7 reasons why you should trade crypto futures

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Traders are increasingly exploring new ways to enhance strategies and manage risk. It seems almost like a lifetime away in the fast-moving world of crypto, but when the Chicago Board Options Exchange launched Bitcoin futures in 2017, it was a groundbreaking event.

Spot trading crypto has long been the traditional method for buying and selling digital assets. However, times have changed. Traders now readily engage with complex crypto-based derivative products. Today, derivatives and futures are seen as financial opportunities rather than risky bets.
The reason is obvious. Futures trading is just… better. It offers unique advantages, enabling traders to profit in both rising and falling markets, amplify returns through leverage, and implement sophisticated risk management strategies.

In recent years, futures trading has gained traction, with volumes surpassing spot trades. As institutional investors and retail traders embrace the benefits, demand for platforms offering these advanced financial tools continues to rise.

To meet this demand, cryptocurrency trading platforms like Toobit have been at the forefront of innovation, offering a wide range of features for both new and experienced traders. From seamless automation tools to enhanced security and flexibility, Toobit continuously improves its offering for an efficient and profitable futures trading experience.

Here are seven compelling reasons why futures trading might be a smarter choice:

1. Profit in both bull and bear markets

Spot trading limits profit opportunities to rising asset prices. When the market turns bearish, traders must hold their assets and wait. Unlike spot trading—where assets are bought and sold at market price—futures allow speculation on price movements without owning the underlying asset.

Futures trading provides traders multiple ways to profit: when prices go up or down by either buying (going long) or selling (going short). Since traders don’t need to own the actual asset, they can speculate on price changes with a smaller initial investment.

If you are monitoring BTC price and ETH price, futures allow you to take advantage of market trends by going long or short on contracts, profiting regardless of price movement.

With Toobit, traders have access to over 250 futures contracts, including popular pairs like BTC/USDT and ETH/USDT, enabling them to diversify portfolios and capitalize on market trends. This broad selection makes Toobit’s futures trading especially valuable in volatile conditions.

2. Amplify your positions with leverage

Futures trading allows traders to maximize potential gains by using leverage—borrowing funds to increase exposure. Toobit offers leverage of up to 175x: with just $100, a trader can control a position worth up to $17,500.

Leverage amplifies a trader’s position, enabling them to control larger amounts with a smaller initial investment. For example, with 10x leverage, a trader can control a position worth 10 times their capital, increasing profits.

However, leverage also increases potential risk. If the market moves against a position, losses can be magnified, leading to a margin call or forced liquidation.

To help traders manage this risk, Toobit offers a range of risk management tools. These include slippage protection, ensuring orders execute at expected prices in volatile markets; stop-loss orders, automatically closing positions at predetermined loss levels; and auto-deleveraging, triggered during forced close-outs to prevent further losses.

3. Hedge against market volatility

Crypto markets are known for their volatility, with prices often experiencing rapid fluctuations. Futures contracts provide an effective way to hedge risk by allowing traders to offset potential losses in their spot holdings.

This is particularly valuable for long-term holders and institutional investors who want exposure to an asset while mitigating risk.

For example, Toobit’s Hedge Mode allows traders to simultaneously open long and short positions on the same asset. If a trader expects BTC to decline but wants to maintain a long position, they can open a short BTC futures position, reducing potential losses.

4. Unlock continuous trading with perpetual contracts

Unlike traditional futures with set expiration dates, many crypto exchanges offer perpetual contracts. These have no expiration, allowing traders to maintain positions indefinitely without worrying about contract expirations.

Perpetual contracts provide greater flexibility, enabling traders to adjust their strategies as market conditions change. They are ideal for traders who prefer to keep their positions open, ride long-term trends, or capitalize on short-term opportunities without forced liquidation.

Toobit takes it a step further by introducing Lite Perpetual contracts, designed for simplified trading. These contracts support market and trigger orders with flexible take-profit and stop-loss settings based on fixed prices or percentages.

Lite Perpetuals are tailored for traders seeking straightforward, cost-effective exposure to cryptocurrency markets, making them an excellent choice for both beginners and seasoned traders.

5. Efficient trading with smart automation tools

Futures trading requires careful strategy and timely execution, and automation plays an important role in optimizing these strategies while reducing manual intervention.

Toobit offers a range of advanced trading bots to help traders execute their strategies efficiently:

• Futures Grid Bot: Ideal for range-bound markets, automatically buying low and selling high within a set range.
• Futures DCA (Martingale) Bot: Best for trending markets, increases trade sizes after losses to improve recovery chances.

Automation tools like these help traders execute strategies consistently, whether the market is moving up, down, or sideways.

6. Higher liquidity and lower slippage

Futures markets typically offer greater liquidity than spot markets, resulting in tighter spreads and lower slippage. This is crucial for traders, especially those executing a high volume of trades, as it ensures that orders are filled quickly at favorable prices.

For high-volume traders and institutional investors, smooth order execution is essential. The added liquidity in futures markets reduces the risk of price slippage, where executed prices differ from expected prices due to insufficient market depth.

Toobit supports this by ensuring deep liquidity pools across its wide range of futures contracts by connecting to multiple liquidity providers, minimizing price discrepancies during execution. Additionally, Toobit supports high-frequency traders with advanced API access, enabling seamless, real-time execution of large volumes.

7. Advanced security and risk control

Security is a top priority for any trading platform. Futures exchanges have implemented robust measures, including two-factor authentication (2FA) for enhanced account security, cold storage solutions to safeguard user funds, and comprehensive risk management tools to protect traders from extreme volatility.

In response to evolving cyber threats, Toobit has further fortified its security infrastructure with multiple layers of protection, including Multi-Party Computation wallets and Hardware Security Modules for enhanced digital asset protection. Toobit also uses multi-signature authentication and time-delayed execution for major transactions, preventing manipulation.

Additionally, its proprietary AI-powered Bee-Safe technology actively monitors blockchain activity to detect potential threats. With 24/7 support from a dedicated Security Operations Center and partnerships with top blockchain security firms, Toobit ensures real-time response to security incidents, keeping user funds safe.

Final thoughts: Why crypto futures outperform spot trading

While spot trading remains popular, futures trading offers powerful advantages, including the ability to profit in any market condition, leverage for amplified returns, and advanced automation tools.

With features like up to 175x leverage, automated trading bots, and robust security infrastructure, platforms like Toobit provide traders with the flexibility and tools needed for more dynamic and profitable crypto trading. If you’re looking to elevate your trading to the next level, crypto futures could be your best move.

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