Kick off your trading journey with binance futures

Fellow Binancians,

Binance Futures users will be able to use BNB to pay for trading fees on the Binance Futures platform starting from 2019/12/13 12:00 PM (UTC). Users will receive a 10% discount on standard trading fees when they use BNB to pay for these fees.

Users will need to transfer BNB from their exchange wallet to their futures wallet to receive the 10% discount. Please refer here on how to transfer your BNB to your futures wallet.

The 50% discount on Binance Futures trading fees promotion will end at 2019/12/13 11:59 AM (UTC). Please refer here for Binance Futures’ fee schedule.

BNB transferred to futures wallets will only be able to be used for trading fee discounts. It cannot be used for liquidation fee and as collateral.
BNB balances in the Binance Futures wallet will be included in each user’s daily BNB balance calculations for Binance Launchpad and other daily calculations as mentioned in the Daily BNB Balance Calculation Mechanism Update .

Risk warning: Buying, selling, holding and partaking in futures trading of cryptocurrencies are activities that are subject to high market risk. The volatile and unpredictable nature of the price of cryptocurrencies may result in significant loss. Binance is not responsible for any loss that you may incur from price fluctuations when you buy, sell, hold and leverage cryptocurrencies.

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Binance Futures Beginner’s Guide & Exchange Review: How to Trade

Last Updated Nov 18, 2020 @ 12:05

Binance recently launched a futures trading platform – Binance Futures – that allows traders to use leverage and to open both short and long positions. After our first look and test positions, we can say that the platform is very similar to that of Binance’s spot exchange, which makes the transition very easy. The user experience is just as smooth, and trading is relatively simple.

50 USDT Free Voucher (Exclusive to Cryptopotato)

How to receive a 50 USDT free voucher and 10% off fees?

First, you will need to sign-up using this link, which uses the unique sign-up code: Cryptopotato

The 50 USDT bonus will be granted once 500 USDT or equivalent trading volume is reached. Aside from the 50 USDT bonus for the first 200 users only, using the code will grant you immediate 10% off fees for the first month. You will also enjoy a 20% off fees for Binance spot exchange (full terms).

What if I already have a Binance Spot account?

You can still enjoy the bonus. However, you will need to navigate to Binance Futures and insert the code Cryptopotato upon your first use of the Futures platform. Here is a screenshot:

Use our code to receive a 10% discount on Binance Futures fees

Binance Futures

Binance-branded product
High trading volume and liquidity
Industry-Leading Security (SAFU insurance fund)

You can only trade by depositing USDT
Relies on the controversial Tether (USDT) stablecoin

At the time of this writing, the daily volume of the Bitcoin futures platform had exceeded the volume of the spot BTC/USDT trading pair on the primary Binance platform. This shows that the platform is growing relatively quickly, and it might be a matter of time until Binance leads the way in the area of Bitcoin leveraged trading.

“We do have plans to introduce more features and more trading pairs, but they are still under development,” Aaron Gong, Head of Binance Futures told CryptoPotato. “We will introduce a cross collateral feature in the future, as such tokens can be used instead of just Tether.”

Why Trade on Binance Futures?

There are a few reasons why one might consider trading Bitcoin futures:

Shorting Bitcoin and other cryptos: Hedge your positions and improve your risk management to protect your crypto portfolio during bear markets
Opening a leveraged position: trade without really owning the funds
No need to keep large amounts of BTC on the exchange because of the leverage

Bitcoin futures on Binance can be traded with up to 125x leverage. However, you should keep in mind that margin trading is not recommended for beginners since it involves a significant amount of risk, and you can lose your capital a lot quicker than you otherwise would. Hence, margin trading is usually not recommended for beginners, but rather for experienced traders with extensive knowledge on the matter.

Now that we’ve gone through some of the basics, let’s dive deeper into Bitcoin futures on Binance and how to trade them.

What Are Bitcoin Futures?

Bitcoin futures allow the trader to buy or sell Bitcoin at a predetermined price at some point in the future (“settlement”). The buyer of the contract is obligated to buy the asset when the contract expires, whereas the seller is obligated to provide it.

Binance employs so-called perpetual contracts, which are a bit different from traditional futures contracts. These sorts of contracts don’t have a preset expiry and settlement date. They are anchored to the spot index price, and the trader can terminate them whenever he or she wants to.

In other words, when purchasing or selling a perpetual contract, the trader is not obligated to sell or buy the asset at a preset date. Instead, they can close their position whenever they want to.

Bitcoin futures on Binance are traded against Tether (USDT).

