Cryptocurrency Futures Trading | Beginner Level on Binance

[00:02] I hope you are all doing very well. You've probably heard . You may have heard many different things, like you can make a lot of money, you can lose a lot of money, they're risky, or they're

[00:15] the best option. Yes, opinions are quite varied. And what is the reason for this? It's due to the way we use them. If we use them incorrectly, they can obviously make us lose a lot of money and can

[00:27] risky tool, but used correctly, in my opinion, they are the best tool there is to be able to trade in the markets and they don't have to be risky. If we operate them correctly, they can greatly improve

[00:41] our operations in the markets. Even with futures contracts that we couldn't otherwise use. That's why today I'm going to show you how you can trade futures contracts, but from your cell phone, from your mobile device. I already have

[00:54] several videos on the channel explaining how to do it from the computer. However , I'm going to ask you to pay close attention. It's going to be a video that might time you watch it. Pause it, watch it once or twice until you understand what I

[01:07] 'm saying. So if you have any doubts, rest assured that it's completely normal. We're just starting out with futures contracts. You can leave your question below in the comments section

[01:19] someone else in the community who already has some we need to do, obviously, is to have a mobile phone and which is the one we are seeing on the screen. If you don't have the app

[01:34] downloaded, don't have an account created, or already have an account but haven't you can access it from the QR code that was appearing on your screen from the links I've left in the description and in the pinned comment

[01:48] below. By entering from there you will have a lot of benefits, such as commissions are very small amounts of money that the platform charges us for being able to operate in the markets. But even if it's just a little, it would be

[02:01] since it's your own money and you have to learn to take care of it. Yes, just because it's a small amount doesn't mean it should be wasted. It could be money that you can enjoy in the future with your buy yourself something nice. Once we have created the account and

[02:15] downloaded the application, we log in and something like this will appear. If you don't Light version and you have to switch to the Pro version, which you can do from the top left. We click there and see that at the bottom it says Binance

[02:28] change it to the next one. This message will appear, and perhaps you are click there and switch to Binance Pro, which is the one we're really interested in for trading futures contracts. Once we're here,

[02:42] obviously the second thing we need to be able to trade futures contracts, apart from having the account, is money. Obviously we're going to need money. We need to have a lot, we don't need to have a lot. To give you an idea,

[02:54] someone who already has $20, $50 or $100 can trade without worry. Obviously not in trade all the currencies you want or in such a comfortable way, but I would say that with $100 you can already trade quite well. Sometimes people ask me, "Can you

[03:08] trade with $3?" With money, yes, it's possible , but the truth is you're quite trades for you so you can see how it works, but you might not be able to grow your account between winning and losing. There's not much room for error if you have money between what you can

[03:23] know how to add funds to your fast for you, I might advise you to check out the playlist I These two playlists will really help you understand everything from scratch,

[03:37] including how to create an account and how to add money to it. You have one for your cell phone and one for your computer. You choose. Once we are inside our futures section down here on the right. If we press there,

[03:51] time using it, you may not see this screen, but rather a kind of questionnaire. That questionnaire, don't worry, you'll . It might not work at first, but it will work the

[04:05] market order. It's like a kind of security feature the platform has to 're doing. It's a matter of not giving it so much importance. The questionnaire is in English. The point is that if you enter any

[04:18] correct one. All you have to do is turn them all green and click the next one. Once you do that, you're all set, you can start operating normally. We made sure we were there in USDM and I'm going to explain

[04:31] now what each thing we're seeing on the screen is. Don't be alarmed if you see a lot of red and green numbers that are changing. It's all very simple. The first and most important thing is to know which pair, that is, which currencies we will be

[04:43] trading. For example, if we go up there , we see that it says BTC USDT. This means we are trading Bitcoin against the USDT currency. For those who don't know, USDT is a stablecoin that replicates the

[04:55] US dollar. Therefore, there BTC USDT. This means we are seeing the price of Bitcoin expressed in dollars. And how much is that? Well, we see it down here on right. Well, that's the price of Bitcoin, which

