This crypto trading guide will discuss where to trade crypto futures if you are from the USA or a US citizen.
There are two options.
- Signup with one of the few US-regulated crypto exchanges and trade futures and derivatives (BTCC, Kraken, BYDFi)
- Use an exchange with no KYC requirements (Additional precautions might need to be taken like VPN etc)
We can’t recommend number 2, but we must provide accurate information. There might be risks involved in using a VPN to sign up with certain exchanges we are unaware of.
Trade Crypto Futures from the USA
Only BTCC, BYDFi, Kraken and NEXO can offer futures and derivatives on the US markets.
BTCC has the most trading volume and markets. In addition, they have the best crypto signup deposit bonus.
- Trading
- Bonus
- SignUp
Crypto Exchange with non-KYC withdrawal limits
The table below shows the non-KYC withdrawal limits for some of the top cryptocurrency trading sites.
- Trading
- KYC
- SignUp
- DEXes
- KYC
- SignUp
What are Bitcoin futures?
Bitcoin futures are a category of crypto trading instruments.
Bitcoin futures allow investors to speculate on the future price of Bitcoin. Investors can get exposure to Bitcoin or any cryptocurrency without owning 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 particular date. With the Bitcoin and crypto futures trading instruments, you can speculate in both bull markets and bear markets.
- 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, 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 is owning the underlying asset when 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.
BTCC Crypto Futures Trading for USA
BTCC launched in 2011 and is one of the oldest crypto derivative exchanges. BTCC only has perpetual and future markets with no spot market.
There are no KYC requirements for crypto deposits and withdrawals.
- Perpetual markets: 53
- Futures markets: 2
- Derivative trading volume: 4th place on Coingecko.
BYDFi Crypto and Bitcoin Futures for the USA
- Perpetual markets: 165
- Futures markets: 0
- Derivative trading volume: Not on coingecko.
Kraken Crypto and Bitcoin Futures for the USA
- Perpetual markets: 110
- Futures markets: 30
- Derivative trading volume: 25th place on Coingecko.
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 trading. 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 differs 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.
