Trading Bitcoin Vs. BTC Futures – Which One Is Best for You

Expert traders have been using 如何買比特幣 futures for years,Trading Bitcoin Vs. BTC Futures - Which One Is Best for You Articles but small investors or retailers are yet missing out on the opportunities due to incomplete or incorrect understanding of the instrument.

With the rise in the number of crypto trading exchanges like PCEX Member, Binance, FTX, Bitfinex, Bybit, and Kraken offering BTC futures trading, the comparison Trading Bitcoin Vs. BTC Futures is most likely to surface in the mind of investors like you.PCEX Member a cryptocurrency exchange in India explains both spot and futures instruments, and their pros and cons along with tips to maximize the ROI with either of the options. Our objective is to help you find the answer – which one is the best investment option – yourself.Understanding the Difference: Spot Vs Futures TradingIn spot trading, there is a real-time settlement between the buyer and seller of the BTC asset. The requirements of buyer and seller go into the Order Book as Bid Price and Ask Price respectively and matchmaking or orders take place. Once the trading is over, the buyer gets the cryptocurrency in the definite lot size, while the seller receives fiat or stable coin (or other assets, sometimes NFTs).In the BTC futures, the trade is based on opposite speculations made by the buyer and seller on the BTC futures price at a pre-defined point of time in the future. They deposit the margin amount with the exchange. The price of futures tracks the price of an underlying asset. No one initially gains or losses anything from it at the time of the contract. They wait for the contract to expire or go for a settlement by terminating in advance. Their profit or loss is estimated on the spot price on the crypto asset on that particular expiration or termination date. The differential of the price is credited to the account of the buyer or seller.To make speculations in the right direction, you must have a sound understanding of the complex factors like expiration, liquidity, volatility, and any relevant news.

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