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Best Crypto Futures Trading Tools in 2024

Written by Charles

Written by:

Charles

Twi

Hey there Experience: None

Expert reviewed

Expert Reviewed

This article has been reviewed by crypto market experts at SCM to ensure all the content, sources, and claims adhere to the highest standards of accuracy and reliability.

Last Updated on June 6, 2024

Crypto futures trading has become an essential part of the digital asset market. It allows traders to hedge against volatility or speculate on price movements.

In 2024, the significance of these financial instruments is more pronounced than ever. This is as the market continues to mature and attract a broader audience.

As you explore the world of crypto futures, various trading tools enhance decision-making and streamline the trading process.

Precision and speed are paramount in the fast-paced realm of cryptocurrency futures.

You benefit from real-time market quotes, advanced analysis tools, and various risk management features to stay on top of your trades.

Platforms that offer these services have evolved to meet trader demand for efficiency and comprehensive market access. They allow you to take short or long positions confidently.

Reliable tools are crucial to navigating the complexities of crypto futures. They can make a significant difference in your trading outcomes.

Best Crypto Futures Trading Tools

#1. Trading Platforms

crypto exchange

Selecting a suitable platform is crucial for your trading success when engaging in crypto futures trading.

  • Binance Futures is a popular choice, offering a comprehensive range of trading options and tools for beginners and experienced traders.
  • Coinbase Advanced is tailored for U.S. traders. This platform offers a secure environment with a robust infrastructure, making it a reliable option for your trading needs.
  • PrimeXBT is known for its versatility. It allows for crypto futures and copy trading and caters to various trading strategies.
  • MEXC Exchange offers a competitive edge with up to 200x leverage on futures trades. This attracts traders looking for higher risk-reward scenarios.

Each platform comes with its own set of tools and fee structures. For instance, some may offer lower fees for market makers, incentivizing liquidity provision.

It’s vital to assess the leverage options, fee schedules, and the variety of contracts available before committing to a platform. Here is a quick overview:

Platform Leverage Maker Fee Taker Fee Contracts Offered
Binance High Low Low Multiple Types
Coinbase Moderate Variable Variable Standard Futures
PrimeXBT High Low Low Multiple Types
MEXC Up to 200x 0.00% 0.01% Wide Range

Your choice will depend on the specific features that match your trading strategy and experience level. Ensure you perform adequate due diligence and understand the futures trading risks before starting.

#2. Portfolio Management

Maintaining a clear portfolio overview when diving into crypto futures trading is crucial. Portfolio management tools enable you to monitor and manage your investments with precision.

  • Blockfolio allows you to keep a real-time tab on your assets. With Blockfolio, you can get detailed price information and market trends for each currency in your portfolio.
  • CoinTracking elevates your trading experience by extensively analyzing your transactions and tax implications. It’s a robust system for tracking gains, losses, and the overall performance of your investments.

By utilizing these applications, you’re equipped to make well-informed trading decisions. An organized portfolio gives you the insights necessary to adapt strategies and capitalize on market movements.

Remember to verify connectivity with your exchanges and wallets, ensuring seamless integration for real-time updates.

Key Features to Consider:

  • Real-time data synchronization: Ensures the latest data from exchanges and wallets.
  • Comprehensive analytics: Grasp the performance of your investments at a glance.
  • Tax reporting: Simplify your tax filings with detailed reports on gains and losses.

#3. Trading Bots

trading bots

When you venture into crypto futures trading, you’ll encounter various tools to enhance your trading efficiency. Among these, trading bots stand out for their ability to automate the trading process.

Characteristics of Trading Bots:

  • Automated Execution: Trading bots operate based on specific algorithms and can carry out trades on your behalf. The criteria are set in advance and can include factors like price movements, technical indicators, or time.
  • Consistency: Unlike manual trading, bots can follow your strategy to the letter without emotions or fatigue, ensuring a consistent trading approach.

Popular Trading Bots:

  • 3Commas offers both novice and experienced traders tools, including automated trading strategies.
  • Cryptohopper allows you to create custom or follow established market strategies and signals.

Advantages:

  • Time-Saving: With bots, you can manage your trades 24/7 without being physically present to execute orders.
  • Backtesting: Many bots offer backtesting features, enabling you to test your strategy using historical data before risking natural capital.
  • Diverse Strategies: From arbitrage to market following, you can employ various strategies that suit your trading style.

Considerations:

  • Risk: Ensure you understand the risks involved, as bots can incur losses if not properly monitored.
  • Costs: Some bots come with subscription fees, though many offer free trials to help you decide if they fit your trading needs.

