Best BTC Trading Platforms For Bitcoin Futures
Find the best platforms for Bitcoin Futures Trading at a glance:
USD, CNY, JPY
0.0 to 0.25% Security: Top Level Pro:
- High leverage
- High volume
- Low Fees, except for high leverage
- Rather not for beginners
- No fiat money transfers
Yes Security: Top level Pro:
- European Vanilla options
- Fast trading
- Liquidity issues
- No Android app
USD, CNY (China only)
Yes (Not for US) Deposits:
0.1% - 0.2% Security: Top Level Pro:
- Top level liquidity
- Advanced order types
- High withdrawal limit
- Foreign traders can have verification problems
- Chinese platform
A Futures contract is a contract between two parties, in which they agree to exchange an asset in the future at a specified price and appointed date. Such financial products are traded by firms and investors since more than 100 years. There are Futures based on more or less every big asset, be it oil, gold, steel, stocks or bonds.
Bitcoin Futures have already existed since a while. But till the end of 2017 they have only been tradable on actual Bitcoin brokers such as BitMEX (or OKcoin, which is one of the biggest Chinese Bitcoin trading platforms). As BitMEX is a platform which only supports BTC deposits, the market was only used by people for whom Bitcoin deposits were possible.
But from December 2017, Bitcoin futures will be tradable on CME (among others which are about to follow) – a leading global derivatives trading platform. This opens Bitcoin Futures trading to big institutions. This new trading opportunity could attract Wall Street companies to Bitcoin and crypto trading.
The specialty of Bitcoin Futures is that they will be traded in fiat currencies only. So there will never be an actual Bitcoin transfer between the contract parties. Firms basically place price bets on the future Bitcoin price of a certain forthcoming date, and profits or losses will be in fiat money only. That's the reason why it's now possible for institutions to participate in Bitcoin trading in general, as they are only able to trade in fiat money based markets, such as Bitcoin Futures.
What Do Bitcoin Futures Mean For Bitcoin?
The fact that Bitcoin is becoming one of those big assets can generally be seen as a sign that the world's first and largest cryptocurrency (in terms of market capitalization) has finally passed the border into beeing taken for serious by the global finance markets.
This new step in the trading world causes concerns for some people. They are worried that there will be a huge imbalance between the demand for real Bitcoin and the demand for Futures contracts. Bigger Investors which had caused much of BTC's bullrun so far could sell their enormous BTC positions as the Futures market might look easier to handle and safer and therefore more attractive to them.
Another concern is that institutional enemies of the Bitcoin technology might set large amounts into a negative price estimation (Future shorts) to influence Bitcoin's price downwards to suit their own. You can read more details about such concerns in this coindesk article.
Motivation – The Tremendous Value Of Bitcoin's Technology
Bitcoin's underlying technology and its benefits are a counterweight to such concerns because of big institutional Futures trading.
People who worry a lot about a massive negative price influence of Bitcoin Futures played by big market makers should not forget one point:
The reason why Bitcoin is something highly valuable is not only because of it's limited supply and because it beeing traded as an easy tradable asset.
The point of Bitcoin is that it brings an entire new underlying finance system which is borderless, neutral, peer-to-peer, (relatively) anonymous and instant – it's a new way to transfer value all over the world, where no bank and authority is needed anymore.
There is a lot of demand on earth for exactly this kind of technology which means so much benefits compared to the traditional banking system.
So even if Wall Street shorts Bitcoin Futures to influence the Bitcoin value to a downtrend, longterm there is still this high demand for the new neutral money system, and people have different reasons for that.
Think of people who search an investment which cannot be influenced or taken away by their government. Think of negative interest or even stealing money from citizens' bank accounts to rescue banks. Furthermore, think of BILLIONS of unbanked people on earth, in third world countries, with no bank account, who can start using cryptocurrency to finally also be able to receive and transfer value.
Billions of people on earth don't have a bank account, but many of them have a smartphone – or can at least share one within their family. The system of Bitcoin means that everybody is his own bank. The bank is replaced by the smartphone. Nothing more is needed to participate in the global neutral peer-to-peer money network which is Bitcoin.
Or think of the possibility to transfer value instantly, without waiting several business days of banks. The possibility to transfer money borderless, without needing to justify the transaction.. all those benefits will stay and let Bitcoin remain valuable.
So even if Bitcoin Futures could cause a short term price crash, the underlying basic value of the new money transfer technology will likely continue to rise in value in the longrun.
Learn more about the internet of money from great speaker Andreas Antonopolis.