🔹 Introduction
After learning about spot trading and Staking, you must hear about one of the most dangerous and exciting fields in the crypto world: Futures contracts.
Trading in futures can make you earn multiples in a very short time, but at the same time, it can liquidate your account in an instant if you're not careful.
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🔹 What is Futures Trading?
In Spot trading, you buy the currency and actually own it, whereas in Futures, you are trading a 'contract' that represents this currency, not the currency itself.
You can open a Long position if you expect the price to go up.
Or Short if you expect the price to drop.
This gives you a chance to profit even if the market is falling.
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🔹 Leverage
The biggest advantage of futures contracts is leverage.
For example: If you have 100 USDT, and with 20x leverage → you can open a position worth 2000 USDT!
But 👀 be careful:
Any small movement against you can completely liquidate your position.
Leverage is a dangerous weapon, you must use it with caution.
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🔹 Advantages of Futures Trading
⚡ Huge profits in a short time.
⬆️⬇️ Profit in all directions (up and down).
💹 Diversify your strategies between Spot and Futures.
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🔹 Risks and Drawbacks
❌ Liquidation: If the market reverses against you.
❌ Requires real-time monitoring and continuous technical analysis.
❌ Very high risk, not suitable for beginners.
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🔹 Smart Strategies for Futures
1. Start with a small capital → learn first before increasing the size.
2. Use low leverage (2x - 5x) instead of large numbers.
3. Always set Stop Loss orders.
4. Study the overall trend before entering.
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🔹 Summary
Trading in futures is very tempting because it quickly multiplies your profits, but at the same time, it is the riskiest trading tool in crypto.
If you intend to enter it, you must understand risk management and consider it a small part of your strategy, not the foundation.
💡 Golden advice: Leverage is not a game, use it to stay longer in the market, not to win once and exit.