As the cryptocurrency market matures, an increasing number of smart traditional investors are joining the party. In order to make them feel welcome and familiar with the environment from day one, offering futures trading is quintessential. Therefore, it’s safe to say that the increase in popularity of this approach to trading is a strong indicator that we’re moving past the phase of clueless speculation.
Futures are all about having a plan, doing a lot of research, and establishing when to buy and for which price. They are basically an agreement between parties where they accept to do the trade at a fixed date, and at a mutually convenient price point. Unlike spot trading, you don’t just buy when you think the time is right; you replace speculation with a well-thought-out plan.
In a nutshell, futures are less exposed to market volatility and also allow bears to bet against the cryptocurrency market (in most cases, it’s only about the performance of Bitcoin). And if we want to onboard smart traders from traditional finance, then we need to provide them with the means they like and to which they are accustomed. Institutions love futures trading because it’s predictable and allows for a proper long-term strategy.
According to data provided by CFTC (US Commodity and Futures Trading Commission), these traditional investors are really bullish on Bitcoin, and there is a significant surge to justify a feeling of optimism. Also, BTC futures keep on reaching new highs in volume at the CME (Chicago Mercantile Exchange): in just one year, we have seen a 250% increase. Major mainstream media outlets such as US News have reported on the issue as well, and the growth in interest has been exponential.
Trading Bitcoin Futures 2.0 on BTSE
At BTSE, we aim to build a bridge between the hundred-trillion-dollar global futures market and cryptocurrency futures. In order to do this, we’ve studied the existing crypto futures market and made sure to deliver an efficient user experience that is built on a reliable platform (with little to no downtime and overload).
BTSE allows users who don’t own cryptocurrencies to become part of the trading game, thanks to the multiple fiat pairs we provide.
BTSE’s Futures 2.0 are all about combining the liquidity of several assets and markets with the proper utilization of capital and assets. Ultimately, all users should be able to find the proper pair and strategy for optimal returns on investment (ROI). We believe that these features are beneficial for the entire cryptocurrency market as this feature is especially attractive to traditional investors, allowing them to take advantage of the price volatility in a way they like and understand.
Furthermore, BTSE is the first cryptocurrency exchange to offer a crypto index future, which takes inspiration from the financial index future. Investors don’t have to worry about the performance of each individual asset and may regard the cryptocurrency market as a whole with all of its swings – so there will be gains during both “Bitcoin bull runs” and “alt seasons”.
Our aim is to create a platform that offers users the most enjoyable trading experience. If you have any feedback, please reach out to us at firstname.lastname@example.org or on Twitter @BTSE_Official.
Note: BTSE Blog contents are intended solely to provide varying insights and perspectives. Unless otherwise noted, they do not represent the views of BTSE and should in no way be treated as investment advice. Markets are volatile, and trading brings rewards and risks. Trade with caution.