Why Should You Invest in Crypto Futures Over Crypto Spot?

Crypto Futures

If you are a beginner or do not have a different sense of humour, you are more likely to ask this question. Crypto futures and Crypto spot – are popular cryptocurrency trading tools with their own set of rules, procedures, and benefits, and do not miss out on risks.
When it comes to options, we have to admit that the crypto futures market is a better trading platform than the crypto spot. Here are the reasons for that.

1. It requires less investment

Investing in the crypto futures market has a unique advantage, which may sound strange to beginners. You do not need to have a large bank balance to trade. Unless you actually own digital currency, you can buy and sell it to make a profit. All that is needed is a basic idea about the price of a commodity, and it is ready to go.

2. Top returns

The future of Crypto is similar to the SIP long-term investment plan in terms of return, although there are many differences between digital currency and traditional investments beyond the scope of this article. Let’s take the example of bitcoin price change during long and short terms to understand – why the futures market is said to be highly profitable.


If a cryptocurrency trader invested in bitcoin by the end of 2020, he would have earned about 130% shares or profits over the investment considering the price change from $ 26, 363 (29 December 2020) to $ 60,863.80 (April 13, 2021). Even a small investment like USD1000 would be USD2300. What if the market has collapsed? It is okay to ask a question. Well, in this case, future investors have the option to use a variety of betting strategies.

Now consider the market investment. Below is the local market price change for the list of cryptocurrencies. Look at the surrounding area or the current price of bitcoin. If you buy and sell bitcoin as the best bid and ask for the best at once, you are likely to lose $ 6 for each bitcoin. Even if you trade the best bid for the best bid prices, the profit will reach $ 6.

3. Low risk

Cryptocurrency futures trading futures option itself. Retailers and buyers avoid buying and selling immediately based on the current price, and go to futures contracts where they hope the value of the asset will work out to their expectations. They enter into a contract with a different view of the market direction, but both have one thing in mind to find insecurity in any volatile market situation and make a profit.

How would you respond to any unexpected turnaround? You can reduce the risk of future risks in the event of a negative price movement for your crypto assets. Protective strategies such as short-term trading provide a type of insurance cover.

A temporary sale involves taking a position in the real estate market believing that the value of the underlying asset will decrease. You can buy it later at a lower price – to benefit from the difference.

How Is The Price Of Crypto Futures Determined?

Price analysis is speculative but based on descriptive and predictable market analysis, upcoming events, acquisitions, etc. Real estate is also an important factor in determining future value. The cryptocurrency exchange introduces new futures contracts with expiration dates for the next three months. For example, bitcoin contracts that will expire in May were introduced in March. Generally, a 3-month absence contract is presented on a monthly basis.

I hope you understand the benefits of choosing the future of crypto in the crypto space. Many trades, such as the PCEX Member, have made it easier for you to trade using your preferred instrument. It is incredibly easy to buy and sell crypto goods via USD. We are among Singapore’s few cryptocurrency trading companies to give you a choice. Subscribe to our latest fintech blogs to stay tuned to the best crypto trading processes, Singapore Digital Exchange.