[05:07] is constantly changing and which we can trade to make money in the futures market. And one very important detail that I don't want to overlook before teaching you how to enter the futures market is how they differ

[05:19] first and foremost, when we trade futures contracts we are not buying or selling a cryptocurrency, but rather we are betting that the price will go up or that the price will go down. And the word may

[05:31] sound very strong, gambling is like a casino. And the truth is that we could say yes, or we could say no. Nobody ever knows 100% whether it will go up or down, much less in a very short period. Obviously we can

[05:43] do analyses to increase the probability of our prediction, but in exact science it is impossible to be right 100% of the time. Therefore, it is very, very important that you accept that at some point you will have to

[05:56] close at a loss. Yes. Let's not always try to accumulate profits, accumulate profits and never close a losing trade. I'm letting you know right now that this can give you before you start thinking about the future. Yes, nobody wins 100% of the

[06:10] time and nobody ever loses 100% of the time. Now, having said that we cryptocurrency, so we couldn't own Bitcoin or anything, but price will go up or down, what's the next most important thing? Well, in

[06:24] the price goes up or down. In other words, if Bitcoin goes from 110,000 to 100,000, I can make money from that price difference. We can trade short, trade downwards, or trade short. Any of

[06:39] are the correct way to say that we're going to be making money when the the price to go up and we want to make money when the price goes up, it means going in on the upside. Yes, any of the

[06:54] occasion. And finally, the biggest difference is that you can use leverage. Leverage is something that allows us to trade with larger amounts of money than we currently have. For example, if I have $100, I

[07:08] can open positions of up to $1,000. I'm going to achieve that with 10x leverage. Something very important, yes, this is a belief that many people have, and that is that they are lending us money, and no, nobody is

[07:20] lending us money. So how do we open $1,000 positions if we only have $100? Of course, a position means we're already in the market, that is, we 're already winning or losing. That's a position. We are positioned

[07:32] within a price range in the market. So how can we have positions our capital allows? Well, that's thanks to leverage. They are not are doing is risking more of our capital in exchange for opening

[07:46] larger positions. For example, if I have $100 and trade at 10x, I can open a position of up to $1,000. Because? Because 100 * 10 equals 1000. So, that going to show you an example now. Let's say I opened that

[07:59] $1,000 position when Bitcoin was at $100,000 and I went long, meaning that the price was going to if the price increased. Let's say that after I entered, the price of Bitcoin rose to $110,000. It went up 10%. If I had

[08:13] entered the normal market with my $100, now I had $110, I would have only earned $10. In this case, since I leveraged myself by 10, but the price went up 10%, I had a position of 1000 and now that 10% would be on the 1000 that

[08:27] I started as a position and not on the 100 that I have of margin or collateral, however you want to call it. Therefore, I earned $100. Yes, look, I risked $100 and won $100 with that trade. It was a 100% profit on my

[08:43] initial capital. It was very, very positive. So, where's the risk in this? Because not everything is rosy. Obviously, leverage has a downside. Although they are not lending us money, our position risk is increasing

[08:55] . Where? Well, if I entered at 100,000 with $100 leveraged by 10, I don't need Bitcoin to drop to zero to lose that $100, but if it drops 10% to 90,000 I will be losing my $100. Therefore, I am

[09:09] risking more of my capital in exchange for potentially multiplying our gains or our losses, but we can never lose more than the margin we put in. Having clarified all that, which I think is very

[09:22] cell phone screen again. The first thing we need to do up here is make sure it's in isolation, okay? We're going to press there and put it in cross formation? Well, in cross-checking, it takes the entire account balance as margin, that

[09:35] could potentially lose. On the other hand, if we isolate it, we will simply the money we put into that operation if it goes wrong. Yeah more, it remains separate, completely separate. Here in leverage, notice

[09:51] that we are at 10x. Leverages are these x's on the right. I can lower it or raise it exactly, or set any amount I want. In this case I always advise 5x or less. We can confirm. And in this case we're going to

[10:03] do it in 5x. There's always a debate here, and that is that obviously greater leverage will allow us to operate with smaller amounts. For example, if I use 100x leverage with $10 I can open a position of $1,000. In

[10:16] the example case, if I earn those $100, I would only be earning them with 10. spectacular. Now, what about 100x leverage? We don't need the price to drop to 90,000. If it falls to 99,000, we'll lose the $10.

