credit card.
- Step 4: Choose Cryptocurrency Market: eToro offers dozens of tradable markets – all of which can be accessed with leverage. Click on ‘Trade Markets’ followed by ‘Crypto’ to choose the market that interests you.
- Step 5: Place Trade: Finally, you will need to choose between a long or short position – depending on whether you think the crypto asset will rise or fall. Enter your stake, choose your leverage multiple, and click ‘Open Trade’ to confirm the position.
Take note, unlike traditional cryptocurrency futures, CFDs at eToro never expire. As such, you don’t need to worry about the position being closed in three months’ time – should you wish to keep it open for longer!
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. 67% of retail investor accounts lose money when trading CFDs with this provider.
Best Place to Trade Cryptocurrency Futures
In order to trade cryptocurrency futures, you will need to have an account with a suitable broker or exchange. Below you will find an overview of the best places to trade cryptocurrency futures right now.
- eToro – Overall Best Place to Trade Cryptocurrency
- Binance – Popular Exchange With a Range of Cryptocurrency Futures
- Kraken – Trade Cryptocurrency Futures With 50x Leverage
There is quite a disparity between each of the three cryptocurrency futures platforms listed above –…