Main Takeaways
Binance Futures is the world's leading crypto derivatives marketplace that offers traders a seamless platform to benefit from cryptocurrency price movements with precision and ease.
Crypto futures trading is capital-efficient, allowing traders to amplify potential returns while using less initial capital compared to traditional trading methods – however, it also comes with heightened risks.
Due to the inherent volatility in cryptocurrency markets, implementing a robust risk management strategy is essential for successful futures trading, helping traders protect their investments and navigate market fluctuations effectively.
Disclaimer: Digital asset prices can be volatile. Do your own research. See full terms here and our risk warning here and below. Binance Futures products are restricted in certain countries and to certain users. This communication is not intended for users/countries to which restrictions apply.
Every month, trillions of dollars flow through the cryptocurrency market as traders seize opportunities to generate profits, regardless of market direction. Crypto derivatives contracts empower traders to capitalize on price movements by going long (buying low, selling high) or short (selling high, buying low).
Crypto derivatives enable traders to gain exposure to a wide range of digital assets without owning them. These instruments also allow market participants to hedge against volatility and speculate on the future value of specific cryptocurrencies. The use of leverage improves capital efficiency as investors don’t have to lock up large amounts of capital, unlike on the spot market.
Available 24/7 on platforms like Binance Futures, these contracts require prudent risk management, making it essential to understand the basics before investing.
What is Binance Futures and Why Use It?
With over 500 trading pairs and unmatched liquidity, Binance Futures has quickly become the world's premier crypto derivatives platform, helping millions of traders minimize risk and trade confidently. It offers unmatched liquidity, advanced analysis tools, and beginner-friendly features such as Copy Trading and risk-free Mock Copy Trading.
In this guide, we'll walk you step by step through your first trade on Binance Futures. Join over 29 million active traders and start your futures trading journey today!
Steps to Get Started with Binance Futures
Getting started with Binance Futures is straightforward and involves just a few simple steps. You'll need to sign up for a Binance account, open a Binance Futures account by passing a simple quiz to activate it, and verify your identity to unlock all features. Once verified, make your first deposit of fiat or cryptocurrencies to fund your account. With these steps, you'll be well on your way to trading on Binance Futures.
Step 1: Sign Up for a Binance Account
If you already have a Binance account, proceed to Step 2. If you don’t have an account yet, go to Binance and click [Register] at the top right corner of the page before moving on to the next step.
Choose [Sign up with phone or email], [Continue with Apple], or [Continue with Google].
Select your [Country/Area of Residence] and click [Confirm].
Click [Create Personal Account], or for businesses, click [Create Entity Account].
Enter your [Email], create a strong [Password] for your Binance account, and click [Next]. You’ll be asked to enter an [Email Verification Code] and click [Submit].
Enter your [Phone Number] and click [Next]. You’ll be asked to enter a [Phone Verification Code] and click [Submit] to create your Binance account.
Step 2: Open a Binance Futures Account
To open a Binance Futures account, go to Binance Futures and click [Open Account].
You need to pass a quiz to activate your Binance Futures account, so click [Take Quiz] and make sure to answer all questions correctly.
Step 3: Verify Your Account
Please note that you must verify your identity to unlock the wealth of features that Binance has to offer. This step is critical to ensuring a safe trading environment for everyone. Go to Binance, then click [Profile] - [Identification].
Make sure you’ve selected your [Residential country/region], then click [Start Now]. You’ll be asked to fill in your [Personal Information], provide a [Government-Issued ID], pass the [Facial Recognition] test, submit [Proof of Address], and complete a simple [Questionnaire].
Step 4: Make a Deposit
Before making your first trade on Binance Futures, you must deposit fiat or cryptocurrencies. To deposit fiat, go to Binance and click [Buy Crypto] at the top left corner of the page.
Select the [Currency] and the method you’d like to use to make your first deposit, click [Continue], and follow the instructions.
To deposit cryptocurrencies, go to Binance and click [Wallet] - [Fiat and Spot] at the top right corner of the page.
Click [Deposit] at the top of the page.
Select the [Coin] you’d like to deposit into your Binance account, choose your preferred available [Network], and follow the instructions.