[10:30] always remember, means more potential profits, but at the same time more potential risk. The higher the price, the greater the risk and the greater the reward. The lower the altitude, the lower the risk and the lower the profit. That 's the perfect balance. Therefore,

[10:43] 5x or less seems like a great starting point to me. Next, we're going to select the part that says "open" and down here where it says "market order," we're going to leave it there. If it says limit order, we 'll change it. We're going to place a market

[10:55] order so we can trade in the market in real time. In other words, so that whatever we put in it opens instantly and we don't have to wait. If for some reason they are not visible, it means a couple of things need to be changed. Some people don't

[11:07] we have to go to the three dots up there on the right, select things. For example, this one that says in position mode. I use coverage mode and many have it in unilateral mode. In unilateral mode we will

[11:20] only be able to open one long position or one short position, not both at the same same time because it serves as coverage. Then I put it in hedging mode and then we'll be able to trade both shorts and longs at the same time as we

[11:33] want. If we do that, if we put it in coverage mode, it will turn out exactly the says "available," we'll see our current balance. If you've just as zero. To add funds, notice the small

[11:46] we'll be able to send the money we have in our spot wallet to the example, I say I want to send $500 and if I click confirm transfer, it will arrive. Look, I click confirm transfers and my available balance goes up.

[12:00] that arrow to the right, I can do the opposite. I can send from the futures wallet to the spot wallet. I put in 500 again and click send transfer and that's it. I have the same balance as before. This doesn't

[12:13] internal transfers, so rest assured you can move it around freely within the system without fear of making any mistakes. Now we're going to market. However, Bitcoin is a bit expensive. If we have little money,

[12:26] Note that if we press here we can change it to either Bitcoin or USDT. If we put 0.001 we see that it will ask us for $22 down there. There are people who want to trade with $10. Well, in that case there are two

[12:40] things to do, either increase the leverage. Here we can increase it to 10x, for example. We can confirm. And if we want to open 001, this time it will ask us for less, it will ask us for $1. Increasing leverage, remember, will allow us to trade with

[12:52] at the same time we are increasing our risk. Therefore, it wouldn't be the best thing to do. That would be the best option in any case . In any case, it would be, We press there and see that we can switch to other pairs. We simply search here

[13:06] , for example, for ETH and we see that we have Ethereum USDT. We press specifications here are the same, isolated and 5x or -x. And if we want to trade here, for example, 0.001, in this case they only ask for 50

[13:21] cents, so we can trade larger amounts with much Ethereum is lower. So, look, I'm going to go up here to 0.005 005 Ethereum or I'll go down here and change it to USDT for a better reference. I say I

[13:36] a better reference. I say I want to trade $100 of USDT, which would be 0.038 Ethereum, and in return it will ask me for 19.69. Because? Because 20 * 5 = 100. The amount I want to open in the market is being divided by five due to leverage. And here we

[13:52] deciding whether the price will go up or down in order to enter the rise, we should place a long position, that is, buy the green button. And if we believe the price is going to drop, we have to put in a short position or sell the red button. Where

[14:06] the graph and we can find it up here on the right. Those are the little candles over the graph will appear where we can see the price at the top. On the right we can see the maximum it had in the last 24 hours, the minimum it had in the last

[14:20] 24 hours and how much it was moving in volume, that is, how much it was, how much people were trading it. What we are seeing here are that during that period of time the price went down and if they are in green it

[14:32] means that during that period of time the price went up. What is the . We see that it says 15 minutes is the one that is selected. Therefore, each of those Japanese candlesticks, that is, those colored stripes you see there, represents 15

