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The Bitcoin Futures Market How Does It Work

While many cryptocurrency assets have some real use cases and are used by thousands of people to pay for products and services, most people in the bitcoin exchange are investors. They purchase a cryptocurrency and hope that the value will increase while they hold the asset, so they can sell it to receive a profit at some point.

You need to understand the working of the Bitcoin roulette for the playing of the games. There is a lot of profit available to the people with the playing of the games. The prediction of the future market is possible for the traders with the choosing of the bitcoin trading card games. 

Investing in crypto is generally quite simple as there are several high-quality exchanges and platforms that allow you to sell and buy crypto in seconds. Signing up for these platforms is easy and straightforward, as is using most of their features and services.

However, there are other ways of investing in cryptocurrency like Bitcoin. For example, investing in the Bitcoin futures market is quickly gaining steam that’s becoming more and more popular. But what exactly are these investments, and how do they work? Well, if that’s a question you have in mind, you’re in luck. This article is going to look closely at not only what Bitcoin futures are and how they work, but which are their benefits and where they can be bought and sold.

What are Bitcoin Futures?

To make clear what Bitcoin futures are, we are going to divide the explanation into several steps. The first step is to understand the definition of what is a futures contract. So, it is an agreement to buy or sell an asset. At the agreed time, involved parties perform their obligations. Means, a seller sells the asset that is declared in the contract and the buyer buys it. The price of buying/selling is equal to the one, mentioned in the contract.

These can be done in the commodities market, stocks, precious metals, and many other industries. Futures are often used by traders to speculate on where the price of a specific asset will go. They can also be used to hedge risk and protect yourself as an investor. As you can imagine, a Bitcoin future is simply a futures contract that takes place in the Bitcoin market instead of the stock market, crude oil or metals market.

In a Bitcoin futures contract or any future contracts for that matter are between a party with a short position and one with a long position. The party with the short position is agreeing to sell the asset at a certain price at a certain time, while the party with a long position has agreed to buy it. Each side makes the deal in hopes that the market price will end up going in their favor.

So if you ever hear someone taking a “short” or “long” position , that essentially means that they are getting involved in a futures contract of some kind. Since 2017, people have been able to use Bitcoin futures to speculate on the future price of Bitcoin.

Risks and Benefits of Bitcoin Futures

Speculating on the future prices of Bitcoin can lead to incredible profits if the market dips or rises in your favor. These futures allow you to become involved in this speculation without actually having to hold any Bitcoin at the time, as long as you can fulfill your long or short position when the time comes.

The availability of futures provides Bitcoin traders with far more instruments to invest how they want, from short selling to leveraged trading. Also, most part of the Bitcoin futures market is regulated, which ensures everything is done fairly as everyone needs to abide by the very same set of rules. This regulation can also attract more professional investors, which will only help Bitcoin to get more liquidity. The availability of Bitcoin futures contracts also offers price transparency as these contracts are settled daily, and a transparent reference price is used in all of these contracts.

Of course, these futures contracts also come with a ton of risk. For example, if you try to short Bitcoin by borrowing it, and the prices rise, you will not only lose your initial investment but potentially much more. Also, some Bitcoin futures contracts can be difficult for the everyday investor to participate in as the requirements can often be quite high.

Also, whenever dealing with futures, there is always the risk of the prices’ manipulation. Huge investors can place massive sell orders on the asset that can lead to a bearish market, where other sellers are forced to sell before the price dips too low. All of these risks should be weighed against the potential benefits before you invest.

Where Can Bitcoin Trades be Done?

Bitcoin futures became available to invest in back in 2017 when the CBOE Futures Exchange first introduced them. Another regulated exchange, CME, launched support for trading Bitcoin futures soon after. More and more exchanges have now joined the market and have begun offering support for those types of investments as well. Don’t be shocked to see more and more regulated exchanges supporting Bitcoin futures.

Another option is to invest in your Bitcoin futures on a cryptocurrency exchange. While not every exchange offers this support, many do. BitMEX, OkeX, OKCoin, and others allow you to invest in Bitcoin futures right on the platform.

Of course, be sure to do your research on which exchange or platform makes the most sense for you. They might have different fees, offer different options and have additional rules. Do some studying to find out which is the best choice for your wants and needs.

In conclusion, we hope that this article has been able to help you learn a little more about Bitcoin futures, their pros and cons and how they work. Of course, before investing in crypto futures, or any cryptocurrency for that matter, be sure to do your own independent research on what makes the most sense for you. The market is volatile and futures can be even riskier, so be sure it is something you want to do.

Adventurer To Make First Ever Bitcoin Deal From The South Pole

In a proposal to prove that bitcoin funds can not be frozen, Frenchman Faysal Hanneche might quickly be the first individual to make a digital currency buy from the South Pole.

Danish bitcoin broker Sirius Cash is leading the proposal to sponsor Hanneche EUR 2,000 to carry a bitcoin sticker on his sledge all the method to the Amundsen-Scott base station in Antarctica, and make the first ever bitcoin buy from the south pole, buying a pizza online via satellite connection simply prior to his arrival back in Chile.

Thorkil Værge, head of Sirius Cash, has actually pledged EUR 1,000 (6.8 BTC) to Hanneche, who is carrying out the difficulty to take a trip alone to both poles in a single year. He also says if Hanneche manages to raise more than 15 BTC, he will hold a bitcoin flag with him, if one can be made prior to his departure from South Africa on November 5th.

If he is effective in his quote to raise sufficient bitcoins, he will certainly draw attention to bitcoin’s status as the world’s first really borderless global currency, making a historical transaction in the process.

Hanneche’s huge round trip of 3500 km to the South Pole is the second leg of his trip; he dominated the North Pole in April this year, pulling 120kg of provides across hundreds of kilometres, in temperature levels as cold as -42 degrees Celsius (-44 Fahrenheit). If successful, he will certainly end up being the first traveler in history to complete a solo journey to both poles in the exact same year.

He described the first leg (400km) as resembling a chess game: “2 steps forward, one step back”, adding that one morning he found himself 8km back from his goal since the ice had moved a lot in the evening.

Simply like a careful investor attempting to climb the peaks of ‘Mt. Gox‘, Hanneche will certainly frequently be required to take detours of several miles to stay clear of fractures that if failed would definitely bring about an icy fatality in the sea below. He needed to go the last 17 miles of his first trip without half of his equipment, running the risk of the possibility of losing his outdoor tents and sled on his return. Having actually grown his native Valencia’s flag, and a French Tricolor at the north pole, he now expects to do the exact same at the South, leaving from Cape Town on November 5th and crossing Antarctica to arrive in Chile 80 days later on.

Since the journey  is costing a massive EUR 60,000, he is connecting to the bitcoin community to raise the equivalent of EUR 2,000, the conventional price of sponsorship he charges Guaranteed Fair for a sticker label on his sled .

As a historical note the base station at which he will certainly show up is called after the 2 travelers who contended to show up there initially in the winter season of 1911. Amundsen’s well-known technique of marching 20 miles daily despite the weather at the South Pole is commonly pointed out as an example of intelligent financial investment of resources and energy.

Scott, lest we forget, whose strategy by contrast to Amundsen’s was to make finest use of the excellent days and rest on the bad, not just perished himself, however led his group to fatality in the effort likewise.

As more individuals get keen on digital money, tricksters are discovering more approaches to utilize it. For instance, tricksters may offer venture and business “openings,” promising to twofold your speculation or give you independence from the rat race.