Is Crypto Futures Trading any Different From Sports Gambling?
The Bitcoin industry has been rife with scams and thefts, so it's hard to believe that the currency will be able to sustain itself over the long term. Even though there are some who claim Bitcoins are the currency of the future, I just don't see it. It has also been linked to drug trafficking and illegal gambling. I see it as a fad and nothing more, and as more people lose real money because of the legal issues surrounding Bitcoin, I eventually see it fading from existence.
Introduction: Crypto Futures Trading
Before I go on, let me explain what crypto futures trading means. In crypto futures, you are buying or selling an asset that represents the value of a specific cryptocurrency.
When you purchase a futures contract you do not own the actual cryptocurrency instead you own an agreement to buy or sell at a particular price at a future date.
Why Futures Trading/How do they work?
With the prices of Bitcoin fluctuating with serious price inflation, Futures crypto trading is the trend because future contracts allow investors to buy and sell at a specific price against the possibilities of the wild price effect which may be of serious damage in spot trading. If investor A for example believes the price of Bitcoin is going to go up then investor A can buy a futures contract and when the price goes up depending on the margin and leverage, investor A can make profits. And likewise, if Investor A believes Bitcoin may go down investor A can also get into a Sell contract that if the price drops as regards to the margin and leveraged investor A make a profit, Pretty Easy Right?.
Do Crypto Futures Traders Make Money or Lose Money?
Crypto Futures trading is a high-risk high-reward endeavour, it is for people who have a lot of knowledge on how the crypto market works. If you are someone that cannot accept the loss of your investment then crypto futures isn't for you also for newbies crypto future trading is not for you either. In futures trading, you can make a lot of money and sometimes new people refer to it as a quick rich scheme but I must tell you that is rarely the case as the market is highly volatile and takes a lot of knowledge to get your prediction right.
Personal Experience.
I got some money a year ago and decide to trade with it on futures at first it became a very adventurous experience as my money got tripled in the first week. I was very impressed at the rate at which I could become very rich quickly but yeah all of a sudden I lost it all because of a lack of knowledge and greed.
Conclusion
This is my first cryptocurrency-related post on Steemit and I would like to keep sharing my knowledge and thoughts here. Please feel free to ask questions, drop comments and also your suggestions are highly welcome.
Thanks for your attention! and see you next time!