During June 2020, Binance Futures had introduced quarterly futures contracts for the BTC/USD trading pairs. The maximum leverage for the quarterly futures is 125X. Unlike the perpetual contracts, the quarterly futures have delivery date (i.e. the quarterly futures expire every three months).

Binance Futures: Start Here

First things first: you’ll need to create a Binance account. The registration process is fairly straightforward, but it requires quite a bit of identity verification because of Binance’s KYC requirements. You can learn how to register and deposit Bitcoin in our Binance trading guide.

Once your funds are deposited, you will have to transfer them to your futures trading wallet. On the top navigation menu, there is a “Futures” button. Click on it and select the “Futures” option.

On the bottom right, right under the order book, there is a “Transfer” button. To start trading Bitcoin futures, you’ll have to transfer some USDT to your Futures account.

Doing so is pretty straightforward. Once you click the button, you will be asked how much USDT you want to transfer and from which account. Simply specify the amount and hit the “Confirm” button. The transfer happens automatically.

Leveraged Trading on Binance Futures

Binance allows traders to place trades with a leverage of up to 125x. As a matter of fact, setting your leverage is fairly simplified.

On the top left corner there is a button right next to the BTCUSDT symbol that can be clicked and it will pull up the following slider:

From here, it’s pretty straightforward. The slider can be used to set whatever leverage is preferred from 1x to 125x.

So, for example, if you decide to use 100 USDT with leverage of 100x, this will open a position worth $10,000 and you’d only have to post 100 USDT as a margin.

How to Trade Bitcoin Futures on Binance Futures

Trading Bitcoin futures on Binance is simple. The platform only allows trading Bitcoin/USDT with up to 125x leverage, and up to 75x for other cryptocurrencies. In contrast, other margin exchanges allow leverage of up to 100x.

There are four types of orders that you can place on the platform:

Limit Order
Market Order
Stop-Limit Order
Take-Profit-Limit Order

Opening a Short or Long Position

Limit Orders

Limit orders are used when you want to buy at a specific price.

To set a limit order, you’ll have to specify the price at which you want to buy or sell. On the Order Quantity tab, input the amount of BTC that you wish to buy. In this case, we’ve set a target price of $8,400 and a quantity of 1 BTC. So as soon as Bitcoin’s price reaches $8,400, we will have an order to buy/long. Note below that the margin required for this order is only 420 USDT because we’ve used a 20x leverage.

As soon as you hit the “Buy/Long” button, your position will be opened. Below, we will show you where to monitor it and how to close it.

Market Orders

The most basic order type, market orders are used to buy Bitcoin at a spot price.

All that has to be entered is the order quantity. Again, note that the margin required is 20 times less than the actual value of the order.

Stop-Limit Orders

These are typically used as a stop-loss mechanism, but not always.

The stop price is the price at which your order will become a regular limit order. The price tab indicates when you want to buy.

Imagine that you expect Bitcoin to face significant resistance at $8,600, and if it breaks above it, that will give confirmation that the trend is bullish. You would want to set your stop price at $8,600, because as soon as it’s hit, your stop-limit order will be converted to a regular limit order to buy at $8,650. You can also use this as a stop-loss mechanism to reduce your level of risk.

Take-Profit-Limit Orders

As the name suggests, this is mainly used to set the price at which you wish to collect your profits.

Your trigger price establishes the price at which your order will be placed in the order book. The price tab shows the price at which you want to buy.

Closing a position

As soon as your position is opened, you will be able to monitor its status. For the sake of this guide, we’ve opened a long Bitcoin position using a standard market order, as shown in the example above. Here’s where we can track it:

As you can see, we’ve bought 0.1 BTC at an entry price of $8,273. In other words, we have opened a long position of 0.1 BTC. Since it is 20x leveraged, the required margin on this trade is only around 43 USDT.

If you wish to close your position, you have two options. A market close is instant, and you close at the best available spot price. In contrast, a limit close lets you specify the price at which you would like to close the position.

As you can see, the position tracker also contains a liquidation price. This is the price that, if reached, will see your position liquidated due to insufficient margin. Keep in mind that the entire amount in your futures wallet is used as collateral. Hence, if the price doesn’t go in the direction of your trade, the platform will use your remaining capital as collateral.

As soon as you hit the “Market” button, your position will be closed and you will see the funds return to your margin account.

Which Cryptocurrencies Does Binance Futures Support?

