Crypto futures trading allows traders to predict future price movements and enter agreements to buy or sell assets at predetermined prices on future dates. However, it calls for traders to address and stay strong in the market with higher crypto volatility. In this segment, each market fluctuation becomes an opportunity – and whether you make a profit or loss out of it depends on how you make a trade, thus demanding expertise, timing, and a reliable exchange platform.
Crypto futures is a game with higher stakes, requiring you to choose the best platform for futures trading. The platform must offer advanced features, superior liquidity, user-friendly interfaces, and swifter order execution.
In the crypto market, risks are real, and without due consideration, financial setbacks are potential. In this article, we list the best futures trading platform for 2024. These platforms are renowned for guiding traders based on liquidity, diverse futures products, maximum leverage, and reliability.
Best Crypto Futures Trading Platforms of 2024
StormGain Exchange is the best platform for futures trading that assists in managing and trading cryptocurrencies. It provides a user-friendly interface for beginners as well as experienced traders. It also facilitates buying, selling, and exchanging transactions at competitive rates.
StormGain is also known for its distinctive feature, offering direct Bitcoin mining to put your Bitcoin to use when you’re not actively trading. This is an added avenue for the traders’ crypto holdings’ growth. The platform also comes with timely buy/sell signals that assist traders with informed decision-making and maximized profit potential.
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It provides leverage of up to 500x leverage for experienced traders. This makes significant profits for the traders from smaller market movements. -
Users may also make a free demo account with $50,000 in virtual funds to practice and master crypto futures trading strategies.
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It charges a fee of 10% for profitable derivative trades, which adds to the already amplified crypto withdrawal fees.
OKX is a crypto futures platform, particularly for traders seeking delivery futures contracts. OKX offers a diverse range of options for future trade pairs. It supports futures on popular cryptocurrencies like Bitcoin, Dogecoin, Ethereum, Solana, Polygon, Aave, and Arbitrum. The platform is also known for providing impressive features, like perpetual futures, options, a decentralized exchange, crypto savings accounts, and crypto loans.
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Futures trades are available with expiry dates on OKX, which offers flexible trading strategies. -
It supports numerous cryptocurrencies, including Bitcoin, Dogecoin, Cardano, etc. -
It offers perpetual futures and options with comprehensive crypto futures trading features.
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In case of a full liquidation, the maximum leverage reduces to 20x.
Binance is a giant in the crypto space. It also offers perpetual and futures settled in USDT, BUSD, or any other underlying cryptocurrency. It supports over 600 cryptocurrencies, including Bitcoin, XRP, Dogecoin, BNB, Ethereum, Solana, Cardano, etc.
Binance is one of the best futures trading platforms for a wide range of traders, both novices and experienced. The platform features significant crypto options, spot trading markets, and advanced tools for trading.
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It offers extensive coverage, supporting perpetual and futures for over 600 cryptocurrencies. -
It comes with the flexibility to settle futures in various currencies. -
The crypto futures trading options are diverse, with varying strike prices and expiry dates.
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There have been certain legal issues recently, with money laundering charges, bringing uncertainty among the users related to Binance.
KuCoin is one of the most popular crypto futures platforms. It facilitates derivatives worth over $1.1 billion in volume. It also supports a broad range of futures markets, including linear and inverse contracts, and caters to nearly 25 million users.
The platform is popular for high-volume futures markets with up to 100x leverage. Additionally, it supports major cryptocurrencies along with meme coins.
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It supports a high volume of derivatives to trade and thus has a substantial user base. -
It is available on both linear and inverse futures contracts. -
It supports a variety of meme coins, adding diverse options for traders.
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It charges higher commissions compared to other platforms.
Bybit is a preferred choice for traders seeking long-term futures. It provides delivery contracts with a 6-month expiry date for options like Bitcoin and Ethereum; a perpetual trade option is available for other cryptocurrencies like Dogecoin, Ripple, or Cosmos.
Bybit has a substantial trading volume that exceeds $11 billion. The platform supports crypto futures trading on its website and the mobile app, facilitating flexibility for traders. It also provides integrated TradingView charts and features like automated bots, OTC trading, and copy trading.
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It caters to longer-term traders with support for delivery futures, having a 6-month expiry date. -
It is known for its enhanced crypto futures trading volume and liquidity levels.
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The long-term delivery futures are only limited to Bitcoin and Ethereum.
Bitget is a global crypto exchange and Web3 company that offers a wide range of services, including spot, futures, margin trading, bots, APIs, launchpad, and Web3 wallet. It supports over 550 cryptocurrencies, including Bitcoin, Ethereum, and various altcoins. With this, the platform can accommodate a diverse range of traders. The prime focus of Bitget is on competitive fees, high liquidity, faster order execution, and robust security.
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It provides competitive fees for spot and crypto futures trading and added discounts for BGB token holders. -
It supports a dedicated copy of futures trading for beginners to follow experienced and expert traders. -
It offers various trading bots that provide flexible crypto futures trading style and strategy.
