MODULE 3 - Dan Pentagram
📚 Advanced Cryptocurrency Course: Lesson 1 - Trading with Crypto Derivatives and Futures 📈
📈Trading derivatives and futures is an advanced way of operating in the crypto market, offering opportunities for significant profits, but also with much greater risk.
What Are Derivatives and Futures?
📜 Futures and derivatives are financial contracts whose value is derived from an underlying asset, in this case, a cryptocurrency like Bitcoin or Ethereum.
🚀Futures Contracts: These are agreements to buy or sell a cryptocurrency at a specific price on a future date. They allow you to speculate on the price of the asset without owning it directly.
🚀Long vs. Short Position: When trading futures, you can take a "long" position (betting that the price will go up) or a "short" position (betting that the price will go down).
Understanding Leverage
🤯Leverage is one of the main features of futures trading. It allows you to trade with more capital than you have in your account. For example, with 10x leverage, you can control a $1,000 position with only $100 of your own money.
⚠️ Warning: Leverage is a double-edged sword. While it can multiply your gains, it can also multiply your losses, potentially liquidating your entire initial investment in a matter of seconds. This type of trading is not for beginners and requires very strict risk management.
In advanced trading, education and discipline are your greatest allies. It is vital that you start with small amounts and fully understand the risks before trading.
— Dan Pentagram
