BingX, one of the leading exchanges by trading volume, offers various ways of making money in crypto. One of them is futures trading, in which traders place bets on the future prices of their favorite coins.
Do you wish to trade futures on BingX? If so, we recommend reading this guide, as we will show how to get started.
How to Start Trading Futures on BingX
Here are the steps you need to follow to begin trading derivatives on the BingX exchange:
Create an Account
Before BingX lets you access its futures market, you must register an account. The registration process is relatively straightforward. Firstly, download the BingX mobile app from Google’s Play Store or Apple’s App Store. Upon installation, hit the ‘Sign Up’ button and provide your phone number or email address. You must also create a strong password before moving to the next step, which involves completing the Know-Your-Customer (KYC) checks.
Like other regulated crypto exchanges, BingX implements KYC policies to help block illegal transactions. That said, users must upload their government-issued identification documents (IDs) for their trading accounts to be verified.
Navigate Around the BingX Trading Platform
Upon completing identity verification, familiarizing yourself with BingX’s features before trading futures is advisable. For instance, visit the exchange’s academy to learn how to activate futures trading.
After that, select the ‘Derivatives’ option on the homepage to activate your futures trading account. This is done by answering all the displayed questions correctly. Furthermore, you need to read the user agreement and tick the checkbox to agree.
Once you have provided correct answers, BingX will activate your futures trading account, allowing you to access supported derivative contracts.
Trade on Demo Mode
With BingX, you don’t have to trade with real money immediately. Instead, you can switch your futures account to demo mode and test your strategy and platform features using virtual funds.
To enter your first market position, select the derivative contract you wish to trade, for example, BTC/USDT. Upon analyzing its price chart, select ‘Long’ if you believe the price will rise or ‘Short’ if you think it will fall.
Next, specify your ideal stop loss and take profit levels, which are triggered automatically when the price touches them. Also, choose the level of leverage you wish to use in your trades. This decision is based on your risk tolerance level. BingX allows traders to apply leverage of up to 130x.
While high leverage amplifies your potential profits, it poses several risks. For instance, if you use 75x leverage on BTC/USDT and Bitcoin drops by just 0.9%, you will likely get liquidated. On the other hand, if you choose 1x leverage, then you will be liquidated if Bitcoin’s price drops by at least 50%.
Transfer Funds to Your Futures Account
If you become confident in your strategy, consider trading with real money. You can fund your futures account from an external source or funding wallet.
Why BingX?
BingX has become a top choice among margin traders for numerous reasons, including:
A wide range of trading pairs: The exchange supports over 200 derivative contracts, allowing users to diversify their portfolios.
User-friendly UI: Unlike most of its competitors, BingX offers a simple user interface, enabling traders to navigate the platform easily. This makes it ideal for beginners.
Copy trading support: If you want to trade futures but lack the required skills to execute profitable trades, BingX lets you follow the strategies of experienced traders via its copy trading feature.
Multilingual support: BingX lowers language barriers by providing its trading platform in various languages, such as Vietnamese, English, Italian, and French.
Advanced trading tools: BingX offers sophisticated trading tools to allow traders to conduct in-depth market analysis.
BingX Academy: This section features articles, guides, and tutorials that cover a wide range of topics, from market trends to technical analysis. Beginners are advised to visit BingX Academy to learn more about crypto trading before placing trades.
Conclusion
Futures trading promises massive returns. However, if users do not apply proper risk management, they could lose all their money instantly. With that said, trade with funds you do not mind losing.
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