Cryptocurrencies’ derivatives trading is just a way to trade crypto assets’ future price movement. Bitcoin futures are by far the most popular cryptocurrency futures, reaching on this time last year’s mainstream financial world.
What are derivatives trading?
They are an agreement to make or take delivery of a commodity or financial instrument at a fixed date.
Every contract for derivatives includes a specific amount of the commodity. In the case of Bitcoin derivatives, every futures contract includes one Bitcoin and is settled based on the Bitcoin’s auction price.
Such futures contracts (in this case, Bitcoin) can be acquired or exchanged by the seller at any moment inside the timeframe of the contract, as market supply and demand determine the contract price and the underlying commodity (Bitcoin).
Derivatives trading allows you to take futures positions, along with their risk and opportunities, without ever having to take delivery of the underlying asset.
Bitfinex platform for derivatives trading through API:
According to CryptoAPI, Bitfinex scores 91 of 100 points, making it the top exchange for derivatives trading on the planet.
With a median response time of 232.53ms globally, a minimum response time of 50.90ms and a 100% uptime in the last seven days make their platform the most effective and stable place for futures trading.
With constant development and improvement of its product, Bitfinex has taken derivatives trading seriously. Not only in marketing and propaganda matters but also in what we believe is more important, on their technology.
Bitfinex offers some unique features and an excellent documented API that results in one of the most straightforward API to use.
If you want to check their documentation, you can follow this link. If you are ready to make a guess and you want to start trading on Bitfinex, you can follow this link.
Are futures the future?
While traditional markets are the most used form of trading at press time, futures or derivatives are making noise around the crypto space. The opportunity to guess and make a bet while making a TA is an exciting feature for expert traders.
Derivatives trading isn’t safer than traditional trading. You can be one of the best trading analysts, still, you can get a wrong guess as the price depends on many other factors besides a sophisticated TA.