#4. Charting Tools

tradingview chart

In crypto futures trading, charting tools are an indispensable resource. These applications present various technical analysis features that allow you to accurately assess market trends and potential trade opportunities.

TradingView stands out with its robust functionality. It offers a comprehensive suite of drawing tools, technical indicators, and customizable charts.

Whether a novice or an experienced trader, you’ll appreciate its user-friendly interface, real-time data, and collaboration features.

Coinigy provides another layer of sophistication to your trading experience, delivering an all-encompassing platform that merges trading and charting.

It supports multiple exchanges, streamlines trade execution, and furnishes you with high-definition charts. Along with its web-based utility, Coinigy ensures that liquidity is never a concern.

When considering charting tools, examine the following features that cater to your trading needs:

  • User Interface: A clear and intuitive design is vital for quick navigation and operation.
  • Exchange Integration: Connectivity with various exchanges widens your access to trading pairs and market data.
  • Technical Indicators: A comprehensive set of indicators aids in better prediction of market movements.
  • Customization: The ability to personalize charts allows for a tailored analysis approach.

#5. Tax Reporting Software

crypto tax software

Staying compliant with tax regulations is essential when engaging in crypto futures trading. Fortunately, software tools are designed to help you accurately report your transactions for tax purposes.

Key Features of Tax Reporting Tools:

  • Transaction Import: Seamlessly sync transactions from various exchanges and wallets.
  • Capital Gains Calculation: Automatically calculate your capital gains and losses.
  • Tax Form Generation: Generate the necessary tax documents for filing.

Popular Software Solutions:

  • TokenTax offers a comprehensive platform that deals with various types of crypto transactions.
  • CoinLedger (formerly known as CryptoTrader.Tax) provides an easy interface for managing crypto taxes.

How to Use:

  1. Connect Your Exchanges: Link the software with your exchange accounts and wallets.
  2. Review Transactions: Ensure all your trades, including futures, are correctly imported.
  3. Generate Reports: Obtain detailed reports to understand your tax liability.

#6. Technical Analysis Tools

When trading crypto futures, you rely on technical analysis tools to interpret market trends and forecast potential price movements. These tools offer valuable insights through the statistical analysis of market activity, such as price movements and volume.

Key Indicators:

  • Moving Averages (MA): Utilize simple (SMA) and exponential (EMA) moving averages to gauge the direction of the market trend.
  • Relative Strength Index (RSI): Assesses whether a cryptocurrency is overbought or oversold, indicating possible reversals.
  • Bollinger Bands: Measure market volatility and provide insights into overbought or oversold conditions.

Pattern Recognition:

  • Trend Lines: Enable you to visualize support and resistance levels and identify the direction of market momentum.
  • Candlestick Patterns: Decode market sentiment and predict potential reversals by analyzing patterns like Doji, Hammer, or Bullish Engulfing.

Notable Tools:

  • TradingView offers comprehensive charting tools and a range of indicators for in-depth market analysis.
  • CoinCodex provides technical analysis tools tailored for cryptocurrency markets.
Feature TradingView CoinCodex
Chart Types Multiple Basic
Indicators Extensive Limited
User Interface Intuitive User-Friendly
Community Large, active Moderate

#7. Strategic Trading Tools

When navigating the intricacies of crypto futures trading, harnessing strategic trading tools can significantly enhance your decision-making process.

These tools are engineered precisely to cater to novice and veteran traders. They equip you with capabilities that can improve your trading outcomes.

Backtesting is a cornerstone feature. It allows you to test your strategies against historical market data. This insight will enable you to refine and adjust your approaches without assuming real-world risk.

Consider utilizing the following strategic tools:

  • Grid Trading: Automate buy and sell orders based on a predefined grid of price levels. This optimizes your trade execution and capitalizes on market volatility.
  • TWAP (Time-Weighted Average Price): This tool helps execute large orders by averaging the price over a specified time, reducing market impact.
  • Advanced TP/SL (Take Profit/Stop Loss): Set detailed conditions for closing positions. This facilitates risk management and protects your investments from sudden market movements.
  • Multi-Symbols Trading Page: Monitor and manage multiple futures contracts simultaneously to diversify your portfolio effectively.

