What are Bitcoin Futures?
Bitcoin futures are based on the Bitcoin digital cryptocurrency. They allow you to trade your view on the price and future performance of this volatile market through a regulated exchange.
Bitcoin offers several unique benefits including a decentralized approach to finance, which means Bitcoin is not controlled by any single entity or government, allowing individuals to transfer Bitcoin without any intermediaries. Bitcoin can also offer financial stability in areas of the world where governments and banking systems are unstable.
Capped at 21 million coins, Bitcoin is similar to precious metals in that there is a limited supply. In theory, this scarcity should allow Bitcoin to hold its value and resist devaluation over time.
Why Trade Bitcoin Futures?
Bitcoin futures offer cryptocurrency enthusiasts a more direct way to participate in the price movement of Bitcoin by trading through a well-regulated broker like NinjaTrader. For those individuals holding actual Bitcoin, Bitcoin futures contracts can serve as a hedge in anticipation of lower Bitcoin prices. Read more about the advantages of trading Bitcoin futures over holding actual Bitcoin.