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How to Use Bitcoin Futures to Profit on the Ups and Downs of Bitcoin Price

How to Use Bitcoin Futures to Profit on the Ups and Downs of Bitcoin Price

Are you trying to get into the Bitcoin crypto market but overwhelmed by the technicalities involved, like private keys, hot wallets, cold wallets? Well, I’ve got news for you. You can take advantage of the up and down volatile trends of the Bitcoin BTC without dabbling into any of these technicalities by trading Bitcoin futures. […]

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How to Use Bitcoin Futures to Profit on the Ups and Downs of Bitcoin Price

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Are you trying to get into the Bitcoin crypto market but overwhelmed by the technicalities involved, like private keys, hot wallets, cold wallets? Well, I’ve got news for you. You can take advantage of the up and down volatile trends of the Bitcoin BTC without dabbling into any of these technicalities by trading Bitcoin futures.

However, before we get started, let’s do a quick overview of the idea behind futures trading.

The easy way of thinking of futures contracts is that it’s a socially recognized and legitimate way of placing a wager on the future price of anything that has some form of value. It can be gold, interest rates, stocks, soybean, and in today’s modern digital age, Bitcoin.

Let’s take a quick example. 

Two friends may have a different opposing bias towards the future value of an asset, say Bitcoin. Friend-A says the future value of Bitcoin will trade at $23K from its current price of $15K in three months into the future, and Friend-B thinks otherwise.

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Well, both of them can draw up a futures contract to bind them in agreement and ensure they comply at the set date/time. Whoever is right on the future direction gets to keep the difference in the exchange rate, in this case, $8K ($23K minus $15K).

So, let’s summarize.

What are bitcoin (BTC) futures?

Bitcoin (BTC) futures are a class of crypto derivatives, which have their value derived from the Bitcoin price. 

Two parties transact (buy or sell) Bitcoin BTC at an agreed date/time in the future, without having to store bitcoin itself.

With Bitcoin futures, you can bet on the Bitcoin exchange rate’s future direction and make the difference if you are right without having to own Bitcoin. The Bitcoin futures market makes it easy for you to get paired against someone that wants to take a counter position to your trade.

You may still wonder about other benefits of Bitcoin futures, other than the ease of entering and exiting trades without having to hold Bitcoin.

Well, Bitcoin futures are traded on leverage, allowing traders to buffer their capital and, consequently, their potential profit. With Bitcoin futures, you can bet on the likelihood of a slump in the price of Bitcoin (AKA short selling) and make a profit if the price of bitcoin enters a downward trend.

To do this, you’ll need a reputable crypto exchange like BTCC.com, offering fast order execution without conflict of interest alongside all the benefits of Cryptocurrency futures trading including Bitcoin futures, Ethereum futures, Litecoin Futures, and more.

 

 

How to use bitcoin futures to speculate on the future price of bitcoin and make profits.

After registering and signing up for the BTCC.com Bitcoin futures exchange, you are now two steps closer to placing your first trade.

Here, we’ll walk you step by step using a visual explainer of a simple yet effective trend following trading strategy to trade Bitcoin futures on the BTCC.com crypto exchange.

The strategy follows the Dow Theory principles, where a bullish trend is identified as successive higher peaks and higher troughs, and a bearish trend is sighted as successive lower peaks and lower troughs.

Bearish to Bullish Trend (Long-Buy)

Using the above image illustration, we will identify a change in Bitcoin trend direction from a downtrend to an uptrend.

First, we identify a bearish (down) trend by connecting the lows to the highs and mark the broken significant support level. From there, we start to track the significant resistance level as we advance.

Since our goal here is to buy into a rising Bitcoin trend, we have to wait for the price chart to signal an end to the bearish trend by a price close above the significant resistance in a downtrend as shown above.

Now that the significant resistance is switched to support, you then wait for the price to correct back towards the level by at least two consecutive bearish closing candlesticks.

You can then go ahead to the order panel on BTCC.com to set your desired leverage, lot size, stop loss and take profit levels, and hit the buy button like in the image below.

It’s that simple. Now let’s check a scenario where we wait for the price to transition from a bullish to a bearish trend.

Bullish to Bearish Trend (Short-Sell)

In a scenario where we look to short the Bitcoin price due to a fundamental event and need confirmation from the price chart before we do so, we first establish that the crypto asset is in a bearish trend.

To do this, opposite to the bullish trend, we connect the troughs to peak and peak to trough in sequence, forming an upward zig-zag pattern.

A price close below the recent significant support marks an end to the bullish trend and indicates we should get set to take a short sell position on the BTCUSD.

Following a breach of the significant resistance, we have to wait for two consecutive bullish closing candlesticks to enter the sell order using the same order panel as with the bullish trend. However, this time, we have to click the sell button after setting our lot size and risk parameters.

