An overview of Futures contracts in bitcoin.
Futures contracts are often praised to avoid risks. They are more like easy way to gamble with the underlying asset. In cryptocurrencies world's first two futures contracts were introduced by Chicago board options exchange (CBOE) in early December 2017 the second one was after few weeksby Chicago mercantile exchange (CME).
Futures contracts basically is a CFD stands for contract for difference in which an investor can trade the contract for underlying asset without actually buying it. After these 2 Famous security exchanges listed Bitcoin CFDs on their exchange. The Bitcoin price went upafter that. Now Bitcoin holders have a way to Hedge there exposure at last. Trading a futures contract of Bitcoin an investor can also make money by selling it short as well. In simple way if the price of Bitcoin is going down you can still can make moey. Futures contracts provided and easy way for people to get in to Crypto Mania. Both contacts can be purchase or sold in cash for example the difference between the agreed price and actual spot price (bid and ask). In order to trade futures contract no need to buy actual Bitcoin.
The contract has a significant premium which should be paid to buy the contract starting from $2,000 to the spot price the current price of the Bitcoin at the time of purchase of the contract. If the price moves up and you sell your contact the, than the difference of the price at the time of purchase upon time of selling is your profit.
CFDs makes it easy and provide much saffer way to get a taste of Bitcoin Hustle. Because it has been observed that, in recent days many Bitcoin exchanges faced system failure (downtime). And hackers also stole , more than 60 million dollars worth Bitcoin from rusian exchange. By Keeping in mind those risks getting in through futures contract seems much easier.
Congratulations @abrahamedetesio! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOP