What Are the Risks of Crypto Futures?

Suba

Moderator
Staff member
Futures contract is an investment instrument that has been widely applied to other commodities such as stocks, because the promised return is very high and of course the risk of loss is also high.

What are Crypto Futures Contracts?
A crypto futures contract is a contract that contains an agreement between two (or more) parties. The contract states that there are crypto buying and selling transactions carried out on a certain date and with a certain amount. Crypto futures contracts offer investment at the current price but for the future value of crypto,

For example, if the price of Bitcoin today is $21k, after you study Bitcoin's performance and predict the price, then at the end of this month the price of Bitcoin will be $25k and if your prediction is correct, you will make a profit. In other words, crypto futures contracts are investments based on investors' predictions. Therefore, investors must pay attention to the expiration date or expiration date, which has been mutually agreed upon by both the seller and the buyer.

What Are the Risks of Crypto Futures?
If we look at how crypto futures contracts work, there are several risks such as:
1. The risk of loss is high, because it is only based on predictions of future crypto prices.
2. The expiration date creates a time constraint.
3. The volatility of crypto is very high often making profits but also many times making losses.
 

coin456

New member
Good insight man. Futures should only be traded when you have good knowledge of where the price would go. You also should not over leverage or else you will lose your capital
 
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