Recently, the virtual asset market has frozen sharply due to unfavorable factors related to FTX, the third-largest global cryptocurrency exchange. 바이낸스 거래소 한국어 The cryptocurrency market is in a very difficult situation compared to the fact that the New York Stock Exchange soared on the news of slowing inflation and showed the largest increase since April 2020. Literally, “Only the coin is being hit…In this bad situation, Bitcoin has hit a low of $17,000 in two years, and the overall price of virtual assets is plummeting. The volatility is very high, so please be careful when investing.
Today, we will use Binance, the world’s largest cryptocurrency exchange, to learn about Bitcoin futures trading methods that can make profits even when the market is on the decline and the atmosphere is depressed. Since the world’s third-largest exchange, ftx, has exploded and most cryptocurrency exchanges have become unreliable, I recommend you to use Binance, the world’s No. 1 exchange, if possible.
First, let’s understand futures trading and move on. The gift we’re talking about here means Futures, and we’re making a deal at this point in time by agreeing to sell at a predetermined price at some point in the future. The characteristic of futures trading is that unlike spot trading, it can enter two positions, which can be considered a long position if you invest in an upward trend, and a short position if you invest in a downward trend. For example, if you expect a decline, you can respond to the market through a short position by trading futures.
So why is bitcoin futures trading done through the Binance Exchange?
First of all, major cryptocurrency exchanges in Korea, Upbit, Bithumb, and Coinone, cannot trade futures themselves, so they have to use overseas exchanges, because Binance is the largest exchange. It doesn’t mean that small places are not necessarily good, but it’s better to use a large exchange to cope with the volume of transactions or possible security problems.
The reason why trading volume is also important is that futures trading can utilize leverage. In Binance, leverage investment is possible up to 125 times, but if you have 1 million won, it is the same as investing 20 million won even if you catch 20 times. If you invest in this way, you can get a return of 1 million won even if Bitcoin rises by 5%. Of course, considering the opposite, it’s just as easy to be forced to liquidate. Literally a high risk high return product.
In order to do bitcoin futures trading, we need to have a deposit to use first, right? Usually, when investing on a Binance exchange, you use a spot transaction wallet, but this time, you have to transfer the deposit from the spot wallet to the futures wallet first because you have to do a futures transaction. If you follow it slowly, you can move it quickly, so let’s take a look at each one. First, press “fight and spot” in the menu “Wallet” at the top right of Binance.
On the Binance Wallet Balance screen, press the “Transfer” menu in the upper right corner.
When you press the Transfer menu, a pop-up window appears as shown below. If you change to USD-M Futures and press the Confirm confirm button, the preparation for the futures transaction is complete. It’s simple, right?
Now let’s get started on the Binance Futures Trading window and look at the basic menus you need to know before trading. If you look at the red box on the left, there’s Funding, which is a fee concept to prevent biased investment in futures trading.
In a falling atmosphere, funding costs are mostly negative, and in a rising atmosphere, funding costs are positive, and long positions are paid to short positions. Please also note that the funding fee is applied every 8 hours.
Next, let’s look at the red box menus on the right. Cross and Isolated are options for investment modes, but lsolated is a common futures transaction. In this mode, only the self-established deposit is cleared, but Corss uses the entire asset in the futures wallet as a deposit, so you should be careful that all assets can be liquidated. It’s better for beginners to invest in lsolasted because you can easily pay off after investing too much, right?
Also, as mentioned briefly above, futures trading can be leveraged investment, but the leverage ratio can be set and up to 125 times.
Finally, let’s look at the order type when ordering actual gifts. Limit is a fixed price transaction, and the transaction fee is 0.02%. The market is literally buying at the current market price. The fee is a little higher at 0.04%. When the transaction amount is not large, the 0.02% difference is not a big fee.
In addition, Binance’s exchange Coin will receive a 10% discount on fees if you transfer BNB to your Futures wallet, and if you use another invitation code when signing up for a conversation, you may receive a discount on transaction fees.
When you sign up for membership, you can check the phrase your commission kickback rate 20%. If the phrase does not appear, the fee discount will not be applied, and if you have an existing exchange ID, please note that 20% transaction fee off will be applied if you sign up through the recommender above. For your information, this benefit can be applied in duplicate with the BNB discount.
Like this, we learned how to trade Bitcoin futures on Binance, the world’s largest cryptocurrency exchange. Although it has the advantage of being able to make profits in the bear market, holding cash, continuous observation, and studying would be an option rather than excessive investment in a highly volatile situation. As I said, the gift is a high-risk high-return product, so if you are investing for the first time, please start with a small amount.