In the volatile world of crypto, futures contracts are seen as a double-edged sword. They can turn you into a pack leader – or burn your account in just a few clicks. But in reality, who should use Futures? Is knowing about margin enough to play?
No! And this article will analyze frankly and in detail, so you know whether to step in – or to stay out.
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🔍 What is a crypto futures contract?
Futures in crypto are a form of derivative trading, where you do not need to own the asset ($BTC , $ETH , $SOL ) but can still place buy/sell orders based on expected future prices. You earn from price differences, not from holding coins.
Key characteristics:
• Trading in both directions: Buy (long) when expecting prices to rise, Sell (short) when predicting prices to fall.
• Using leverage: Quickly increases profits, but also doubles the risks.
• Liquidation: If the price moves too far against you, your account can be wiped out before you can react.
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✅ Who should use futures contracts?
Below are the groups of people who are truly suitable for Futures – based on skills, psychology, and clear trading goals:
1. 💼 Professional traders with a clear strategy
• Knowing how to use technical analysis (TA): identifying trends, resistance – support, reversal signals…
• Have a risk management system: always set SL/TP, calculate positions suitable to capital.
• Not getting carried away by emotions: no FOMO, no revenge trading, no opening positions on a whim.
• Understanding the impact of leverage, funding rate, and volatility.
⚠️ These people view Futures as a controlled profit tool, not as a “casino”.
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2. 🧠 People with a risk hedging mindset
• They hold a large amount of coins (spot) and use Futures to protect the value of their portfolio when the market is bad.
• For example: if holding ETH long-term but noticing strong downward signals, they can open a short position on ETH to reduce risks.
• This is a popular technique in large funds or institutional traders.
🛡 Futures at this point is not for quick profits, but to preserve capital – something most retail traders overlook.
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3. 🧪 Someone who has traded spot for a long time and needs advanced tools
• Already have real experience, understand the essence of the crypto market.
• Able to control emotions in high market volatility conditions.
• Want to upgrade strategies: breakout trading, trend surfing, leveraging short-term news…
🎯 They use Futures to optimize capital efficiency, not for “gambling 1 to 100”.
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❌ Who should not touch Futures?
This section is just as important. If you belong to one of the 5 groups below, Futures will be your money-making machine:
1. 🐣 Newcomers to the market
• Not understanding candles, not knowing what support/resistance is, having no specific strategy → very easy to be psychologically manipulated by the market.
• Most people FOMOing into futures at this stage get liquidated after a few weeks.
2. 🧨 Someone addicted to strong emotions, likes the feeling of “a big win”
• Trading without a plan, all-in, over-leveraging.
• Trading like gambling, just 1-2 times against the trend can wipe you out.
3. 💸 Those who do not have capital management thinking
• Not setting Stop-Loss.
• No clear entry/exit plan.
• Not allocating capital, opening positions indiscriminately based on emotions or group/chat advice.
4. 🧃 Those who only know how to copy trades, do not know how to read charts
• Relying entirely on “idols”, “VIP groups”, or AI signals without understanding the essence.
• When the market reverses or does not match the scenario, not knowing how to handle it, and often holding the wrong position until it burns out.
5. 💀 People who view Futures as a shortcut to getting rich quickly
• The mindset of “quick wins”, wanting to turn $100 into $10,000 in a week.
• This group is the lifeblood for the market to function – and often the biggest depositors.
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⚖️ Futures are not wrong, only the users are wrong in their methods.
Many people blame futures as a “trap”, “scam”, “disguised gambling”. But in reality, futures are just a tool. Like a knife – it’s up to the wielder whether to use it to cut meat or harm others.
👉 If you understand it, master it – futures can help you earn money faster, more flexibly, and more efficiently than spot.
🚫 If you use it wrong – it will wipe your wallet clean, along with feelings of frustration, self-doubt, and distrust in the market.
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🎯 Conclusion: Who should – who should not?
🚀 Suggestions for those wanting to enter Futures
1. Trade demo first (Bybit, Binance Futures have virtual accounts).
2. Start with the lowest leverage, and develop the habit of setting SL/TP seriously.
3. Keeping a trading journal – only daring to increase capital after 30 trades.
4. Read carefully: “Risk management is more important than technical analysis”
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📌 Reaffirm:
Futures are not for everyone – only for those who understand what they are doing.