7 Best Cryptocurrency Futures Trading Platforms in 2024 – Crypto News

StormGain Exchange is the best platform for futures trading that assists in managing and trading cryptocurrencies. It provides a user-friendly interface for beginners as well as experienced traders. It also facilitates buying, selling, and exchanging transactions at competitive rates. 

StormGain is also known for its distinctive feature, offering direct Bitcoin mining to put your Bitcoin to use when you’re not actively trading. This is an added avenue for the traders’ crypto holdings’ growth. The platform also comes with timely buy/sell signals that assist traders with informed decision-making and maximized profit potential.

OKX is a crypto futures platform, particularly for traders seeking delivery futures contracts. OKX offers a diverse range of options for future trade pairs. It supports futures on popular cryptocurrencies like Bitcoin, Dogecoin, Ethereum, Solana, Polygon, Aave, and Arbitrum. The platform is also known for providing impressive features, like perpetual futures, options, a decentralized exchange, crypto savings accounts, and crypto loans.

Binance is a giant in the crypto space. It also offers perpetual and futures settled in USDT, BUSD, or any other underlying cryptocurrency. It supports over 600 cryptocurrencies, including Bitcoin, XRP, Dogecoin, BNB, Ethereum, Solana, Cardano, etc. 

Binance is one of the best futures trading platforms for a wide range of traders, both novices and experienced. The platform features significant crypto options, spot trading markets, and advanced tools for trading.

KuCoin is one of the most popular crypto futures platforms. It facilitates derivatives worth over $1.1 billion in volume. It also supports a broad range of futures markets, including linear and inverse contracts, and caters to nearly 25 million users. 

The platform is popular for high-volume futures markets with up to 100x leverage. Additionally, it supports major cryptocurrencies along with meme coins.

Bybit is a preferred choice for traders seeking long-term futures. It provides delivery contracts with a 6-month expiry date for options like Bitcoin and Ethereum; a perpetual trade option is available for other cryptocurrencies like Dogecoin, Ripple, or Cosmos. 

Bybit has a substantial trading volume that exceeds $11 billion. The platform supports crypto futures trading on its website and the mobile app, facilitating flexibility for traders. It also provides integrated TradingView charts and features like automated bots, OTC trading, and copy trading.

BitMEX is a cryptocurrency exchange excelling in the crypto derivatives exchange market. Experienced traders widely use it. The primary strength of this platform lies in crypto derivatives exchange, including perpetuals and futures contracts. BitMEX also has its native token – BMEX. And it’s holders get free discounts and rebates.

Binance is a giant in the crypto space. It also offers perpetual and futures settled in USDT, BUSD, or any other underlying cryptocurrency. It supports over 600 cryptocurrencies, including Bitcoin, XRP, Dogecoin, BNB, Ethereum, Solana, Cardano, etc. 

Binance is one of the best futures trading platforms for a wide range of traders, both novices and experienced. The platform features significant crypto options, spot trading markets, and advanced tools for trading.

Cryptocurrency futures contracts allow trades for a specific crypto’s value at a predetermined time. This helps forge agreements between traders to buy/ sell crypto at fixed prices on future dates. These contracts enable traders to bet on price movements without owning the underlying assets. With leveraging in the future, one may amplify the investment amount and hence the profits and losses. 

Cryptocurrency funding rate is a mechanism that aligns futures prices and spot market prices of underlying assets. This rate can be positive or negative, implying the fees for long positions or compensations for short. The funding rate helps ensure a market equilibrium, which impacts the traders’ profitability. Thus, it is crucial to understand the mechanism and experience effective strategies in the volatile cryptocurrency futures market.

Crypto futures trading introduces traders to leverage, with a potential risk of forced liquidation. It is a phenomenon that may occur in case the margin requirements for a trade remain unmet, and the position’s value starts a downward graph.

Forced liquidation concepts intervene and initiate a trade when the margin balance falls short – to prevent any further losses on the leverage amount from the particular trade. Eventually, in such adverse scenarios, the traders either have to infuse additional funds to stabilize their position or part ways, selling their crypto.

Liquidation reminds traders that margin calls can happen when least expected in the volatile and dynamic crypto market. It emphasizes risk management, strategic planning, and tracking market movements. But, there certainly are some ways to strategically overpower the possibility of liquidation and have a profitable futures trade, like:

• Develop a Trading Plan: Advanced planning of trades helps mitigate the liquidation risks. This involves profit planning while making effective exit strategies for unexpected trade outcomes. This step helps mitigate impulsive decisions influenced by emotions and falling under the greed or fear grid traps.
• Secure your Positions: No matter how many precautions you take, crypto markets are volatile and can move unexpectedly. Thus, to mitigate potential losses while enhancing effectiveness, it is recommended to implement an exit strategy reinforced by stop-loss orders. Stop losses are an effective way to avoid liquidation but require constant vigilance.
• Track the Margin Ratio: The margin ratio is calculated by dividing the maintenance margin by the margin balance. Constantly monitoring it helps effectively avoid liquidation risks. If the margin balance falls below the maintenance margin rate, automatic position closure is triggered. This emphasizes the need for careful monitoring.
• Practice Trading: Several popular platforms allow newbie traders to make demo accounts for practicing crypto futures trading. For example, Binance Futures allows real-time practice without putting capital under actual risk. Additionally, active traders can use Mock Trading to test new strategies and tools and gain valuable experience.
• Risk Management Strategies: To manage risk effectively, limiting the exposure of the trading account balance to 1-2% per trade is essential. Hence, it is recommended to begin with 2x to 5x leverage and avoid large positions initially. This helps develop a crypto futures trading methodology without excessive pressure.
• Avoid Compounding Losses: By increasing positions in a losing trade, the liquidation risk gets even bigger. Instead, one must focus on risk management to cut losses by closing losing positions. This also involves establishing and adhering to a trading plan to avoid impulsive decisions.