What Is Crypto Futures Trading?

People who are not familiar with the idea of People crypto futures trading can never understand its significance. But the ones who are regularly investing in crypto know how important it has become in this digital era.

If you are intrigued with the idea, you have reached the right place with a clear description.

The vast crypto world comprises several things. Every crypto enthusiast must know about crypto futures trading. We are covering the basics of bitcoin futures trading, and how it works.

What Are Cryptocurrency Futures?

Cryptocurrency trading sounds great, but without understanding the basics, it is difficult to succeed. One important concept to learn about is cryptocurrency futures. Some of you may have heard about it, but don’t know what it is.

To understand simply then cryptocurrency futures are nothing, but contracts shared between two individual investors who bet on the future value of a cryptocurrency. This allows betting on cryptocurrencies without buying them.

As a cryptocurrency enthusiast, you should know about the first bitcoin futures that were listed on Cboe in December 2017. However, it didn’t last long and was discontinued soon.

How Crypto Futures Trading Works?

Before stepping into the world of cryptocurrency futures trading, you should make yourself familiar with the way it works. This is a necessary thing, especially for those who are new in this realm.

For starters, crypto futures tradingconsists of three primary components, which includes:

Units Per Contract

Every contract has a different value and it varies from one platform to another. Like one CME bitcoin futures is worth 5 bitcoins, but on Deribit, the value for one bitcoin futures is $10.

Expiration Date

Every bitcoin trading futures contract has an expiry date, which indicates the date when the contract should be settled. By settlement we mean, one party selling and one party buying the contract at an agreed price. However, traders do have the choice to sell their contracts to any other investor they want. It’s completely their wish who they want to sell their crypto futures contracts.


Traders bet on their futures to boost the potential gains and borrow capital from exchanges to increase their trading size. Once again, the trading rates are different for every crypto trading platform. It is advisable for traders to once check the trading rate before getting started.

There are two unique ways through which futures contracts are settled and these include:


This type of settlement happens over a cash transfer between the seller and buyer.

Physical Delivery

In this case, the buyer receives BTCC after purchasing it.

Crypto Futures Value & Pricing

Crypto futures contracts track the value of underlying assets, but sometimes the price changes during the maturation period. This happens because of volatility fluctuations, which are caused by a primary catalyst.

Demand and supply-related problems shrink or widen the spreads in one or multiple sets of futures contracts.

Crypto futures contracts are an interesting aspect of the crypto world. Crypto traders need to learn the basics of crypto futures contracts before getting started.

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