BTCC crypto exchange offers Bitcoin trading as weekly futures contracts and perpetual futures contracts.

With the perpetual futures contract, there’s no expiration date or restriction on how long you can hold your trades, as long as you meet up with the required margin.

Below are margin requirements and leverage to profit from up and down swings of BTC price on BTCC.com.

Bitcoin Weekly Futures Contract on BTCC

Trading the weekly contracts on BTCC.com gives you a wide range of leverage to choose from, starting from 10X to 100X.

For a 10X leverage, you’ll only need to provide a margin of 900 USDT per one standard lot. A 100X leverage, on the other hand, allows you to trade with less margin, starting from 90 -900 USDT. 

The 50X and 20X leverages are 180 USDT and 450USDT margin requirements, respectively.

Bitcoin Perpetual Futures Contract on BTCC

The minimum leverage to trade the BTCUSDT perpetual contract on the BTCC.com exchange is 20X and a maximum of 100X.

The required margin for a 20X leverage is 450USDT, 180USDT for a 50X leverage, and 90USDT for the 100X leverage.

Conclusion

With as low as 90USDT, building on the strategy idea in this post and sprinkling some risk/money management juice, you can start trading either the weekly or perpetual Bitcoin futures on the BTCC crypto exchange and begin to profit from the up and downswings.

Go for a free account on BTCC now!

In addition to the English market, BTCC.com is now available in Korean (비트코인 선물), Japanese (ビットコイン先物取引), and Vietnamese (Hợp đồng tương lai Bitcoin). 


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DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/how-to-use-bitcoin-futures-to-profit-on-the-ups-and-downs-of-bitcoin-price/

Blockchain

Government Blockchain Week Story

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From September 27- October 1 of 2021, the Government Blockchain Association, GBA, will be bringing together blockchain enthusiasts from around the globe for their big event, Government Blockchain Week in Washington DC.

In spite of the ravaging of COVID-19, the GBA is planning to hold this event live in many of the iconic buildings of the Capital City. The September week will be the third time that this event has been moved farther into the future in hopes that when Government Blockchain Week finally happens, attendees will have no fears of contracting the virus.

The week will begin with a Blockchain Foundations class on Monday, along Embassy Row at the British Embassy’s Rotunda building. At the same time, Blockchain Use for State and Local Governance will be held at the Attorney General’s Office downtown.

On Tuesday, a DC government agency building will host the Blockchain, Innovation & Economic Growth with Pitch Competition. Competitors from around the globe will be pitching their blockchain solutions to a panel of investors and government policymakers. Prize money, as well as the chance to advance to the World Business Angels Investment Forum world competition is at stake. The winners will be chosen at the end of the day.

While this is going on, the Department of International Trade UK at the British Embassy will host Blockchain, International Trade and International Aid.

On Tuesday evening, attendees can purchase tickets for Blockchain Ambassadors, held at the historic Whittemore House, for an evening to network under the stars. This cocktail party, the first of 3 Evening Receptions, will feature strolling musicians, parlor talks in the grand rooms of the mansion, catering fit for a President, networking in Eleanor Roosevelt’s library, finishing off with brandy and cigars out on the patio as the evening comes to a close.

Wednesday will be a day full of cryptocurrency and cybersecurity. Beginning with the Legal, Law Enforcement and Cybersecurity Forum happening in tandem with the Money, Banking and Cryptocurrency Forum. Guests will agonize over which one to attend, because they will miss the other.

In the late afternoon, selected guests will be invited to the FinTech Round Table, hosted by the Embassy of Bahrain. This invitation only meeting of the minds will allow banking regulators and finance policymakers a chance to meet and discuss the changes that are happening in their industry.

On Wednesday evening, on the rooftop of the International SPY Museum, the GBA will host CryptoNite, and electric, black tie event filled with intrigue and drama. Words cannot describe what CryptoNite is. You just have to be there. This is the second of the 3 Evening Receptions.

On Thursday and Friday, the big guns of the Speakers’ list will show up at the Congressional Auditorium of the US Capitol where GBA will host their 2-day flagship event, The Future of Money, Governance, & The Law. During these two days, global leaders in blockchain, finance, cryptocurrency, government, and law enforcement will discuss where and how blockchain will dramatically change their industry. During the 2 days at the Capitol, GBA will host their

Annual Achievement Awards,

and a Digital Art Show.

On Thursday night, on the rooftop of Capital View 400, the guests of Government Blockchain Week can purchase tickets to attend the

Inventors and Pioneers Evening Reception.

