6 reasons why bitcoin futures are better than bitcoin

In the year to date (2017), the price of bitcoins has risen from around $990 to over $17,000. This represents an increase of 1700% , or almost 20 times the increase in one year. This unprecedented rise in cryptocurrency "value" is perceived by many as a bubble. A recent CNBC Fed survey conducted in December found that more than 80% of respondents indicated that they believe the current Bitcoin price is overvalued and has all the classic symptoms of a bubble.

In the same survey, 17% remained unsure of the cryptocurrency's future prospects, while 2% agreed that the current valuation is based on fundamentals. Interestingly, when the CBOE launched a futures option on bitcoin, it jumped around 20% to $18,545 with delivery in January 2018. Bitcoin futures are considered a hedge against bitcoin volatility, especially for investors and traders looking to bolster their positions. Investing in bitcoins in reverse. By betting against bitcoins in the futures market, institutional investors and traders can protect themselves against market downturns.

For other Bitcoin fans, the futures market serves as an indicator of general mood. If bitcoin futures markets are optimistic, traditional bitcoin traders and investors are likely to follow suit. If bitcoin futures markets are bearish, we can expect similar results. It's worth noting that futures markets offer advantages not available with traditional bitcoin trading and investing. For starters, here are 6 unique ways why it can be more profitable to invest in bitcoin futures:

Profit in either direction : With bitcoin futures, traders and investors can take a long or short position on the underlying cryptocurrency, i.e. bitcoin. Money can be made by betting on future bullish or bearish movements of the digital currency. Unlike traditional bitcoin investments, where bitcoins (BTC) are bought and held for an indefinite period of time (in order for a rise to occur), bitcoin futures do not require this.

Transparent pricing defines futures contracts - Bitcoin futures markets offer contracts that are settled at the end of the day at 100% transparent reference prices. These reference prices are used universally in all types of contracts and provide greater trust and wider acceptance by traders. The same could happen with Bitcoin, which will be embraced by the wider global community.
Bitcoin futures do not require the purchase of bitcoins : traditional bitcoin trading requires an investor or trader to buy the cryptocurrency and hold it in a digital wallet or on a trading platform. This is inherently risky because of cybersecurity threats, fraud, loss of private keys and other cryptographic data, etc. D. Bitcoin futures is a speculative market where there is no need to store bitcoins. It is simply based on price speculation. In other words, traders and investors predict which direction they think the markets will move in the future and hedge their bets accordingly.

Bitcoin futures are run by professionals, not bitcoin inventors. This means that rules and regulations are in place to stabilise market activity. For example, circuit breakers shut down trading activity when markets experience too much volatility. This is done to help traders withstand sharp price fluctuations. Traditional Bitcoin exchanges and platforms do not have such switches, and market trading can continue uninterrupted regardless of how high or low the price of Bitcoin is. This leads to more accurate price discovery in bitcoin futures markets, and traders will have a much better understanding of how to price the currency for future-dated trades.

Bitcoin futures markets are fully regulated by the CFTC, an important distinction between bitcoin trading and futures markets. The Commodity Futures Trading Commission is a government-run organisation that oversees the futures markets. This is good for bitcoins and futures markets because it gives them additional credibility and trust.

These are 6 reasons why bitcoin futures trading may be preferable to traditional bitcoin trading on the https://exness1.org/ platform. The best approach is to combine bitcoin futures trading as a hedge with traditional bitcoin investment and trading.

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