Thinking about diving into futures trading on Binance? Here’s a quick guide to get you started to help you understand the basics and avoid common mistakes.
What are Binance futures contracts?
It’s a platform that allows you to trade cryptocurrency contracts (not actual currencies), with the ability to buy (if you think the price will rise) or sell (if you think it will fall).
Why trade futures?
Potential for higher profits
You can trade with leverage (for example, 10 times your money)
You can make profits in both bull and bear markets
How to get started:
1. Open an account on Binance and complete the identity verification process.
2. Transfer funds to your futures wallet
3. Choose USDT-M or Coin-M contracts
4. Choose your trading pair (for example, BTC/USDT)
5. Set your leverage wisely (start with a low number: 2x–5x)
6. Use Limit, Market, or Stop orders
7. Always set a stop loss to manage risk
Tips for beginners:
Do not use high leverage as a beginner; trade with small amounts.
Study charts and market trends
Use the demo or test network of Binance for practice
Trading futures contracts involves risks. Only invest what you can afford to lose. Master risk management before entering large investments.
Share this with someone considering trading cryptocurrency contracts.
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