Unexpected New Social Media Futures Market!
Trading futures is pretty risky business. Futures are a derivative market where you trade the contract to buy or sell the underlying asset at a future date at a certain price. Depending on the type of market, this can be an actual date and the price is locked in and time will tell if you made a good choice or not! Of course, the trick is that you can sell your contract to others who might see it as a better investment than you... or you might need to dump it if the spot price starts to look bad in comparison to your contract price! So, when the date is a long way away... the contract and spot price can be quite different.
In the case of a perpetual market, there is no set date... and quite often the spot price and the contract price tend to track each other relatively closely... but there is often enough of a different for those who are particularly brave to try their luck! Often these Futures markets come with the option to leverage as well, in other words, you borrow to increase your position... but that comes with the risk of liquidation if your assets aren't considered adequate to cover your debts. The higher the leverage, the finer the liquidation price... If you choose to trade at 1x, then it is very similar to trading on the spot market, except that you are NOT holding the underlying asset and the settlement is usually in Bitcoin or a stablecoin instead of the underlying crypto.
Needless to say, playing with leverage is risky business... I try my luck every now and then, but I tend to find it too stressful. Plus, with the volatility of crypto in general... well, you may as well be flipping a coin. Of course, you can be quite disciplined about it, setting stop-losses and take-profits constantly... but that would make it a full time job, and whilst I am enamoured about the concept and potential of crypto and decentralisation, I'm not interested in trading at all! Plus, I'm not good at doing these quick trades... I like the slow long outlook version!
Anyway, most exchanges have a number of crypto to BTC or crypto to stablecoin futures pairings for people to choose their preferred poison. Some offer stupid amounts of leverage (don't do it...) whilst others are more conservative. Either way, it is pretty easy to make nice profits and then lose it all as soon as you get overconfident!
However, this morning, I was quite shocked and surprised to see that MXC is now offering a HIVE/USDT Futures market! I'm guessing that the sudden spike in the price of HIVE has made this an interesting proposition for them... I'm wondering if there will be enough liquidity and interest to make this a lasting thing!
As usual, MXC will try and bootstrap some liquidity by offering prizes for deposits and future trading. Well, I'm not really going to try it out... I'm a big chicken that knows their limits, but there will be always foolhardy risk takers that will take the bait. However, more importantly, this gives speculators a window into our ecosystem... and who knows where that can lead? More publicity and eyes on the ticker is not a bad thing... although, who knows how shaky the road will be if big players started rocking the boat a bit!
Anyway... just a quick short post today... I have to drive out to a concert, and also complete a Masters of Teaching assignment. I'm a bit stuck on that at the moment, writing an essay... so, I thought I would try and clear my brain by writing about something else completely! Let me see now if that idea worked out or not...
Handy Crypto Tools
Ledger Nano S/X: Keep your crypto safe and offline with the leading hardware wallet provider. Not your keys, not your crypto!
Binance: My first choice of centralised exchange, featuring a wide variety of crypto and savings products.
Kucoin: My second choice in exchanges, many tokens listed here that you can't get on Binance!
FTX: Regulated US-based exchange with some pretty interesting and useful discounts on trading and withdrawal fees for FTT holders. Decent fiat on-ramp as well!
MXC: Listings of lots of interesting tokens that are usually only available on DEXs. Avoid high gas prices!
Huobi: One of the largest exchanges in the world, some very interesting listings and early access sales through Primelist.
Gate.io: If you are after some of the weirdest and strangest tokens, this is one of the easiest off-chain places to get them!
Coinbase: If you need a regulated and safe environment to trade, this is the first exchange for most newcomers!
Crypto.com: Mixed feelings, but they have the BEST looking VISA debit card in existence! Seriously, it is beautiful!
CoinList: Access to early investor and crowdsale of vetted and reserached projects.
Cointracking: Automated or manual tracking of crypto for accounting and taxation reports.
Stoic: A USD maximisation bot trading on Binance using long-term long strategies, powered by the AI/human system of Cindicator.
StakeDAO: Decentralised pooled staking of PoS assets.
Poloniex: One of the older regulated exchanges that has come into new ownership. I used to use it quite a lot, but have since stopped.
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