Last Updated: May 20, 2025, 12:00 IST
The 24/7 World of Crypto Markets: A Deep Dive into Futures Trading
Crypto: Always Open for Business
Unlike regular markets which have closing times and weekends off, crypto markets are all the time on, offering non-stop motion.
Bitcoin Futures: The Rising Star
Bitcoin Futures are grabbing attention because of their high liquidity and the growing interest from major institutions. As the crypto space keeps evolving, Futures trading is becoming a necessary tool for those wanting to ride the waves of price changes or hedge their bets smartly.
What Makes Crypto Futures Tick?
Expert Insight by Paras Malhotra, Head – Trade, Custody, and Business Operations at CoinDCX:
Futures within the crypto world aren’t nearly holding an asset; they’re about anticipating its price moves. These instruments offer leverage, risk management, and short-selling, very like traditional futures, but with the added perk of crypto’s inherent flexibility.
Understanding Leverage with an Example
Imagine an investor with $100 able to bet on Bitcoin’s future. By using 10x leverage, they will control a $1,000 position. This mixture of their very own money and funds borrowed from the exchange can magnify each profits and risks. So, managing such positions correctly is crucial.
Technical Tools for the Informed Trader
As Bitcoin Futures gain traction, knowing learn how to read charts and patterns becomes vital, aiding in making informed decisions and managing risks effectively.
Why Equity Investors Are Looking at Crypto
In India, equity traders accustomed to Futures and Options are beginning to see the appeal of crypto derivatives. The similarities between the 2, like the power to go long or short and hedge positions, are drawing experienced investors to explore this parallel market.
Perpetual Contracts: A Unique Feature
Unlike traditional futures, crypto offers perpetual contracts with no expiry dates. This allows traders to maintain positions so long as they meet funding and margin requirements, offering greater flexibility.
Around-the-Clock Opportunities
Crypto’s 24/7 nature lets traders react to global events in real-time, even when traditional markets are closed, providing more possibilities to capitalize on market movements.
New Developments: INR Margining
Traders can now use Indian Rupees as collateral, trading pairs like BTC-USDT directly while not having to convert to stablecoins, simplifying the method considerably.
The Double-Edged Sword of Leverage
While leverage can amplify gains, it could actually also increase losses. Indian exchanges offer a spread from cautious 1x to an adventurous 100x. However, risk management stays key to sustain success on this volatile environment.
Institutional Involvement: A Game Changer
Institutional players are adding credibility and liquidity to the crypto market. Recent data shows significant Bitcoin holdings by public corporations, bolstering confidence amongst traders and marking Bitcoin as a strategic reserve asset.
Authored by Paras Malhotra, Head – Trade, Custody, and Business Operations at CoinDCX
The opinions shared are those of the writer and don’t necessarily reflect the views of this publication.
About the Author: Varun Yadav
Varun Yadav is a Sub Editor at News18 Business Digital. He writes about markets, personal finance, technology, and more. He accomplished his post-graduation diploma in English Journalism from the Indian Institute.
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