As of writing these lines, Binance Futures promised and did extend the variety of trading pairs. Besides Bitcoin (BTC), the platform offers up to 75X leverage trading of the following pairs:

Ethereum (ETH) / USDT
Ripple (XRP) / USDT
Binance Coin (BNB) / USDT
Bitcoin Cash (BCH) / USDT
Cardano (ADA) / USDT
Stellar (XLM) / USDT
Tron (TRX) / USDT
EOS / USDT
Litecoin (LTC) / USDT
Ethereum Classic (ETC) / USDT
Chainlink (Link) / USDT
Monero (XMR) / USDT
Dash / USDT
Zcash (ZEC) / USDT
Tezos (XTZ) / USDT
More pairs against USDT include Cosmos (ATOM), Ontology (ONT), Brave (BAT), VeChain (VET), IOST, QTUM, ALGO, THETA, ZRX & NEO.
New pairs added June/July 2020: ZIL, KNC, COMP, SXP, and OMG.
New trading pairs added Oct/Nov 2020: MATIC, SRM, UNI, SUSHI, REM, BEL, HNT, OCEAN, KSM, RSR, LRC, FIL, NEAR, TOMO, ENJ, FLM, FTM, AVAX.

What are Binance Futures’ Trading Fees?

As a limited time offer, CryptoPotato and Binance offer new users 20% off on all trading fees using this link to register a new account. Afterward, use ‘cryptopotato’ as your referral code to get 10% on Binance Futures fees for the first 30 days of trading (limited offer).

One of the more crucial things to consider when selecting a futures exchange is its trading fees. This is especially important if you are day trading, as the fees can pile up fairly quickly.

As is almost always the case, Binance has done a great job of visualizing its fee structure.

Long story short, the default level (VIP 0) carries 0.02% maker fees and 0.04% taker fees. In order to enjoy reduced fees, Binance requires you to both hold its native Binance Coin (BNB) and maintain a decent amount of turnover volume (in BTC).

All of the VIP benefits of the spot market exchange apply to the futures market. What is more, the fees are generally lower than those on the spot market. However, the volume requirements for each of the VIP tiers are 5 times larger than those on the spot market because of the leverage.

Security of the Binance Futures Exchange

Needless to say, Binance is probably the most secure cryptocurrency exchange out there. Naturally, it’s not immune to hackers, but the company is doing a splendid job of keeping users’ funds protected.

Even if the exchange were to get hacked, which it has in the past, Binance has introduced a so-called SAFU fund. Beginning last July 14th, the exchange has allocated 10% of all trading fees into its Secure Assets Fund for Users (SAFU) in order to offer additional protection to users in extreme cases. Those funds are stored in a separate cold wallet.

Moreover, Binance has a very rigorous KYC process that applies to its futures exchange platform.

Binance Futures’ Support

Unsurprisingly, the Binance Futures exchange shares the primary spot exchange’s emphasis on support, and users can rely on a team of experienced and highly adequate international support staff.

SPECIAL OFFER (Sponsored) Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

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Kick off your trading journey with binance futures

We know it can be a little daunting when you’re new. This guide is here to gently introduce you to some of the key concepts you need to kick-start your journey into the world of blockchain tech.

Without further ado, let’s dive down the rabbit hole.

Quick access

What’s a cryptocurrency?

A cryptocurrency is just like a digital form of cash. You can use it to pay friends for your share of the bar tab, buy that new pair of socks you’ve been eyeing up 👀, or book flights ✈️ and hotels 🏨 for your next holiday. Because cryptocurrency is digital, it can also be sent to friends and family anywhere in the world.

You see, traditional online payment gateways are owned by organizations. They hold your money for you, and you need to ask them to transfer it on your behalf when you want to spend it.

In cryptocurrencies, there isn’t an organization. You, your friends, and thousands of others can act as your own banks by running free software. Your computer connects with other people’s computers, meaning you communicate directly – no middlemen required!

To use cryptocurrency, you don’t need to sign up for a website with an email address and password. You can download a wide variety of apps onto your smartphone to begin sending and receiving within minutes.

Why do they call it cryptocurrency?

There’s no need to understand all this – applications you use will do all the heavy lifting. You won’t even know what’s going on under the hood.

If you’re interested in that kind of thing, though, we’ve got a few articles for you:

So, this magical internet money isn’t owned by anyone and uses cryptography to secure the system. But you’ve already got apps for paying people – why should you care?

Permissionless

No one can stop you from using cryptocurrency. Centralized payment services, on the other hand, can freeze accounts or prevent transactions from being made.

Censorship-resistant

Because of the way the network is designed, it’s virtually impossible for hackers or other attackers to shut it down.

