Futures trading is not an extreme sport as many think. In fact, it is the easiest of ventures but a lot of misconceptions, lack of proper planning, and laziness to learn are what is making millions of traders lose their hard-earned money. The world of futures trading, in this case, ethereum as our focal point, is a tricky but easy one to navigate. You only need to learn the tricks, and dynamics behind the market as well as how it works.
Both internal and external agents could prove to be an enhancement towards profit making and also loss increment. To have a reasonable success rate for your ethereum futures trading journey, there are a few tricks and basic understanding you need to have, some of these will be demystified in this article. I will also be looking at how to trade effectively and make improved topics so, follow through.
7 Different Ways To Trade Ethereum Futures
There are several ways through which you can trade eth futures. Key concepts of trading are the same across all futures trading. You only need to understand the basic rudiment, read charts, understand candlestick ( this is the physiology of trading and every trader needs this to be successful) and trust your biases. In this article,the most important trading ways would be discussed. Below are different ways through which you can trade ethereum futures:
- Choose your crypto trading exchange platform, Create a Wallet, and Load USDT
You need to understand that there are a lot of cryptocurrency exchange platforms in existence. Some platforms liquidate you even before your invalidation point while some don’t have enough data and all you get is wrong quotes of prices. You need to do thorough research and identify the best platform to trade. Some of the most trusted exchanges include Binance, Kucoin, FTX, Huobi, and Coinbase. All these platforms have proven to be the best as they offer the best quotes of prices and you are not liquidated halfway before your invalidation point. After deciding on which platform you want to use, you need to create a wallet and load your account with USDT.
You will be dealing with USDT (stablecoin) as ethereum futures contracts are traded against USDT and also settled in USDT. As a newbie or professional trader, you are advised to only invest what you can afford to lose. Never invest with borrowed funds. Ethereum futures is not a Ponzi scheme where you double your investment in minutes so trade carefully.
- Decide on a Plan and Strategy
Although I have established in the introductory phase of this article that ethereum futures is not an extreme sport as many think, even so, you need to have a plan before you go in. Having to plan every trade is one of the many ways to trade ethereum futures as your chances of making a profit are increased. Having a plan involves coming up with a strategy, having to wait for a preplanned entry, and setting up a profit target and an invalidation point (stop loss). Having all of these planned out means you understand market dynamics and all your trades are well researched before making your final decision. Trading is a journey that needs a strong psychology as its fuel to move. Without all the above listed concepts planned out, the journey will not begin in the first place.
- Use the leverage effectively
Another way to trade ethereum futures is learning to use leverage effectively. Leverage trade is what makes futures different from other investment opportunities. You have the opportunity to amplify your gains through leverage if used effectively. As much as it is an important tool that could make you enough profit, if used wrongly, it could also prove to be your downfall, leaving your investment and portfolio to zero dollars. Learning how to use leverage involves controlling your urge and desperate need to make a quick profit. Learn to make a small profit consistently by using leverage that wouldn’t put your total portfolio at more than 5% risk
Conclusion
Trading is fun and profitable only if you follow the right ways. There are no two ways to make a profit on ethereum futures rather than to learn the basics, understand the dynamics, and use them effectively. Don’t be in a hurry to make a quick profit or ×2 your portfolio in two days. Learn slowly until you can consistently make a small profit before going for the bigger trades. Also, trust your instincts and decisions. You don’t have to doubt your biases. Make your decision and leave the market to play out itself. Remember, futures are volatile and as such, you have to be extremely careful when trading. This article is not financial and should not be treated as one.
