Do you know that, as per research, the total transaction value in digital commerce in Myanmar is expected to grow by 11.17% by 2027?
Digital commerce and fintech payments promote the growth of cryptocurrencies, spots and futures, and more. Well, when we talk of futures, the first name that comes to mind is – yes, Binance.
Want to invest in Binance Futures? Not sure where to start? No worries.
This blog delves into the fundamental aspects of Binance Futures, an overview of bitcoin futures, why you must trade on Binance, its pros and cons, and more.
Let’s get started.
Binance Futures is the leading cryptocurrency derivatives trading platform. Back in September 2019, it forayed into the futures segment, which massively fuelled the growth of the Binance platform later.
Binance ensured that users belonging to the spot exchange faced no issues in transitioning to the futures segment. Therefore, it designed the system in such a way that it offers a remarkable user trading experience.
Besides, it supports numerous cryptocurrencies and provides impressive features and tools to navigate, thus making it the best crypto derivatives trading platform.
While Binance futures offers multiple benefits, some of the primary ones are:
- It forms the most liquid platform by a significant margin among other industry players.
- It lets you short your cryptos, hedge your positions, and offers risk-management options to protect your cryptos in bear markets.
- You don’t have to maintain large BTC balances on the Binance exchange due to the leverage.
Did you know that you can leverage up to 125 times on bitcoin futures on this exchange?
Bitcoin futures allow traders to buy or sell bitcoins at a predetermined price on some future date. The buyer’s obligation is to buy the asset when the contract expires, while the seller’s obligation is to offer it.
Bitcoin futures on Binance are traded against USDT and can be collateralized with USDT, BUSD, and other COIN-M variation cryptocurrencies.
In 2020, Binance Futures launched quarterly futures contracts for BTC/USD trading pair and later for ETH/USD pair.
The first step to trading on Binance Futures is to create an account with Binance.
If you don’t have a Binance account yet, you can enter the code ”42315554” in the referral ID field when opening your Binance account and receive a 20% fee discount for spot (max) and a 10% fee discount for futures (max).
You can simply click the button below to open your Binance account with a 20% fee discount:
Next, you must go through the identity verification process as a part of Binance’s KYC requirements.
A simple set of steps include:
- Create a trading account on Futures. You must enable 2FA verification to fund your futures before starting to trade.
- Transfer or deposit funds to your futures wallet in currencies like USDT, BUSD, or other cryptos supported by Binance.
- Select between one of the below options – USD-s-M and Coin-M futures.
USD Denominated (USD-S)
These are future contracts settled in stablecoins. This implies you would reap profits or incur losses in stablecoins.
The future contracts, in this case, are settled in cryptocurrency. This means you reap your profits or incur losses in cryptos.
- Select the right amount of leverage for the position
- Start by placing buy-limit, buy-market, or other kinds of orders on the Futures
What Are The Cryptocurrencies Supported On Futures?
It offers a wide variety of trading pairs, some of which are:
- Ethereum (ETH)/USDT
- Ripple (XRP)/USDT
- Bitcoin Cash (BCH)/USDT
- Binance Coin (BNB)/USDT
- Stellar (XLM)/USDT
- Cardano (ADA)/USDT
- Tron (TRN)/USDT
- ApeCoin (APE)/USDT
- Polkadot (DOT)/USDT
More pairs are being added to Binance futures constantly.
What Are Futures Trading Fees?
A key point to consider when choosing an exchange is the trading fee. This is particularly relevant for day trading as the fee goes on piling up quickly.
While you can find all the details on trading fees on the Binance official website, a default user carries a 0.02% maker fee and 0.04% taker fee. However, to enjoy a low fee on Binance requires you to have a native Binance Coin (BNB) and a good amount of Bitcoin turnover volume.
Well, Futures trading certainly offers many advantages and also a few limitations.
- Highly user-friendly platform, supporting tutorials and other tools to help you get acquainted with the platform.
- It provides a demo account to get familiarized with the Binance platform.
- It supports withdrawals and deposits of crypto and fiat currencies through the platform.
- It offers strong security to protect investors’ assets.
- Customer-oriented support team, extensive tutorials, and 24×7 support and assistance.
- Provides an additional layer of protection to the platform users through its KYC verification.
- Compatible on Google play store, Android, and App store
- Traders who want to maintain anonymity may not prefer the KYC process.
- You can trade only by depositing USDT.
- It relies more on the Tether (USDT) stablecoin.
By the way, did you know Binance added Myanmar Kyat to its P2P trading? Well, you must have gotten a fair idea of Binance Futures through this read.