This crypto trading guide will discuss where to trade Bitcoin futures and what Bitcoin futures are.
Bitcoin futures are very popular among cryptocurrency traders because they allow large leverage trading. Leverage trading comes with huge potential but also a lot of risks.
Many of the top Bitcoin trading sites offer futures trading, but we will only list the very best in this article.
Trade Crypto Futures with no KYC
In the table below, you can find the non-KYC withdrawal limits for some of the top cryptocurrency trading sites.
What are Bitcoin futures?
Bitcoin futures allow investors to speculate on the future price of Bitcoin. Investors can get exposure to Bitcoin, or any cryptocurrency, without having to own the underlying asset. Important is that Bitcoin futures are a derivative of the underlying asset, in this case Bitcoin. A crypto derivative is not trading at the same price as the spot market.
A Bitcoin futures contract is an agreement to buy, or sell, Bitcoin BTC at a specific price at a specific date in the future. You can speculate in both bull markets and bear markets with the Bitcoin and crypto futures trading instruments.
- By going long on Bitcoin futures, you commit to buying Bitcoin at a specific price, at a certain date, in the future.
- By going short on Bitcoin futures, you commit to selling Bitcoin at a specific price at a certain date.
Crypto Futures VS Crypto Spot Trading
Futures contracts and spot trading are two utterly different trading products.
The most significant difference between the two is that you own the underlying asset when you do spot trading. So, for example, if you buy Bitcoin for your USD, you own those Bitcoin.
However, the futures contract is a derivative financial agreement that obligates the parties to transact an asset at a predetermined future date and price.
Read more about the lowest crypto spot trading fees.
Crypto Futures Trading Fees
It’s essential to compare the crypto futures trading fees when trading these instruments since it will significantly impact your long-term net result. The crypto futures and Bitcoin futures trading fees vary considerably between trading sites but also within a trading site, depending on
- Your average trading volume for the last 30 days
- Your holding in the native token (True for Binance and Kucoin)
- Your referral code (True for Kucoin, Binance, OKX, and MEXC Global)
Kucoin Crypto Futures Trading for USA
Kucoin is a great crypto trading platform for Bitcoin and altcoin futures. Kucoin offers among the lowest trading fees on the market and a plentiful futures supply and trading volume. Also, you can easily lower your Kucoin crypto derivative trading fees by holding the Kucoin token KCS and using our referral link.
In addition, Kucoin allows traders from the USA to trade crypto futures on their platform.
Kucoin is also a good crypto exchange to find your next crypto gem on or for trading spot markets.
Kucoin Referral Code: -20% on all commissions with our link
Bitget Crypto and Bitcoin Futures for the USA
Bitget is a crypto derivative and futures crypto exchange based in Singapore. Bitget has regulatory licenses from the US, Canada, and Australia.
The exchange offers perpetual trading with a great signup offer and very good crypto trading competitions with great price pools.
In addition, Bitget offers one of the best crypto copy trading platforms among all crypto exchanges on the market.
Bitget has a flat trading fee schedule where you can get lowered trading fees by paying them with the native Bitget token BGB.
Read more about the Bitget crypto exchange in our Bitget review.
Crypto Futures VS Crypto Perpetuals
Crypto futures and crypto perpetual contracts have one important thing in common and one essential property that separates them
- Both crypto futures and perpetual are crypto derivatives speculating the underlying asset in the future
- Futures expires and settles on a certain date in the future while perpetuals are like open futures with no ending date
Crypto Futures Trading Terms
- Cash Settlement – This is a settlement method used in futures. Upon expiration date, the seller of the financial instrument does not deliver the actual (physical) underlying asset but instead transfers the associated cash position.
- Collateral (Initial margin) – The collateral is the cash deposited in the account or securities provided and represents the funds available to the account holder for further trading. Example: If you buy Bitcoin futures with $1.000 and 3x leverage, your position is worth $3.000, but your collateral is $1.000. If Bitcoin decreases 10% in price and your position is worth $2.700, your collateral is $700.
- Margin call – A margin call occurs when the value of an investor’s margin account falls below the required amount. The required amount is different for different trading sites, but you will be asked to deposit more funds.
- Force liquidation – Force liquidation happens when your margin is below a certain level. This level is lower than the level for a margin call.
- Settlement currency – The cash settlement will be transferred in the settlement currency.