A cheap and fast payment method

When you make a transaction to someone at the other side of the world, your money can be with them within seconds – at a fraction of the cost of an international wire transfer.

Who invented Bitcoin?

Bitcoin provided the foundation for many other cryptocurrencies. Some were based on the same software, while others took a very different approach. Ok, but what’s the difference between all the cryptocurrencies?

To even make a list of all the different cryptocurrencies would take us weeks. Some are faster than others, some are more private, some are more secure, and some are more programmable.

Before investing your money into a particular project, make sure you do your due diligence.

Cryptocurrencies aren’t all the same!

If you’re interested in learning about some of the different coins and tokens, we’ve compiled a list of guides on Binance Academy:

What Is Bitcoin? (the king of cryptocurrencies)
What Is Ethereum? (the distributed computer)
What Is BNB? (the original exchange coin)
A Beginner’s Guide to Monero (for the privacy aficionados)

What is blockchain?

Don’t be spooked by the technobabble that people use to describe «blockchain.» A blockchain is just a database. It isn’t a particularly sophisticated one, either — you could create it in a spreadsheet with minimal effort.

And that’s it! Since each fingerprint points back to the last one, you end up with a chain of blocks. Or — as the cool kids like to call it — a blockchain.

Is that it?

Underwhelmed? That’s fair. The innovation here isn’t some cumbersome alternative to Google Sheets. It’s that everyone can download blocks from other people on the network to build identical copies of the blockchain on their computers. That’s what the software we mentioned earlier does.

Suppose that you and your friends Alice, Bob, Carol, and Dan are running the software. You might say «I want to send five coins to Bob.» So you send that instruction to everyone else, but the coins aren’t sent to Bob immediately.

Carol might decide at the same time to send Alice five coins. She also sends her instruction out to the network. At any time, a participant can gather up the pending instructions to create a block.

If anyone can make a block, what stops them from cheating?

It probably seems very attractive to you to create a block that says «Bob pays me a million coins.» Or to start buying Lamborghinis and fur coats from Carol by making transactions with funds you don’t own.

Free blockchain knowledge!

Did you know all that already, and just want to learn how to trade or invest? Let’s get onto that next.

Trading

Trading generally implies a shorter-term approach to generating profit. Traders may jump in and out of positions all the time. But how do they know when to get in and out?

One of the most common ways to make sense of the cryptocurrency market is through an approach called technical analysis (TA). Technical analysts look at price history, charts, and other types of market data to find bets that have a good chance of returning a profit.

You must be dying to get started right away. And technically, you could. It’s that easy! But, like most things worth pursuing, trading is hard! It would take us a long time to talk about all that you need to keep in mind.

Learn the special craft of chart mastery!

We have some articles to get you started:

Luckily, we’ve also created an extensive guide for new crypto traders! It contains pretty much everything (and probably more) that you need to know about trading crypto:

Once you can quote that article after being woken up at five in the morning, you could move on to other related topics:

Investing

Investors look for long-term bets based on the fundamentals of an investment. For example, how much profit a company is making. While cryptocurrencies are a new and unique type of assets, they can also be viewed through a similar lens.

The onboarding process is smooth and quick. You don’t have to jump in with large amounts, either. You could start with as little as 15 dollars! So, what is some mind candy that you should be looking into related to crypto investing?

Crypto Investing 101

If you want to invest in cryptocurrencies, these articles will help you get started:

Passive income

So far, we’ve talked about trading and investing. These methods generally require a lot of time, which not everyone has. If you’re one of those busy but efficient people, we have some other options for you.

As Warren Buffett, one of the most successful investors of all time, said: «If you don’t find a way to make money while you sleep, you will work until you die.»

Why isn’t everyone doing this? Well, they probably don’t know. But now you do!

One of the ways to earn passive income is by securely lending your holdings to other people. In exchange for the opportunity to borrow your funds, they’ll pay interest to you.

What is staking?

In simple terms, staking means getting rewards for locking up coins. So, if you invest in a coin that supports staking, you could build up a larger holding over time. Read more about in these articles:

Privacy and Security

We’re a cryptocurrency website, but we also ❤️ privacy and security topics – and you should, too!

The digital age brought with it some serious innovation. Your fridge can text you when you forget to close the door, you can summon your car from a smartphone app, and it looks like you’ll soon be receiving mail by drone.

Protect yourself with knowledge

Here are some articles that make good starting points:

Well, that about brings us up to speed!

Hopefully you can leave this guide with a better understanding of cryptocurrency and how it works. On Binance Academy, you’ll find a huge variety of articles, ranging from beginner’s guides to overviews of more advanced topics.

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