Where can I learn crypto future trading for free?

Get Started with Crypto Futures Trading for Free

 

Learning how to trade in the crypto futures market can be an exciting and profitable venture.

The crypto futures market has boomed over the past several years, and with that growth comes an increased interest in the financial markets surrounding cryptocurrencies like Bitcoin, Ethereum, and Litecoin.

Understanding how to trade crypto futures successfully isn’t necessarily easy, but that’s where we come in. We’ll walk you through everything you need to know about trading cryptocurrencies on a futures exchange.

 

What is a crypto future?

A crypto future is a way to invest in cryptocurrencies without actually having to buy and store digital coins.

In other words, it’s a type of financial derivative that allows traders to gain exposure to cryptocurrency prices without actually holding any coins.

The crypto future is similar to stock futures in some ways but different in many others. Read on for answers to common questions about crypto futures.

(You can also learn more about how crypto futures work in our detailed guide.)

 

How do crypto futures differ from options, ETFs, stocks, and cryptocurrencies?

The first thing to understand is that futures are not options. When you trade stock, you're trading shares of a company.

That means that if its price goes up or down, you'll make money (or lose it) based on how much of your investment was tied up in that one business and how much of a percentage change occurred.

With futures, however, you're placing a bet on a contract to deliver an asset at some point in time in the future. That's why they're often referred to as derivatives.

It's important to note here that we're not talking about leveraged contracts—you won't be borrowing money from your broker—but we will discuss margin later.

 

Should you start investing in crypto futures today or wait until later on?

So, you’ve decided that crypto futures trading is for you—a good choice! Before you start buying and selling contracts, there are a few things you should know.

First, there’s a lot to learn about making an investment decision in any market. If you want to make sure that your research process is in order before diving in head first, take a look at our comprehensive guide on how to invest.

It covers everything from evaluating what cryptocurrency project makes sense for your portfolio to avoiding getting scammed by fake ICOs or exchanges.

Once your head is screwed on straight, feel free to start exploring exchanges!

There are plenty of places where you can buy and sell bitcoin futures, including CME Group, Cboe Global Markets, Chicago Mercantile Exchange, Intercontinental Exchange (ICE), Cantor Exchange, and New York Stock Exchange (NYSE).

There’s no need to limit yourself to just one exchange—if you find one that works well for you, stick with it. However, if they don't offer what you're looking for, it's always good practice to shop around a bit before settling down somewhere new.

 

Best practices for beginners

If you’re just getting started with crypto futures trading, it can seem overwhelming. In fact, if you don’t have any experience trading at all, things can be downright confusing.

That’s why some of your best resources are other traders. Whether that means asking your friends or online communities like Reddit, or seeking out cryptocurrency forums that offer free tutorials and guidance to beginners, there are tons of great ways to find information—and lots of people are happy to share what they know!

If you need more resources to get started learning how to trade crypto futures on your own or simply want a list of places you can go to begin trading crypto immediately (regardless of experience), check out our guide here.

We also wrote about 6 common mistakes to avoid when trading crypto here, so make sure you read up on those too!

 

Reasons why you shouldn’t start yet

Coinbase and Binance are great tools to start trading crypto futures. You can invest as little as $5 on Coinbase, so you don’t have to worry about committing a large amount of capital right away.

As far as exchanges go, you can trust these two platforms because they both have reputations for high security and reliability.

If you’re interested in learning more about how to use either of these services, check out our guides below: How to Use Binance How to Use Coinbase Pro (formerly GDAX) To get started with crypto futures trading, you’ll need to open an account on one of these exchanges.

Once your account is set up, it will be time to purchase some Bitcoin or Ethereum. These cryptocurrencies will serve as the base currency that you trade against other cryptos.

In other words, if you want to buy Litecoin (LTC), then you would need some Bitcoin or Ethereum first – which is why we recommend buying them from Coinbase or Binance in advance before starting your journey into crypto futures trading!

Tools to use today to get started.

I suggest trying out a site called 99Bitcoins to help you learn Bitcoin basics.

This is not a sponsored post, I just think they offer a lot of value to those who are just getting started with Bitcoin and cryptocurrency. They also have a free newsletter worth subscribing to here.

Getting familiar with basic crypto concepts will help you get up to speed quickly! Once you’ve got that down, start using trading tools like Bitfinex or Kraken so you can practice your skills as much as possible and learn from experience.

Both Bitfinex and Kraken allow you to trade on margin so it can be an incredibly valuable learning tool! The key is to stay focused, committed, and never stop practicing! If you want to dig deeper into futures trading specifically, check out CME Group's website.

They have a ton of resources for beginners including articles, videos, live webinars, and more! You can even download their mobile app to use while you're on the go. It's all about staying informed and being dedicated—but remember: don't lose money in the process :)

 

Conclusion

With every market, there are ways to profit. To succeed, it's important to have a plan and stick to it. While futures trading can be highly profitable, it's not easy money.

Many people enter into futures trading and lose big. Before you get started, consider what you hope to achieve in your investment plan and how much time you want to dedicate to learning about crypto futures trading.

Once you understand what you want out of your strategy and how much time you want to invest, let's get started!

Here are some resources that I used when I first began learning about crypto futures trading Cryptocurrency Investing for Dummies, The Bitcoin Beginner Book, Crypto Market Technical Analysis:

How to Identify Trends and Make Money in Bitcoin, Ethereum, Litecoin, and Other Cryptocurrencies, The 21st Century Investor, Understanding Options (8th Edition), Bloomberg Businessweek: The Complete Guide to Options Trading.

There are plenty of other great resources out there but these helped me tremendously as I was getting started. Good luck on your journey towards becoming a professional crypto futures trader!