Essential Trading Tools Quick Reference:

Feature Description Benefit
Grid Trading Sets buy/sell orders on a price grid Capitalizes on market swings
TWAP Spreads large orders over time Minimizes price slippage
Advanced TP/SL Conditional closing of positions Enhances risk management
Multi-Symbols Track and trade various contracts at once Aids in portfolio diversification

You empower yourself with advanced capabilities by integrating these strategic tools into your trading arsenal. Stay informed and continuously adapt your strategies to align with market conditions and your personal trading goals.

#8. Leverage Options

You can use leverage to enhance your trading power when engaging in crypto futures trading. Leveraged trading allows you to ‘borrow’ capital to increase market exposure beyond your initial investment. Here’s what you need to know:

Trading Platforms:

  • MEXC offers leveraged trading up to 200x with a low commission rate of 0.02%.
  • Coinbase presents U.S. traders with regulated leveraged futures products.
  • Other platforms provide varying degrees of leverage, with many supporting a broad range of cryptocurrencies.

Risk Management:
Remember, while leverage can magnify your profits, it equally increases your risk of losses. It’s paramount to employ diligent risk management strategies.

Important Considerations:

  • Limits: Different platforms set different leverage limits.
  • Liquidity: High trading volumes indicate good liquidity, reducing slippage during trade execution.
  • Fees: Leverage fees can vary and should be factored into trading costs.

Products:

  • Futures
  • Options
  • Multiplier Tokens

Supported Cryptocurrencies:

  • Over 600 cryptocurrencies are available for leveraged trading on various platforms. These typically include primary tokens like Bitcoin and Ethereum.

Leverage can be a double-edged sword; use it cautiously and always be aware of the terms your chosen trading platform provides.

#9. Diverse Futures Products

In cryptocurrency trading, you can access a wide array of futures products. These products allow you to strategize and hedge your investments in the volatile crypto market.

Types of Futures Contracts:

  • Perpetual Contracts: These contracts don’t expire, offering continuous trading opportunities.
  • Options: These provide you the right, but not the obligation, to buy or sell at a predetermined price.

Popular Cryptocurrencies for Futures Trading:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Dogecoin (DOGE)
  • Solana (SOL)
  • Polygon (MATIC)

Different platforms might offer additional cryptocurrencies for futures trading, expanding your opportunities for diversification.

Traders can select from micro-sized contracts to complete contracts based on their capital investment and risk appetite. More minor contracts like micro-minis are beautiful for individuals looking for lower-risk exposure.

Contract Features:

  • Competitive Pricing: This helps you manage costs effectively.
  • Variety of Pairs: Opportunity to trade different crypto/fiat or crypto/crypto pairings.
  • Leverage Options: Adjust your leverage to match your risk tolerance.

It would be best to approach futures trading clearly and understand the market dynamics and risks involved.

Analytical solid tools and real-time data from the trading platforms support your decision-making. Consider factors like liquidity, platform security, and transaction costs when selecting a futures product and platform.

#10. Copy Trading

Copy trading in crypto futures is an innovative tool that enables you to mirror seasoned traders’ trading activities. It can be particularly beneficial if you are new to the futures market or lack the time to analyze markets.

Platforms Offering Copy Trading:

  • eToro: Renowned for its user-friendly interface and a large selection of traders to follow.
  • OKX: Offers copy trading tools with instant confirmation of copied positions.
  • Binance: Provides strategic tools like grid trading for automated buying and selling.

Key Considerations:

  1. Past Performance: Look for traders with a solid track record in crypto futures.
  2. Strategy Alignment: Ensure that the trading strategies of the copied trader align with your risk appetite.
  3. Risk Management: Choose traders who prioritize risk management in their trading activities.

How to Start Copy Trading:

  • Select a Platform: Choose a platform based on your needs and the quality of available traders.
  • Choose a Trader: Assess available traders’ history and strategies.
  • Set Parameters: Define the amount you’re willing to allocate and set limits to manage risk.
  • Monitor: Monitor the performance and adjust your settings as necessary.

Remember, while copy trading can offer a passive trading experience, remaining aware of the inherent risks is essential.

The success of the traders you copy is not guaranteed to continue, and your capital is at risk. Always perform due diligence before engaging in copy trading.

#11.  Risk Management Features

When trading crypto futures, utilizing risk management features is crucial to safeguard your capital and enhance decision-making. Here’s a breakdown of essential tools you should be familiar with:

Stop-loss Orders:
This tool allows you to set a specific price at which your position will automatically close to prevent further losses. Using stop-loss orders to mitigate risk is vital, especially in the volatile crypto market.

Example:

  • Set a stop-loss at 10% below the purchase price to limit your loss on a trade.

