Top Cryptocurrency Contract Trading Exchanges for Beginners
Cryptocurrencies are volatile investments and can cause unimaginable losses when traded without an effective strategy. Many crypto traders manage the risk of crypto trading by simply buying an asset when the price drops or sell it when the price rises. However, this tactic comes with numerous downsides, including missing out on profits if the price continues to rise after you close a position. Cryptocurrency contract trading comes in handy to enable crypto traders to hedge existing spot positions without additional crypto. This allows traders to be agile and prepared for any market environment.
Cryptocurrency futures, also referred to as contract trading, allows traders to maximize their profits by utilizing the power of leverage to multiply gains and apply advanced trading strategies. Cryptocurrency contracts can also be used to speculate on the direction of the market and minimize risk. In recent years, there has been a surge in the number of crypto contract trading exchanges, each offering advanced features to appeal to crypto traders. For beginner traders, using cryptocurrency contract trading exchanges can be quite challenging, thanks to the advanced feature. However, several crypto future exchanges are well suited for beginners. Here’s an in-depth look.
- Bityard
Bityard is the world’s leading online cryptocurrency contracts exchange. The platform provides fast, easy, and safe crypto asset trading services in more than 150 countries. The platform’s mission is to simplify leveraged contract trading with a “Complex Contracts, Simple Trade” approach. While it’s relatively new (launched in 2019), the exchange has attracted novice crypto traders attributed to its ease of use. The trading interface is concise and user friendly, featuring easy to follow command prompts.
Bityard supports leveraged trading on its platform with up to 100x leverage on USDT, Bitcoin, Ethereum, Ripple(XRP), Tron(TRX), Huobi Token, EOS, and BYD Token(Bityard own token). What makes Bityard also great for beginner traders is the much lower entry barrier, i.e., only 5 USDT required for crypto trading. The platforms offer a .05% transaction fee, which is lower than the industry of .75% seen in other contract trading exchanges Deribit, Bybit, and Bitmex.
Bityard is also secure and trustworthy, making it ideal for novice and professional traders alike. The exchange is regulated and licensed under the ACRA of Singapore, the MSB of the United States by the Financial Crimes Enforcement Network-which is part of the United States Department of the Treasury, the MTR of Estonia, and the AUSTRAC of Australia. The exchange is available on both desktop and mobile platforms.
Fast trading, high security, and user-friendly interface make Bityard the best cryptocurrency contract trading exchange for beginners.
- Phemex Exchange
Launched in November 2019, Phemex Exchange is a relatively new exchange that’s built by ex-Morgan Stanley executives. The exchange provides both futures contract trading and spot trading services. It’s the first exchange in the crypto space to offer a low-cost membership model that allows users to spot trade bitcoin with zero fees.
Phemex exchange supports cryptocurrency contract trading with up to 100x leverage. The platform claims to be the fastest cryptocurrency exchange (10 x faster than traditional crypto sites) coupled with a high-efficiency order matching engine to minimize downtime and overload.
Phemex exchange is ideal for beginners thanks to the user-friendly interface coupled with simulated trading to enable new users to try out and get familiar with the exchange’s features. With simulated trading, users can conduct crypto contract trading without the fear of losing money.
Another unique aspect about Phemex exchange is the premium membership program. Users can subscribe to their monthly premium pass to access all the exchange’s services, including zero-free spot trading. Users are also allowed to create sub-accounts within an existing account for different trading strategies, i.e., long positions, short positions, and use of trading bots.
User-friendly interface, coupled with simulated trading to test out all features of the platform, makes Phemex exchange ideal for novice traders.
- Binance Exchange
Binance Exchange claims to be the world’s leading cryptocurrency exchange. This is certainly true as the exchange is one of the most popular and fastest-growing crypto exchanges on the Internet. The platform allows users to buy, sell, and trade over 200 cryptocurrencies with support for contract trading up to 125x leverage.
The exchange is suitable for both beginners and experienced crypto traders because they can choose between two user modes: classic interface and advanced interface. The classic interface is a simple and easy-to-use interface for beginners involving a quick view of the market as well as trading pairs. The advanced interface, on the other hand, is for experienced traders as they are offered access to advanced trading tools and charts.
Users are offered a 50% discount for using the Binance Coin (BNB) on the platform, i.e., from the regular 0.1% to 0.05% in the first year. Ease of use, quick trading times, and meager fees make Binance exchange ideal for novice traders.
- Bitfinex Exchange
Founded in 2012, Bitfinex is the longest-running and most liquid major cryptocurrency exchange. The exchange is well suited for beginner and advanced traders with the option for margin trading and lending. Beginner traders will appreciate the clean UI with sufficient instructions on each page to direct new users.
The exchange offers its users a wide range of services, including advanced trading features such as customizable GUI with over 50 trading pairs and plentiful order types, including limit, market, stop-limit, trailing stop fill or kill, and scaled orders. The trading platform can be customized to access advanced charting functionality as well as API access. Other features are margin trading and funding and over-the-counter trading facility.
The platform charges a 0.1% to 0.8% transaction fees. The simple UI, complete access to different trading services, and access to advanced features make the Bitfinex Exchange an ideal crypto exchange for both novice and advanced crypto traders.
Closing Words
Cryptocurrency contract trading has gained widespread acceptability among crypto enthusiasts. Contract trading offers an effective way of maximizing profits by hedging existing spot positions without additional crypto. However, crypto contract trading can be very complicated, especially for beginners. Nonetheless, the contract trading exchanges discussed in this article streamline crypto contract trading for a simplified trading experience ideal for beginner traders. If you’re looking to step into the world of crypto contract trading, sign up in any of the above exchanges and experience contract trading in its simplest form.