Once you have sent your funds to your Binance wallet, you can check the deposit status on a blockchain explorer using the transaction ID information. Your incoming deposit will also be available under Transaction History.
Please note that you must transfer funds to your Binance Futures wallet to make your first crypto derivatives trade. To do so, go to Binance and click [Wallet] - [Futures].
Click [Transfer], select the [Coin], enter the [Amount] you’d like to transfer to your Binance Futures wallet, and click [Confirm].
Step 5: Make Your First Trade
Now that you have verified your Binance account and transferred funds to your Binance Futures wallet, you’re ready to make your first trade.
To make your first trade on Binance Futures, go to Binance Futures and choose between [USDⓈ-M] and [COIN-M] Futures Contracts.
Here you can learn more about USDⓈ-M and COIN-M Futures Contracts.
Select the [Futures Contract] you would like to trade at the top left side of the page.
Use the [Price Chart] to identify potential trading setups based on patterns or any other technical indicator available on Binance Futures.
Select the [Margin Mode], which will only apply to the selected Futures Contract, then choose between [Cross] and [Isolated] and click [Confirm].
Here you can learn more about Cross and Isolated Margin Mode.
Now, you need to [Adjust Leverage] and click [Confirm]. Please note that using high leverage carries high risks and shouldn’t be done without a robust risk management strategy. Learn more about leverage!
Select [Type of Order] - [Price] - [Size], toggle the [TP/SL] feature to set up your [Take Profit] and [Stop Loss] orders, and choose between a [Buy/Long] or [Sell/Short] position.
Here you can learn more about the Type of Orders and TP/SL Orders.
Final Thoughts
Now that you know how to set up your Binance Futures account and place your first trade, why not put your new skills into action?
Crypto derivatives trading is an excellent way to boost your capital efficiency and protect your portfolio by hedging against spot market volatility. However, it’s crucial to have a robust risk management strategy in place to minimize potential losses if market conditions move against your predictions.
Not ready for live trading yet? No problem. Try our mock trading environment first, where you can practice your strategies and sharpen your skills at your own pace – all without risking real funds. Once you're confident, seamlessly switch to live trading and leverage the powerful tools offered by the world’s leading crypto derivatives platform, Binance Futures.
Further Reading
10 Reasons Why You Should Trade on Binance Futures
Binance Crypto Futures Trading Fees: Maker vs. Taker Costs – and How to Minimize Them
Top Lead Trader Tips: Aniki on Trusting Algorithms Over Emotions
Risk Warning: Digital asset prices can be volatile. The value of your investment can go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Futures trading, in particular, is subject to high market risk and price volatility. All of your margin balance may be liquidated in the event of adverse price movement. Past performance is not a reliable predictor of future performance. Before trading, you should make an independent assessment of the appropriateness of the transaction in light of your own objectives and circumstances, including the risks and potential benefits. Consult your own advisers, where appropriate. This information should not be construed as financial or investment advice. To learn more about how to protect yourself, visit our Responsible Trading page. For more information, see our Terms of Use and Risk Warning.
No Representation
This content is presented to you on an "as is" basis for general information and educational purposes only, without representation or warranty of any kind. It is not intended or should not be construed as financial or investment advice, nor is it to recommend or intend to recommend the purchase or sale of any specific product(s) or service(s).
Responsibilities
You are solely responsible for your investment decisions, and Binance is not liable for any losses or damages you may incur. The risk warning described herein is not exhaustive, therefore you should carefully consider your investment experience, financial situation, investment objective, risk tolerance level and consult your independent financial adviser as to the suitability of your situation prior making any investment. For more information, see our Terms of Use and Risk Warning and Responsible Trading Page.
The products and services referred to herein may be restricted in certain jurisdictions or regions or to certain users in accordance with applicable legal and regulatory requirements. You are solely responsible for informing yourself about and observing any restrictions and/or requirements imposed with respect to the access to and use of any products and services offered by or available through Binance in each country or region from which they are accessed by you or on your behalf. Binance reserves the right to change, modify or impose additional restrictions with respect to the access to and use of any products and/or services offered from time to time in its sole discretion at any time without notification.
