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3 Benefits Of Trading Bitcoin Futures Compared To Bitcoin

Published 20/10/2022, 17:27
© Reuters.  3 Benefits Of Trading Bitcoin Futures Compared To Bitcoin
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Despite the current crypto bear market, Bitcoin has still greatly appreciated over the last 5 years. IIn this time, it went from $5,700 to $19,005!

But investors can use futures contracts to trade Bitcoin instead of holding the coin itself.

Here are a few key advantages of Bitcoin Futures:

Leverage

One bitcoin is currently worth $19,005! With Bybit, you can set the leverage up to 100x, letting you have exposure to $1,000 worth of bitcoin while only contributing $10 as capital.

Simplicity

Even with crypto exchanges, buying and selling crypto can be tricky. For example, many crypto experts recommend using hard wallets to safely store crypto.

With futures, you can gain exposure to Bitcoin without worrying about your account being hacked!

Profit In Bull And Bear Markets

Investors can profit off Bitcoin if the price rises or falls by going long or short a contract, respectively. These contracts can be tools to either speculate increasing prices and/or hedge against risk.

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© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
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