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How to Invest in Bitcoin & Crypto Futures – The Ultimate Guide for Beginners

Bitcoin futures refer to a bitcoin contract to be settled in the future using the US dollar. The Bitcoin Reference Rate (BRR) could be used as a reference rate of a single bitcoin price to the US dollar. Also, BTC futures may refer to block trades that feature a minimum threshold of 5 contracts. The contract gives investors a chance to invest in bitcoins and also access the bitcoin markets and hedges.

The cryptocurrency space is conversant with futures trading supported by Chicago Mercantile Exchange (CBOE) and Chicago Board Options Exchange (CME) futures exchanges. The exchanges have also listed cash -settle bitcoin trading products.  Besides CBOE and CME, the other bitcoin futures trading platforms include BTCC, BitMex, ByBit, Mitrade, etc.

Ideally, Bitcoin and Crypto futures may also refer to ways to trade the crypto asset’s price action. The Bitcoin future trades have become too common and are currently dominating the world’s mainstream financial world. The future contract may contain one Bitcoin and may be settled in the exchange auction. Such future contracts may be bought and sold within the agreed time frame, with the demand determining the underlying assets’ price.

How the futures work

The trader can lose or earn money through speculation. They will make money by buying and holding the underlying asset. The contracts can be bought multiple times before the contract expires. The trader needs to constantly adapt to the changing market sentiments before buying and selling the assets.

A trader can sell (go short) Bitcoin futures if they anticipate the price of the Crypto will fall soon. They may also sell them, hoping to purchase the contract once again when the price reaches the lowest point.

The strategies to make money by investing in bitcoins

There are many strategies you can use to make money in biotins. Here are the most recommended and used strategies.

Learn how to speculate

Speculating will help you understand the market. It will also help you gather the information you can use to make decisions. For instance, if the data collected shows that there will be a drop in the value of bitcoins, you will need to open a short contract. Conversely, if you have reasons to believe that the value will fall, opening a long contract will help you make money.

 Short positions

The strategy entails opening short positions when you anticipate that the price of bitcoins will be falling. In this case, a trader borrows bitcoins through the leveraged trades and sells all their holdings. As soon as the price drops below a predetermined price, they exit the market. They then buy the bitcoins at a lower price, repay their lenders, and keep the profit.  

Long positions

The trader decides to lock in Bitcoins at the current price because there are indications that the price will be rising. So you open a contract at the current price, but when the future date you chose arrives, you sell the crypto and keep the profit.

Risk management

It is another popular strategy used by miners to lock their bitcoins to reduce the risks associated with market volatility. They lock their profits by validating transactions. So miners will sell bitcoins at a premium using future contracts.

Reasons why you should consider investing in Bitcoins

  1. Various countries have approved the use of Bitcoins

No company or government claims to own bitcoins. But various countries such as the United States, the United Kingdom, Mexico, Morocco, and South Africa have approved Bitcoins as a digital currency.

  1. Bitcoin is the backbone of cryptocurrencies.

Although there are many other cryptocurrencies, bitcoin is undisputed and the most preferred digital currency. It is widely used to buy Gold and services online.

  1. The price is expected to continue growing.

As the currency gets more approval from different countries, its value will continue to grow. Also, due to the rising demand, the price is expected to continue increasing and guarantee investors good profits.

  1. Investing in the currency is easy

Investing in bitcoins is easy and does not require special skills. Just choose the correct platform and conveniently invest in bitcoins. Your work will be to monitor and watch your wealth grow.

  1. Payments are easy as no third parties are involved.

No third parties are involved in bitcoin transactions. It is only the sender and the receivers that will get to know the transaction.  So it is safe. 


Go for a free account on BTCC and try your first bitcoin futures trading. BTCC is a 9-year-old crypto exchange that provides cryptocurrency futures trading where a total of 98 billion USDT contracts being traded in the last 30 days. In addition to the English market, BTCC is now available in Korean (비트 코인 선물), Japanese (ビットコイン先物取引), and Vietnamese (Hợp đồng tương lai Bitcoi).  


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