Skip to content

Futures Trading Strategies That Work in 2023: Complete Guide

Futures Trading Strategies That Work in 2023: Complete Guide

Futures Trading Strategies That Work in 2023: Complete Guide

If you know what crypto trading is, you have probably heard about futures. This financial tool is offered on some large crypto exchanges, however, only experienced traders use it. The reason is the complexity of this financial instrument and its increased risks. 

Trading crypto futures can only be successful if you know how the market works and are able to analyze it from many different sides and draw a conclusion on how it will move in the future. 

The essence of trading futures is betting on the future value of an asset. However, it is not gambling and not a lottery – futures require a thorough understanding of all the aspects that can push the crypto market up or down. Based on the market assessment, a trader assumes if the price will grow or fall and bets on it by concluding a futures contract. Trading crypto futures does not mean a trader buys or sells coins immediately. Instead, one buys a contract and sells or buys coins when the contract’s date comes. 

How to Invest in Crypto Futures?

First, you need to select a trading method for this tool. There are many futures trading strategies, but we will list only the most popular:

  • Range trading
  • Long and short
  • Pullback
  • Spread.

The Best Crypto Futures Methods

We would like to discuss the long and short strategy first. It is probably the easiest strategy fr4 this type of trading. “Long” means a trader waits for the price to increase and sells his coins to receive income. “Short” means a trader believes the price will fall. He sells assets and then repurchases them at a low value. In both cases, traders make contracts where they claim the price for the asset and the date when they owe to execute obligations in the contract.

The pullback method means finding crypto price charts’ support and resistance levels. Сrypto assets always move up and down, reaching those levels. The resistance line is the mark the asset can hardly break; the support line is the level the asset hardly crosses. When the value rises, it reaches the level of resistance and can cross it and then retests the previous resistance mark, moving in the opposite direction. If the value does not drop to the previous line of resistance, that is a signal for a trader to open a “long” position.

Try these strategies on the WhiteBIT exchange.

Impact of Chinese Crypto Ban on Cryptocurrencies

Futures Trading Strategies That Work in 2023: Complete Guide