Earning income nowadays can come from anywhere. Moreover, in the era of crypto trading which is a source of income, it is also an interesting thing. In the crypto world, it is also known as futures trading. Trading futures on the Binance application can be an interesting choice for those of you who want to try your luck in the world of trading. However, before starting, it is important to understand how it works and some important tips to be able to trade wisely. Now we will discuss the basic steps and tips for beginners who want to start trading futures on Binance.
What is Futures Trading?
Futures trading is a form of trading where you enter into a contract to buy or sell an asset at a specific price in the future. On Binance, you can trade various types of futures contracts, including perpetual contracts that have no expiration date.
Steps to Start Trading Futures on Binance
Account Registration and Verification
Registration: If you don't have a Binance account yet, register via the Binance app or website. Fill in the required information and make sure to use a valid email.
Account Verification: After registration, verify your account by uploading the requested documents such as KTP or passport. This process is important for security and complying with KYC (Know Your Customer) regulations.
Deposit Funds
Once your account is verified, deposit funds into your Binance account. You can deposit cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH), or fiat currency if available in your area.
Transfer Funds to Futures Account
To start trading futures, you need to transfer funds from your main (spot) account to your futures account. In the Binance app, select the "Transfer" menu and select the amount you want to transfer.
Go to Futures Platform
In the Binance app, go to the “Futures” section. You will see a futures trading interface with charts, order book, and order panel.
Select Trading Pair
Select the trading pair you want, for example BTC/USDT. This is a popular pair for many beginner traders.
Understand the Trading Interface
Chart: Displays real-time price movements.
Order Book: Displays a list of buying and selling prices on the market.
Order Panel: Where you enter your order details, such as order type, leverage, and number of contracts.
Select Leverage
Leverage allows you to increase trading exposure with less capital. However, use leverage carefully because it can increase the potential for profit as well as the risk of loss
Make an order
Market Order: Buy or sell a futures contract at the current market price.
Limit Order: Create an order at a certain price that you want. This order will only be executed if the price reaches the level you set.
Stop-Limit Order: This order is used to limit losses or lock in profits. For example, you can set an automatic sell order if the price drops to a certain level.
Futures Trading Tips for Beginners
Start with Small Capital
As a beginner, start trading with a small capital that you are prepared to lose. This will help you learn without taking big risks.
Understand Leverage Risk
Leverage can be a double-edged sword. Use leverage that suits your risk tolerance and always be prepared for the worst.
Set Stop-Loss and Take-Profit
Always set stop-loss to limit losses and take-profit to lock in profits. Discipline in following your trading plan is very important.
Learn Technical Analysis
Learn the basics of technical analysis such as reading charts, indicators and price patterns. This will help you make better trading decisions.
Don't get carried away by emotions
Trading can be very emotional, especially when prices move quickly. Don't let emotions rule your trading decisions. Keep calm and follow your trading plan and knowledge.
Always Update Information
Follow the latest news and market developments that can influence the price of the assets you trade. Timely information can help you make better trading decisions.
By following the tutorial and tips above, you can start trading futures on Binance with more confidence and wisdom. Always remember that futures trading carries a high level of risk, so do your research and prepare yourself as best you can before jumping into it. #TipsTradingFutures