For centuries, inventors and pioneers have shaped and impacted the whole of humankind. On this night, we celebrate the inventors and pioneers of the 21st Century who will impact the decade and the century to come. This final Evening Reception will be a great celebration of a monumental week, overlooking the dome of the Capitol under a sky full of stars.

Government Blockchain Week, September 27 through October 1, 2021, will be packed with forums, presentations, competition, awards, art, parties, and most of all, powerful and impactful networking. Anyone who hopes to make a stand in blockchain technology will benefit by attending this monumental event.

Author Bio

Kathy Dache’ is the Events Director of the Government Blockchain Association (GBA). She has over 30 years of training and events experience. She co-founded a blockchain professional networking group in 2016 and helped launch the Government Blockchain Association in 2017. She has conducted extensive research on blockchain and cryptocurrency topics including economic analysis, financial systems, and the impact of cryptocurrency adoption on governments. She has developed presentation and training materials on blockchain use in healthcare, identity management, supply chain management and many others. She has also been the GBA liaison for GBA speakers and dignitaries. Her passion is graphics and art.

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Blockchain

Wall Street Bets ‘Chairman’ Tweet Sends Dogecoin (DOGE) Soaring 85% in Hours

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The price for the popular meme coin, Dogecoin (DOGE), went flying today. The cryptocurrency skyrocketed by almost 90% in just a couple of hours after the ‘Chairman’ of the now popular Wall Street Bets group tweeted about it.

  • About a couple of hours ago, the ‘Chairman’ of the popular Wall Street Bets group asked whether or not DOGE has ever been trading at $1.
  •  After the Tweet went live, DOGE’s price went for the skies. The cryptocurrency soared by about 85% in a matter of hours and reached an intraday high at around $0.0145. The price has since corrected, but it appears that there’s still momentum in the market.
  • The reason for this excitement is what recently happened with the stock price of GameStop.
  • The Wall Street Bets group on Reddit saw more than 2 million people joining it with the common cause of buying GME stock against the trades of Wall Street hedge funds, who have been shorting it.
  • Not long after that, the price soared by up to 600%, causing mayhem on Wall Street and even getting one large hedge fund out of its position for what was reported as a massive loss.
  • The entire ordeal even saw the CEO of NASDAQ say that they would potentially halt trading in case of increased social media chatter.

“When we evaluate how we would manage through a situation where you see a significant run-up with a stock that is not based on news or fundamentals, we have technology that evaluates social media chatter, and if we see a significant rise in the chatter on social media channels and we also match that up against unusual trading activity – we will potentially halt that stock.”

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Source: https://cryptopotato.com/wall-street-bets-chairman-tweet-sends-dogecoin-doge-soaring-85-in-hours/

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Reddit Doubles-Down on Blockchain: Partners With The Ethereum Foundation

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The giant social media platform Reddit has doubled-down on its blockchain and cryptocurrency involvement with a new partnership with the Ethereum Foundation. As a result, Reddit plans to utilize the Ethereum network to create larger-scale applications like the Community Points introduced last year.

Reddit Doubles-Down On Blockchain

CryptoPotato reported last year that the San Francisco, US-headquartered platform launched Community Points as tokens built on the Ethereum blockchain. Users from two subreddits, namely r/CryptoCurrency and r/FortNiteBR, were able to receive the ERC-20 coins and spend them on various services, such as membership purchases or voting on polls.

Reddit asserted that the points will be a measure of reputation and contribution within each of the communities. Earlier, a platform administrator going by the handle u/jarins reaffirmed the relationship between Reddit and the blockchain space with a fresh partnership with the Ethereum Foundation.

“In this new stage of our partnership, immediate efforts will be focused on bringing Ethereum to Reddit-scale production. Our intention is to help accelerate the progress being made on scaling and develop the technology needed to launch large-scale applications like Community Points on Ethereum.”

Furthermore, the post explained that the Ethereum choice was rather apparent as Reddit was looking into exploring an open-source and publicly available scaling technology.

An Increasing Commitment To Blockchain

The post highlighted that the most recent initiative with Ethereum is a step to increase the platform’s “commitment to blockchain,” which should help bring “the value and independence of blockchain technology to millions of Redditors.”

Consequently, Reddit has established a designated Crypto Team and is looking for “engineers who want to build the decentralized Internet.”

Aya Miyaguchi, the executive director at the Ethereum Foundation, also commented on the new partnership. She noted that the team behind the second-largest cryptocurrency by market cap continues to “be impressed with Reddit’s vision, and by how it maintains its culture and philosophies, which were key in forming this relationship.”

Additionally, representatives of both parties plan to host an online session to answer users’ questions.

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Source: https://cryptopotato.com/reddit-doubles-down-on-blockchain-partners-with-the-ethereum-foundation/

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