Do you think crypto Futures is gambling? Why?
June 16th, 2022

On this question, I would like to bring up my opinion, I don't think crypto futures are gambling.

In the traditional financial market, futures are a very common derivative. In 1848, the first modern futures exchange was born in Chicago, USA, which determined the standard futures contract model, and gradually improved the margin system. Futures are now nearly 200 years history, long enough to prove they have some value.

For many people, the first impression of futures is high leverage. Yes, futures have the characteristic of high leverage, and many people intend to invest futures with all of their assets. But with the high volatility of the crypto market, many people have experienced liquidation, so they think it is like gambling.

But in fact, the futures is innocent, and the correct way should be to use it rationally. Futures boast many unique advantages when compared with spot trading. For instance, futures investors don't have to rely on price surges to earn profits. Instead, they can choose to go long or short and get profit from market swings, so that they can make earnings despite bearish market factors. In a bear market, although the spot market will be depressed, the futures market is still active, so everyone says that there is no bear market in futures. With futures, investors can seek profits through more types of investment strategy.

In addition, by using futures, investors can use limited funds to hedge risks. For example, miners are worried that the price of the crypto will drop in the future, which will lead to a decrease in the value of the Bitcoin mined in the future. Then he can choose to short BTC to obtain the income and make up for the loss due to price drop.

As of futures, we should invest with the correct mindset, adjust the leverage according to our actual capital level, and don't all in because of market sentiment. Only in this way we can prevent risks and prevent futures become gambling products.

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