Position Sizing Calculators:
These calculators help you determine the appropriate amount of capital to allocate to a trade, balancing risk while aiming for potential returns.

How to Use:

  1. Enter your account balance.
  2. Specify the risk percentage per trade.
  3. The calculator suggests a position size.

Leverage Management:
While leverage can amplify profits, it also increases risk. Manage your leverage carefully to avoid significant losses.

Recommendation:

  • As a rule of thumb, use lower leverage for high-volatility assets.

Diversification Tools:
Diversifying your portfolio can spread risk across various instruments rather than concentrating it in a single trade.

Tips:

  • Diversifying across different cryptocurrencies.
  • Consider various futures contracts with differing expiration dates.

You must incorporate these features into your trading strategy to responsibly navigate the intricacies of the crypto futures market.

#12. Mobile Apps

When selecting a crypto futures trading tool, it’s crucial to consider the availability and efficiency of mobile applications. These apps allow you to manage your portfolio and react to market changes promptly, no matter where you are.

Delta.App

  • Availability: iOS, Android
  • Features: Tracks investments across 300+ exchanges and 7,000+ cryptocurrencies, personalized notifications, and watchlists.
  • Utility: Simplifies portfolio management and provides prompt updates.

Kraken

  • Platform Specialization: Spot trading and futures markets
  • Leverage: Up to 50x
  • Mobile Support: Robust app to trade the futures markets for 95 cryptocurrencies.
  • Utility: Offers sophisticated trading tools on mobile for advanced trading strategies.

Many apps provide a range of features, from real-time market trends and financial updates to comprehensive ProChart tools for technical analysis.

Ensure your chosen app supports the specific cryptocurrencies you’re interested in, whether they are more common assets like Bitcoin and Ethereum or alternatives like Dogecoin and Aave.

Security, user-friendliness, and customer support are integral to an excellent mobile trading experience.

Apps should ideally offer secure logins, intuitive interfaces, and 24/7 support to address any issues you may encounter. Prioritize platforms that are committed to these aspects to enhance your trading endeavors.

Frequently Asked Questions

When approaching crypto futures trading, equipping yourself with the right tools is essential for success. The tools detailed below can significantly enhance your ability to analyze market trends and make informed trades.

What are the most recommended tools for crypto futures trading?

For successful crypto futures trading, consider platforms like TradeStation Futures, which provide advanced trading tools and reduced brokerage fees.

Other notable mentions include interactive charting tools, real-time market data analytics, and risk management software to help you navigate the volatile crypto market.

What are the top free tools available for analyzing cryptocurrency futures markets?

Free tools such as essential charting software, cryptocurrency market aggregators, and social sentiment trackers are invaluable for analyzing futures markets.

These tools typically offer insights into market trends, price action, and the overall market mood, assisting you in making data-driven decisions without a financial outlay.

What should I look for when trading futures in a crypto market analysis app?

When choosing a market analysis app, focus on real-time data accuracy, comprehensive technical analysis tools, and a user-friendly interface.

An excellent app should also have features like price alerts, futures contract price resets, and hourly payment mechanisms, as highlighted by the CME Group and other trading platforms.

These capabilities allow meticulous strategy planning and timely trade execution in the fast-paced crypto futures space.

Conclusion

Your journey in crypto futures trading relies heavily on the tools at your disposal, each tailored for a distinct function within the trading landscape.

The power of these tools is undeniable, offering you the capability to strategize effectively and react to market trends with informed precision.

Responsibility in their application is paramount.

  • Risk Management: Utilize these tools to limit potential losses, especially when engaging with leveraged positions.
  • Strategic Trading: Implement tools that align with your trading plan for hedging or speculation.
  • Continuous Learning: Stay informed about tool updates and market shifts to maintain a competitive edge.
Functionality Importance Risk Factor
Market Analysis High Low
Leverage Controls Critical High
Risk Assessment Essential Medium

It’s emphasized that the speculative nature of cryptocurrency futures trading amplifies risks, notably when leverage is a factor. Your success hinges not just on the tools you hold but also on the wisdom of their use.

A disciplined approach that harmonizes strategic planning with vigilant risk management can sustain your trading endeavors.

Remember, these instruments are as helpful as they are potent, and balancing prudence with ambition could be the key to your trading objectives.

It’s not merely a game of chance; it’s a calculated pursuit that necessitates a firm grip on both the tools and the tumultuous rhythms of the crypto markets.

About the Authors

Hey there Experience: None