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Author: Admin | 2025-04-28
Use the borrowed money to buy crypto. For going short: sell the borrowed cryptoasset. In contrast, futures contracts have both these features built in their design.Cryptocurrency futures are superior to margin trading across all dimensions:Higher leverage: Maximum leverage allowed in crypto futures contracts tends to be much higher than the leverage allowed in margin trading. For example, on Delta, one can trade Bitcoin with up to 100x leverage. But in Bitcoin margin trading, leverage is typically capped at 5x.Higher liquidity: Borrow markets are inherently hard to build and tend to have limited liquidity. This in turn impacts the liquidity of margin trading. Crypto futures markets being free of this limitation tend to be highly liquid and are usually bigger than spot markets.Higher flexibility: Margin trading facility is available only on top 2-3 cryptocurrencies such as Bitcoin and Ether. But liquid futures markets are available for a wide range of cryptocurrencies. For example, it is not possible to trade XLM on margin, but XLM can be traded via futures on Delta.Bitcoin Futures and Other Cryptocurrency FuturesWhen two parties enter into a futures contract, they agree to buy/ sell an asset or security at a pre-fixed price on a selected date in the future. Crypto futures have Bitcoin or altcoins (e.g. BNB, LEO, Stellar Lumens) as the underlying.The price of a crypto futures changes linearly with the price of the underlying cryptocurrency. Consider trading a Bitcoin futures contract. If the Bitcoin price moves up by 10%, ceteris paribus the price of Bitcoin futures will also move by 10%. This feature makes trading Bitcoin futures a good alternative to trading Bitcoin directly. The same applied to futures contracts which have other cryptos like Ether, XRP and Tezos. Moreover, crypto futures come up: (a) in-built leverage, (b) flexibility of going long or shorting and (c) low transaction costs.Crypto Futures trading on Delta: Delta currently has futures on Bitcoin (BTC) and 13 leading altcoins. Ether (ETH), Ripple (XRP), Stellar Lumens (XLM), Binance Coin (BNB), UNUS SED LEO (LEO), Litecoin (LTC), Tezos (XTZ), ATOM, Bitcoin Cash (BCH), Bitcoin Cash SV (BSV), NEO, Monero (XMR) and Basic
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