Futures are a popular trading option among cryptocurrency enthusiasts and serious investors alike. And while many platforms and crypto exchanges offer future options, there are plenty of differences between the future trading tools available in the market today. If you’re looking to start trading crypto futures, here are some of the questions you should consider before choosing a platform.
1 – How beginner-friendly is the platform?
Complexity has its perks. A complicated future trading platform will typically have all the options a veteran needs to maximize their profits and automate different strategies. However, if you’re new to trading futures, the last thing you want is to be dealing with unnecessary complexity.
When considering different options for trading futures, look for platforms that can match your current skill level and needs. Whether it be a beginner-friendly platform that has tools in place to help learning and mitigate losses. Or a veteran-oriented platform that comes with complex tools and advanced features.
A good option to look for as a beginner is platforms that allow demo trading. A demo account will give you virtual assets you can invest for training purposes, to help you familiarize yourself with the platform and different strategies without risking your assets. Several crypto platforms offer demo accounts — BTCC.com is a good example.
2 – How safe is the platform?
Make sure you check a platform’s safety record and online reputation before making any large investments. Platforms that have recently been involved in major data leaks or that lack basic security options are often best avoided. You shouldn’t trust your assets to a platform that doesn’t allow users to enable two-factor authentication, for example.
3 – How liquid is the platform?
Liquidity is an important factor to consider when trading crypto futures. The more liquid a platform is across different coins, the easier it’ll be for you to buy and trade large sums. You don’t want to find yourself in a position where you can’t execute a strategy because your platform doesn’t have enough coins on hand to support your move.
Figuring out how liquid a platform is can be tricky. Some exchanges and future trading platforms will have that info listed online or disclose how much you can buy and sell without waiting times. Another good way to gain some insight into a platform’s liquidity is to check reviews, especially ones written by companies and high net-worth traders.
4 – What are the fees?
Deposit, withdrawal, and trading fees are all factors to consider when choosing a futures trading platform. You should look into and compare not only how much you can be expected to pay in fees at your trading level, but also try to assess how complex a platform’s fees are.
Sketchy platforms will often try to make their fees look smaller by making the math complicated and making it hard to figure out how much you’re paying. So be on your guard.
5 – What are the perks?
One of the ways future trading platforms earn and keep clients is by running promotions and reward campaigns. Seasonal events, tier systems for big spenders, rewards for long-term users, and various other promotions can be a good way to mitigate the cost of fees and increase how much you’re getting out of future trading options.
It can be hard to objectively assess how much value you’ll get from the promotions and campaigns on one platform vs another. But if all other factors are equal, you should always choose a platform with frequent promotions over one that never does any.