Binance crypto futures
It is no secret that the cryptocurrency market is one of the most lucrative industries on the planet lately. While some disagree, it is hard to ignore how the digital asset market is thriving. Derivatives trading is among such fascinating concepts. Unlike spot trading, derivatives trading is more flexible and manageable because it derives its value from the primary underlying asset.
What is Binance?
The cryptocurrency exchange Binance was incorporated in early April 2017. Despite the large number of different features, using the site is simple and intuitive, even for a novice user.
Binance's interface is available in 16 languages - English, Spanish, German, French, Chinese and some other less popular languages that are popular in Europe.
The functionality of Binance will satisfy the needs of both the beginner and the advanced trader, since the exchange offers two modes - Advanced and Basic (Advanced and Basic). There is no fundamental difference between the two. The Advanced interface is good only if you need to draw charts and use a lot of tools and indicators. Another difference is in the design - in Basic you can choose light or dark mode, in Advanced - only dark mode.
Advantages of Binance exchange:
- Over 365 cryptocurrencies to trade worldwide: Binance offers hundreds of cryptocurrencies to trade around the world. This makes it a good option for active traders who want to diversify their portfolios;
- Low commissions;
- Wide range of trading options and order types;
- Availability of a mining pool: thanks to its new "Pool" feature, users can place their coins, which then earn interest.
Disadvantages of Binance:
- The platform is complex and can be confusing: While the wide range of features and trading options on Binance can be interesting, it can also be quite challenging for newcomers. Even experienced traders may feel uncomfortable with too many features in the front office.
- No built-in digital wallet: While some popular exchanges have built-in digital wallets, Binance does not. It recommends Trust Wallet, which has a good reputation, but can offer only limited support if there are problems with transfers to Binance.
What are crypto derivatives?
Binance derivatives are often discussed when it comes to the crypto industry. It is worth noting that a derivative is one of the oldest forms of financial contracts on the market.
A derivative is a financial contract between two or more parties based on the future price of the underlying asset.
Over the centuries, derivatives have evolved to become one of the most popular financial instruments. A derivative Binance in the UAE refers to a security whose value is based on an underlying asset or benchmark. A contract may be concluded between two or more parties willing to buy or sell an asset at a certain price in the future. The value of the contract will thus be determined by changes or fluctuations in the price of the underlying asset.
What is a crypto derivatives exchange?
Crypto derivatives exchanges are those exchanges that provide a contract trading service between a buyer and a seller, at a specific date. In spot market trading, the asset is bought at the market price. In Binance cryptocurrency derivatives trading, the asset is bought at a price that the seller and the buyer have determined at a future date. The buyer is obliged to buy back the asset when the contract expires. In this way, market fluctuations and changes in the price of the asset profit one party to the contract.
Binance is one of the largest international online digital currency exchange services. Dozens of cryptocurrencies are exchanged.
How does Binance cryptocurrency derivatives trading work?
Traders can make money on the price movements of Binance cryptocurrency derivatives. Because the future market price of the underlying asset is unknown, all traders take the risk. If the commodity is cheaper at the time of execution, the seller makes a profit and the buyer is left with a loss. If the price goes up, the buyer receives the profit.
To increase the profit trader uses the leverage - a loan provided by the exchange. The size of the leverage is proportional to the deposit made by the trader. Thanks to this, the trader can make transactions for large sums.
How to trade Binance derivatives in the UAE?
Binance cryptocurrency derivatives trading is pure price speculation, the main advantage is making a profit even if the price of the asset falls (opening a short (short) position).
On the Binance derivatives in the UAE market, multiple orders can be set to lock in profits and losses at once. That is, the user can choose to take a small loss in case the trend goes in the opposite direction. This approach is important for risk management and risk hedging.
Binance trading cryptocurrency derivatives in the UAE is closely linked to the use of leverage. Trading with leverage, or trading with leveraged tokens, allows one to operate with amounts many times larger than the trader's own deposit. For beginners, it is better to gain experience in trading with a little leverage first. They should study crypto derivatives in detail, and only then start trading with perpetual swaps.
Remember: the pursuit of profit in the cryptocurrency market almost always leads to losses, but patience is rewarded. So good luck!
In today's world, online services are making it easier for Binance to trade cryptocurrency derivatives in the UAE, using technology and offering new forms of investment.
How to sign up?
Remember to complete the two-factor authentication (2FA) including phone or email verification for added security to your account.