[14:45] minutes of time. Japanese candles signify time and they signify prices. more complete, more detailed video, I would like you to let me know in obviously, if you've made it this far, to leave a like and a comment with a little tick

[15:00] you are still paying attention. Now, for example, if I changes, and that's because now each Japanese candlestick represents one hour. If I switch to 4 hours it looks like this, and if I switch to a day it looks like this. Each coin

[15:14] has its own unique graphic. But anyway, let's go back to 15 minutes. Here I analyze that the price is rising and we can see it with those different up? Yes, actually, up until now, it was going down, but now it's

[15:27] Therefore, if I believe it will return to this price above, the price would have to rise again, so I would have to go short. On the other hand, if I believe that since it just dropped, it is recovering a

[15:40] fall, then I would have to go short. In this case, I believe it will go increase. So what I'm going to do is go back here with this arrow over there and open a long. Therefore, I press long sign where

[15:55] I can put "don't show again" and I press confirm. And there we see that if we market where it shows us all the information we need to know how we are doing. For example, where it says "unrealized NLP," it represents the gains

[16:08] or losses that we don't have yet because we have n't closed the deal. Here we see that we are earning 5 cents. On the right we are seeing the performance, but expressed as a percentage, that is, 0.49% of our margin, which remember was

[16:21] 19.67. The margin is there. What we are seeing here is the capital that we left, we see the position size, which is $98.10, and further down we see the price at which we entered Ethereum. On the

[16:33] clearance price. That means when we're going to lose those $20 we 're risking, and Ethereum would have to reach 20.67. It would have to have a fairly abrupt drop in a very short period of time to generate that

[16:46] loss for us, that is, those $20 of loss. As we can see, the price is moving and with our $20 we are already earning 1%, or about 21 cents. We don't need we're a little leveraged. For example, if I wanted this

[16:59] profit, what I could do was press the button that says close. That's it So, I press where it says close, I click confirm and that's it, we've already taken that profit we just made. It's that easy to open a position in the

[17:13] futures market and that easy to close it. Be careful, because trades in the futures contract market , we are paying those small commissions that are very, very small. We're talking about

[17:26] 0.04% of the position size. If we go to this little book here, position history. And here we are looking at the one we just closed and precisely the profit we obtained. If we go to where it says trade history, we can

[17:40] case I paid with a coin so that they would give me a discount, but we are talking about in this case for opening $100 we were paying less than 4 cents, barely a expense for the

[17:53] 30 cents we earned. That's why I earned 23 and not 28. Now, if I want to open leisurely pace, without having to worry about when it opens or closes, we can set We select take profit and stop loss there. Take profit is taking profits and

[18:07] stop loss is cutting losses. Take profit is how much we want to earn, for example, if it reaches 2600, and stop loss, for example, if it reaches 2500. Yes, we put a long there and that's it, the order has been placed. And in this case we see

[18:21] profit take and our loss cut. It's that easy. We can go to sleep peacefully or whatever, and that order will close when certain prices are reached , whether we win or lose. If I

[18:34] in the clear. I click where it says close, confirm, and everything closes and disappears. This is a first look for new users, and as a reward, I want to give you something: in the future, new users

[18:47] find surprise boxes in the description section to open their first position in the market. Yes, I money. These will be very small positions, maybe around $6, so you can see exactly how you win and how you lose. I will leave boxes available for both

[19:02] long and short positions. And it's for first-time users, if not for everyone. If you want me to bring one so everyone can enjoy it. comments, and we'll also be giving away prizes on the Telegram channel so

[19:14] you can earn money simply by trading futures contracts with my money. It's a way of giving back to you for consuming my the links I've left below in the description and in the pinned comment, or by

[19:28] scanning the QR code on the screen. If this video was helpful, or if you'd like more advanced information, please give it a like, turn on notifications so YouTube will alert you whenever I

[19:41] upload more advanced videos. I hope you have a great day. See you. See you you have a great day. See you. See you later. Cryptotrader.