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It has limited support for fiat currencies and payment modes. -
There are accessibility restrictions related to Bitget in certain countries, including the US, Canada, Singapore, and China.
BitMEX is a cryptocurrency exchange excelling in the crypto derivatives exchange market. Experienced traders widely use it. The primary strength of this platform lies in crypto derivatives exchange, including perpetuals and futures contracts. BitMEX also has its native token – BMEX. And it’s holders get free discounts and rebates.
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It provides a crypto derivatives trading experience of a professional-grade. -
It offers up to 100x leverage on Bitcoin and Ethereum trades. -
It holds deep liquidity for Bitcoin perpetual futures contracts.
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It only supports crypto-to-crypto trading. No fiat deposits are allowed.
What is Cryptocurrency futures?
Cryptocurrency futures contracts allow trades for a specific crypto’s value at a predetermined time. This helps forge agreements between traders to buy/ sell crypto at fixed prices on future dates. These contracts enable traders to bet on price movements without owning the underlying assets. With leveraging in the future, one may amplify the investment amount and hence the profits and losses.
What is the Cryptocurrency Futures Funding Rate?
Cryptocurrency funding rate is a mechanism that aligns futures prices and spot market prices of underlying assets. This rate can be positive or negative, implying the fees for long positions or compensations for short. The funding rate helps ensure a market equilibrium, which impacts the traders’ profitability. Thus, it is crucial to understand the mechanism and experience effective strategies in the volatile cryptocurrency futures market.
Staying safe while trading crypto futures
Crypto futures trading introduces traders to leverage, with a potential risk of forced liquidation. It is a phenomenon that may occur in case the margin requirements for a trade remain unmet, and the position’s value starts a downward graph.
Forced liquidation concepts intervene and initiate a trade when the margin balance falls short – to prevent any further losses on the leverage amount from the particular trade. Eventually, in such adverse scenarios, the traders either have to infuse additional funds to stabilize their position or part ways, selling their crypto.
Liquidation reminds traders that margin calls can happen when least expected in the volatile and dynamic crypto market. It emphasizes risk management, strategic planning, and tracking market movements. But, there certainly are some ways to strategically overpower the possibility of liquidation and have a profitable futures trade, like:
- Develop a Trading Plan: Advanced planning of trades helps mitigate the liquidation risks. This involves profit planning while making effective exit strategies for unexpected trade outcomes. This step helps mitigate impulsive decisions influenced by emotions and falling under the greed or fear grid traps.
- Secure your Positions: No matter how many precautions you take, crypto markets are volatile and can move unexpectedly. Thus, to mitigate potential losses while enhancing effectiveness, it is recommended to implement an exit strategy reinforced by stop-loss orders. Stop losses are an effective way to avoid liquidation but require constant vigilance.
- Track the Margin Ratio: The margin ratio is calculated by dividing the maintenance margin by the margin balance. Constantly monitoring it helps effectively avoid liquidation risks. If the margin balance falls below the maintenance margin rate, automatic position closure is triggered. This emphasizes the need for careful monitoring.
- Practice Trading: Several popular platforms allow newbie traders to make demo accounts for practicing crypto futures trading. For example, Binance Futures allows real-time practice without putting capital under actual risk. Additionally, active traders can use Mock Trading to test new strategies and tools and gain valuable experience.
- Risk Management Strategies: To manage risk effectively, limiting the exposure of the trading account balance to 1-2% per trade is essential. Hence, it is recommended to begin with 2x to 5x leverage and avoid large positions initially. This helps develop a crypto futures trading methodology without excessive pressure.
- Avoid Compounding Losses: By increasing positions in a losing trade, the liquidation risk gets even bigger. Instead, one must focus on risk management to cut losses by closing losing positions. This also involves establishing and adhering to a trading plan to avoid impulsive decisions.
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Frequently Asked Questions (FAQs)
Cryptocurrency futures pose an inherent risk due to the volatile and dynamic crypto market. Thus, trading with crypto futures requires careful consideration and due diligence to avoid losses.
There are multiple crypto futures trading platforms with varying fee structures. A few exchanges charge extremely low fees for traders with a large volume and higher fees for traders with a lesser volume. Binance and OKX, however, are among the cheapest exchanges in the crypto futures, starting at 0.02% for makers and 0.05% for takers.
Binance futures fees is the lowest, and it has the highest future pairs with maximum trading volume in the market. It offers perpetual and futures markets on over 600 cryptocurrencies.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
CoinGape prepared a review methodology to rate crypto exchanges, tools, and apps. We curated a list of metrics to evaluate crypto platforms based on their services, user experience, security and customer support, payment gateways and charges, pricing and promotions. Visit our Review Methodology page to learn more about how we review each crypto platform.
This content is purely for educational purposes and should not be considered as financial advice. Do your own research before investing in any crypto platform and only invest the amount you can afford to lose.
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