Recently Bitcoin’s price hit a new record high of $19K, people around me are all talking about how to invest in Bitcoin. The question that newbies often ask was “do I need to buy 1 BTC at least”? No, you don’t have to buy a whole one. In spot trading, investing $100 can get you 0.005 BTC, but futures trading allows you to leverage your investment for bigger gains.
If you don’t want to invest a lot of money in bitcoin trading, you can try Bitcoin futures. Bitcoin futures allow you to maximize your return using a small amount of margin. You have a chance to lose all of your margin, but you also have a chance to make 100 ~150 times of profit. It’s risky, but attractive. Traders can benefit from Bitcoin’s price change without holding any actual Bitcoin. I just made 10 times returns at BTCC by trading bitcoin futures.
Different Types of Bitcoin Futures
There are different types of Bitcoin futures. Take BTCC as an example, the exchange provides daily contract, weekly contract, and perpetual contract.
|Daily Contract||Weekly Contract||Perpetual Contract|
|Expiration time||05:00~07:00(UTC+8) everyday||05:00~07:00(UTC+8) every Sunday||none|
|Features||No rollover fees||No rollover fees||No expiration time|
The table above shows features of various Bitcoin futures offered at BTCC. How to choose the most suitable types of futures? If you want to hold for a long period of time without an expiry date, then a perpetual contract is perfect for you. It will charge you a funding rate every 24 hours. If you are looking for higher leverage, pick the daily contract. BTCC’s daily contract offers a maximum of 150x leverage. If you are looking for a more cost-effective option, then a weekly contract is the right choice for you, because you can hold it for a week without any funding rate.
My Experience With Weekly Contract at BTCC
On November 16 and 17, the price of BTC surged rapidly. I made my first deposit at BTCC. If my first deposit exceeds 500 USDT, I can earn an extra deposit bonus. Since It’s the first time I try with Bitcoin futures, I only deposit $100 USDT, and I regret I didn’t deposit more.
After taking both the leverage and funding rate into account, I choose to try the BTC weekly contract with 100x leverage. I opened a 0.3 lot of BTC/USDT long position when the BTC price was 16,512 USDT. The position only occupies 45 USDT of my margin, and I still have 55 USDT free to use. If you are an aggressive trader, you can open another position. But considering the volatility of Bitcoin itself, 100 times leverage itself is easy to liquidate, I did not use the remaining margin to open more orders.
I believe BTC will break $20K at some point in the future, but there is a lot of resistance at the price of $18K. I decided to close my position on Wednesday when the price is 17,889 USDT.
It is worth noting that at BTCC, you are trading BTC/USDT pairs instead of BTC/USD. In less than 2 days, my 100 USDT investment turned into 509.88 USDT profit. That’s so exciting! Now I have enough money to open a position worth of 2 BTC.
I opened a long position worth 2 BTC when the Bitcoin price broke 17,820 USDT and closed at 18,122 USDT on the same day on November 20. I earned around 600 USDT in my 2nd position. Now my account balance has become 1093.13 USDT.
Tips on Bitcoin Futures Trading
Compared with spot trading, bitcoin futures trading is more sensitive to the prices, so you should always follow the price. I added a BTCC widget on my iphone’s home page and set price alarms.
With BTCC widget, you don’t have to check in and open the trading app all day. Every time I use my iphone, I can see the prices pop up on the home screen. Another feature of BTCC widget is you can set an alarm when the price rises or falls to a certain level.
This is how I turned 100 USDT into 1,000 USDT in just one week: keen judgment on the market, good use of leverage, BTCC App with widget and alarm, and a little luck.
Go for a free account on BTCC and try your first bitcoin futures trading today!
BTCC is a 9-year-old crypto exchange and now provides bitcoin futures trading and the total trading reached 98 billion USDT contracts in the last 30 days. In addition to the English market, BTCC is now available in Korean (비트코인 선물), Japanese (ビットコイン先物取引), and Vietnamese (Hợp đồng tương lai Bitcoin).
Disclaimer: This article is just a sharing of experience and does not constitute investment advice. Bitcoin Futures are complex instruments and carry a high risk of losing money quickly due to leverage. You should consider whether you understand how the bitcoin future works and whether you can afford to take the high risk of losing your money.