The Top 7 Reasons You Should Trade Bitcoin Futures

There are many ways to trade Bitcoin, but the best for active traders is likely Bitcoin Futures. This post will give you the key advantages of trading Bitcoin Futures.

Please note that Crypto-ML is not affiliated with any of the exchanges or 3rd-party companies listed in this post. Perform due diligence and invest responsibly.

1. Short Selling

The top advantage the futures market gives traders is the ability to seamlessly go long or short on trades. This means you can make money when the market goes up or when it goes down.

Many of us remember the spectacular bull runs Bitcoin has had. But it has also had similarly large downturns.

Rather than only profiting during up markets–or losing all profits when the market turns–it is best to be adaptable as a trader.

This is the exact reason Crypto-ML has a Fear and Greed Index.

  • During bull markets, traders should favor long trades.
  • During bear markets, traders should favor short sell trades.
Crypto-ML Fear and Greed Index Screenshot
Screenshot of Crypto-ML Fear and Greed Index

2. Great Tools for Traders

The idea of trading stocks, futures, options, and forex has been around for a very long time. Accordingly, the tools and companies behind this industry have had decades to mature. Professional platforms and tools are readily available.

You simply cannot beat the technology, customer support, and institutional funding behind the big players in the futures market.

As an example, ThinkOrSwim is a thorough-bred trading platform with roots from 1982. The depth of tools, support, and community provided are unmatched by anything in the crypto market.

ThinkOrSwim can now be accessed by any TD Ameritrade account holder.

The Top 7 Reasons You Should Trade Bitcoin Futures 1

3. Leverage

When you buy or sell futures contracts, you do so on margin. More specifically, you put earnest money down on the contracts. This earnest money is less than the value of the contract. As such, your position is amplified. This, of course, is a double-edged sword: your gains will be bigger and your losses deeper.

But, this gives you the ability to trade as though you have a larger account value. Your money works harder with futures.

4. Customer Support

When you need help with your trading account or execution, it’s great to be able to have easy access to a knowledgeable human. Mature futures platforms often have great support and some even have local branches.

While some crypto exchanges have great support, they are indeed the exception. Whether losing deposits or taking weeks to respond, crypto exchanges have a generally poor reputation.

Additionally, companies offering futures are likely subject to considerable regulation designed to protect consumers.

5. Tax Reporting

As with item #2, the maturity of futures platforms generally means they provide superior tax planning and reporting tools. As many experienced traders know that without excellent reports, tax time can be an administrative nightmare. On the other hand, if you have a CPA-friendly report, taxes are a breeze.

Years back, despite profits, I stopped trading in the past thanks to the administrative headache of taxes. I am grateful for the excellent tax tools available today.

6. Pricing

The cost to trade futures contracts is generally very low. Each platform varies, but as an example, TD Ameritrade Pricing is currently as follows (source):

  • Futures & Options on Futures $2.25 fee per contract (plus exchange & regulatory fees). Regulatory fees are assessed by the National Futures Association (NFA) and are currently $0.01 per contract.

Using popular cryptocurrency exchanges, you’ll likely exceed that fee with any trade that is $1,000 or more. Depending on the amount you trade, this can be significantly cheaper than standard cryptocurrency exchanges.

7. Access

In many countries, the ability to trade cryptocurrency or fund accounts at cryptocurrency exchanges is limited. However, you may be able to access the futures markets and thereby take advantage of the extreme swings in Bitcoin.

Major trading companies such as E*TradeTD Ameritrade, and TradeStation offer Bitcoin Futures trading and are available in many markets worldwide.

For example, currently, in Inda, you are not allowed to access cryptocurrency exchanges. However, you may trade Bitcoin futures in India.

Exchanges to explore are,, and local futures brokers.

Get Started Trading Bitcoin Futures!

If you’re a trader looking to capitalize on the swings of cryptocurrency, futures are likely your best tool. If you’re unfamiliar with futures, take the time to familiarize yourself and understand the risks. But you can take comfort in the fact that futures trade similarly to stock and are offered on the same platforms.

So that’s it! Open a futures accounts, join, and get started.

If you want to experiment with Bitcoin Futures, you can get a free ThinkorSwim Paper Trading account.

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