What Are Bitcoin Futures? - for Beginners

Bitcoin futures is a cash- settled contract which settles to a specific, tradable auction price. A Bitcoin futures commitment whirls around users concurring to buy or sell a peculiar amount of cryptocurrency immediately it reaches a preset price on a later data The idea of futures contracts has been in existence for very many years, and they will definitely continue to be in existence for decades to come.

Generally, Bitcoin futures is an ideal way to take on risk, or even to transfer risk, depending on how antagonistic you ought to trade.
An investor of futures contracts acquires the right to vend Bitcoin at a particular price. Contrary, the seller concur to obtain the Bitcoins at a particular future date for that specific price.

More specifically, a seller usually takes a a long' position hoping that he/she will fetch a higher price per each Bitcoin at the resolution date. The buyer takes a a0 short' position hoping of purchasing said amount of Bitcoin at a price that is more favorable.
Bitcoin futures contracts are often considered so appealing since neither of the parties involved is ready to immediately complete the transaction.

Bottom Line

Bitcoin futures trading and contracts on an exchange are normally risky, and investors must ensure that they are very sure of whatever game plan they opt to use Also, since exchanges are exposed to risks of theft and hacking, it's wise that you do not trust an exchange with all your cash.