What Is Futures Trading In Crypto? P2
Crypto futures track the prices of cryptocurrencies, like Bitcoin, Ether, Solana, and XRP. Investors and traders use these contracts to speculate on future price movements of these coins while offering an efficient way to hedge in the crypto space.
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🕒 8:25 PM
📅 Sep 07, 2025
✍️ By kihole
With so many types of asset classes and markets available to trade, it can be difficult for a new trader to settle on the right choice to best fit their trading style and aspirations. It can also be challenging for active traders to select the right markets to help diversify their current portfolio.
The following are some but not limited to the benefits of futures Trading in cryptocurrency.
1. For futures traders, entering a short position is seamless and every future can be shorted.
2. Traders at all levels, from beginners to pros, can easily participate in the futures markets due to the choice of contract sizes to trade.
3. The leverage available through futures allows you to control a larger trading position with less capital
4. Futures markets are open nearly 24 hours a day, six days a week. While some other asset classes may offer similar trading hours, futures are recognized for usually having higher levels of liquidity throughout trading hours due to their global market participation.
5. Futures trading and exchanges are highly regulated by the Commodities Futures Trading Commission (CFTC) and serve an important price hedging role for all types of industries.
6. Under Internal Revenue Code Section 1256, futures trading gains are split between long-term capital gains and short-term gains. This is a tax advantage for futures traders over short-term stock trading.