How do I open a Demo Account?
Binance cryptocurrency derivatives trading platform, gives you the opportunity to try trading without worrying about your savings by opening a demo account. You do not have to turn down the opportunity to try your hand at demo account. A demo account gives you a chance to get priceless trading experience, learn how the trading platform works, and learn to manage your emotions by experiencing unexpected spikes in the market and unpredictable events, so that next time a trader will react less acutely.
How Do I Open a Live Account?
Once you have gained an understanding of how Binance derivatives trading works in the UAE, you can move on to a real account. There are several ways to make a deposit.
- Deposit from a card. This way is the most popular as everyone has a bank card with fiat money. Only verified users may direct deposit money from their card to the Binance wallet. If you have not been verified, you will need to do so, or use another method.
- Replenishment of Binance with Advcash. Since 2019 Advcash payment system is the official partner of Binance. To deposit money through Advcash to your wallet balance, you need to have a verified Advcash account and link it to Binance. Because of this method is not suitable for many people, but replenishment with this method is commission-free.
- Recharging via p2p. This method is only for verified users. This is the most simple and profitable method on the Binance exchange. There is no commission for the deposit. The p2p platform itself is a custom exchanger within Binance. The advantage of the method is that the rate is created by the traders. You can choose to buy the cryptocurrency that suits your needs.
Binance derivatives list:
- USDT futures. Standard futures with margin in Tether (USDT, BUSD). You can lock in profits or losses in either USDT or BUSD (Binance Tether dollar).
There are perpetual and deliverable contracts in USD-M:
1. The perpetual USD-M contract is a contract which has no expiry date. You can keep these contracts as long as you need. It's the most commonly used one.
2. Delivery contract USD-M (quarterly) - a delivery contract has a delivery deadline. I.e. its closure or change. You know the term at the time of the contract transaction.
- Coin futures. Standard futures with margin in cryptocurrency in which futures were bought, not in Tether, this is the main difference from USD-M. There is also a perpetual and a deliverable contract.
- Leveraged tokens. Binance leveraged tokens are assets that give users access to the underlying asset, but with leverage. Each leveraged token represents a "basket" of perpetual contract positions. The price of the tokens depends on changes in the notional amount of open-ended contract positions and changes in leverage ratios. Unlike leveraged trading, when opening a leveraged position, the user does not need to use collateral and maintain margin, or worry about the risk of liquidation.
- Binance options are American style options which can be exercised at any time before the expiry date. Binance options settle in cash and therefore do not require physical delivery. Unlike traditional options, Binance options have a shorter expiry time, ranging from 5 minutes to 1 day. Binance options have only one strike price, equivalent to the price of a Binance Futures contract. In other words, Binance options are always "in the money".
How does Binance crypto futures trading in the UAE?
Futures contracts are classified as derivatives, that is, trading instruments derived from an asset. Derivatives, specifically futures, are a very popular trading instrument, which was created a long time ago to speculate on the value of commodities and raw materials.
Binance crypto futures in the UAE is an agreement between two parties to buy or sell a digital currency, on a predetermined date and at a predetermined price. Essentially, it is a kind of bet on the future price movement of the asset.
Binance crypto futures trading allows investors to make money from the movements of the digital currency without directly holding it.
This trading option has several advantages. First, cryptocurrency trading is currently either under-regulated or not regulated at all in many markets, whereas futures trading is much cleaner and more transparent in this regard. Investors simply do not have to fear any changes in futures trading regulation in the next five years, which is not the case for digital currencies.
Second, Binance crypto futures in the UAE provides an opportunity to make money in regions where digital assets themselves are banned, because market participants are not buying and selling coins themselves, but a contract. In other words, you can make money with this tool without facing the risks associated with trading digital coins directly.
Another advantage of Binance crypto futures is leverage. The term refers to the functionality whereby the exchange allows you to deposit part of your capital on an investment, providing you with the remaining funds.
Crypto futures are more popular than crypto-options, which are a different type of derivative. In an options contract, the option buyer has the right, but not the obligation, to buy the underlying asset in the case of a call option or sell it in the case of a put option at a predetermined price within a certain period. Both derivatives allow traders to hedge against volatility risk and try new forms of trading, which may be more profitable than regular trading.
Traders prefer Binance crypto futures trading because of its convenience and lower risk of hacking compared to the spot market. Give it a try and you're sure to get rich!