Crypto Futures: Questions to Ask

January 30, 2022
With Bitcoin and Ethereum growing in popularity in mainstream media, new people want to look at exchanges and investments. Some people are comfortable completing spot trading, but others want to look at market movements and capitalise on them. Those that can understand the market trends can take part in futures trading.

What Is Crypto Future Trading?

Unlike those who participate in spot trading, crypto futures trading is a bit different. Some traders use software like the bitql app to fulfill their trading needs. Future trading means that you do not hold the crypto-assets themselves, but you have future contracts instead that represent the cryptocurrency’s value at a specific date.

There is no need for a cryptocurrency trading platform or wallet but some still opt to have one. The reason for this is that futures contracts are either settled on the actual delivery date or are brought before the delivery date arrives. If the person who holds the contract sees a profit on the delivery date, they can also cash in the difference.

Why Do People Invest in Crypto Futures?

Having cryptocurrency futures gives investors confidence because all futures trading is done through the Commodity Futures Trading Commission. Also, there is no need for a Bitcoin wallet because no Bitcoin is being traded. Another reason investing in futures contracts has become popular is because it helps keep portfolios safe. They work as a hedge when investments are traded in the wrong way.

Questions to Ask Yourself

1. Why Are You Getting into This?

Do not just get into futures trading because everyone is talking about it on social media. Make sure to ask yourself the real reason why you are getting into futures trading. Ask yourself if you are just curious and want to see how it goes or if you want to protect your Bitcoin with a hedge.

2. Have You Done Your Research?

Take time out and learn about futures and cryptocurrency in general. You should be reading about which futures and crypto you want to invest in, watch multiple videos on them, but do not just rely on one source to begin trading. When you do your research, you can distinguish which crypto, futures, and wallet are best for you.

3. Are You Able to Buy Crypto?

After figuring out why you want to trade crypto or futures, think about if you can afford it. One of the most significant risks with crypto is that many people do not know if there will be economic gain with crypto. This is because blockchain technology is relatively new, and traders and investors continuously learn about it. Also, the market is highly volatile, so if you cannot lose money, then maybe you should reconsider if crypto is right for you.

4. How Responsible Are You?

Do not trade when you are emotional, compulsive, or want to gamble. When people begin to trade irrationally, then that is when they are more likely to see everything disappear. Include minimising leverage use, as well as trade capacity. Look at realistic goals that you can reach and do not invest more money than you can afford to lose.

5. Are You Going to Diversify?

Like with any good investment portfolio, it is crucial to diversify. Do not just put all your eggs in one basket. Take time to learn about the other cryptocurrencies available and see which ones you might also want to invest in. By doing this, you can protect your money.


Making a sound investment into cryptocurrency futures is a great way to build a hedge for your portfolio. Cryptocurrency is already highly safe and protected, but adding a little more protection is always for the best. Once you ask yourself these five questions, you are more prepared to start your journey with cryptocurrency futures investments.


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