Now that leveraged margin trading is no longer possible across Chinese exchanges, bitcoin users have to look for some alternative solutions. Futures trading is becoming quite popular, as it allows traders to speculate how the bitcoin price will evolve moving forward. Quite a few platforms offer this type of trading, and most platforms even use leveraged trading as well.
Albeit Deribit is one of the lesser known exchanges, the platform has proven to be quite popular among bitcoin futures traders. Deribit provides leverage of up to 25x, which is still somewhat cautious compared to other platforms. Deribit provides users with weekly and quarterly futures for bitcoin. All futures contracts will be determined based on social loss.
Although it is rather unusual to see an American exchange provide bitcoin futures trading, Coinpit is the only supporting it as of right now. The company provides 100x leverage as well, which means users can go full “degen” as the traders like to say. Contracts run on a weekly or bi-weekly basis, with settlements occurring every single day. Contracts will only be terminated once the user closes it, which can lead to significant losses or gains, depending on trading strategy.
London-based Cryptofacilities is often overlooked when it comes to bitcoin futures trading, even though the platform provides a nice feature. With leverage of up to 50x, there are plenty of opportunities to take calculated risks. Contracts run anywhere from 1-4 weeks out, quarterly, semiannually, or three-quarters. There are no socialized losses on this platform and contracts can be terminated if they remain unfulfilled for an extended period of time. All things considered, definitely a platform worth checking out.
When it comes to bitcoin futures trading, there are only two platforms most people will rely on. One of those companies is OKCoin, mostly known because of their bitcoin exchange and wallet service. However, a lot of traders use OKCoin for 20x leveraged bitcoin futures trading on a weekly, bi-weekly, or quarterly basis. One thing that makes the platform stand out from all other companies is how users can go long and short at the same time on the same contract.
In doing so, traders ensure they can handle any type of price change that will occur at any given time. Considering bitcoin can be somewhat volatile at times, there will be brief dips and peaks, and OKCoin allows traders to take advantage of all of these changes whenever they want to. An interesting take on things, although it remains to be seen if the PBoC will take a stance against bitcoin futures trading in the future.
It is impossible to discuss platforms providing bitcoin futures trading without referring to BitMEX, as they are seemingly the market leader. With 100x leverage and perpetual swap and quarterly futures contracts, BitMEX offers something for everyone. The company is also based in the Seychelles, which will keep them relatively safe from regulatory oversight for the time being. The platform uses auto deleveraging to close futures contracts, although users can always close their contract manually as well.
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