#CEXvsDEX101 Futures trading can offer prosperous opportunities due to high profitability but also comes with significant risks. Below is a brief analysis: Prosperous Opportunities High profits thanks to leverage: Futures allow the use of leverage, for example, x10, x50, or even x125, which helps amplify profits from a small capital. If you correctly predict the price trend (up - Long or down - Short), you can earn substantial profits. High liquidity: Major exchanges like Binance have high futures trading volumes, making it easy to buy/sell and exit positions without significant slippage. Price risk protection: Futures allow investors to lock in asset prices, minimizing the risk of price fluctuations, especially useful for long-term investors or businesses. Flexibility: You can profit in both bull and bear markets through Long or Short positions. Risks Leverage risk: High leverage increases the risk of losses. If the market goes against your prediction, you could lose your entire initial capital, or even face account liquidation (account wipeout). High price volatility: Asset prices in futures (especially cryptocurrencies) can change rapidly, leading to significant losses in a short time. Knowledge and skill requirements: Futures trading requires in-depth understanding of the market, technical analysis, and risk management. Beginners are prone to making mistakes if lacking experience. Fees and liquidation: If the account does not have sufficient margin, exchanges like Binance may automatically liquidate the position, along with a penalty fee (0.5% of the transaction value).