US oil prices turned negative for the first time in history on Monday amid the deepest fall in demand in 25 years. WTI crude oil plunged and reached -$40 per barrel because of the May contracts expired in Tuesday – traders were expected to run out of places to store it within the next two weeks, meaning they were paying buyers who have space to take barrels off their hands.
Though Trump’s latest threats against Iran and stimulus packages are indeed creating short-term speculative waves in the oil market, oil futures need physical delivery and lack of oil storage space, which makes oil futures trading much more risky.
Bitcoin Futures is Most Profitable Among Commodity Futures Trading
As a commodity, bitcoin doesn’t need space to store it or physical delivery issues like oil. Futures markets with physical delivery require traders to come up with the goods if they own a contract going into the expiration date. But in bitcoin derivatives market, no physical delivery is required. And as perpetual contracts, there is no expired date either.
Bitcoin Perpetual contracts have gained popularity as crypto derivatives. These contracts allow users to hold the contracts as long as they want if they bet on the right market direction. Compared to the traditional futures market and spot trade, Bitcoin perpetual contract give traders more chance to profit from the market fluctuations.
3 Tips to make profits in BTC perpetual contracts.
- Judge the Support and Resistance in a short period
Find the support and resistance level with trend line. Go short BTC when the price gets close to the resistance level, while go long if it is near the support level.
- Invest small margin at the beginning
You cannot always make accurate prediction, so it’s suggested that start an initial position with small margin. In case the market goes against your prediction, you can add more fund in and wait for the market reversal.
- Use Stop Loss & Take Profit
Since it is impossible for you to stare at the chart for 24 hours, it’s necessary to set stop loss and take profit to lower the risks and lock in profits if there is great volatility.
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Get 100% BTC bonus when finished deposit in Bexplus. Each user can get a maximum of 10 free BTC at one-time deposit. Deposit 10 BTC, you will get 20 BTC credited in your account, which can increase your margin rate as well.
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