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How to Make Your First Trade on Binance Futures

2022-08-05

Key Takeaways:

  • Binance Futures is the world’s leading crypto derivatives exchange, offering traders a convenient way to speculate on the price action of digital assets. 

  • Futures contracts are capital-efficient because traders get an excellent return profile without risking a significant amount of capital. 

  • Still, a robust risk management strategy is required to mitigate the high volatility in the cryptocurrency market and become a successful futures trader. 

Crypto derivatives enable traders to gain exposure to a wide range of digital assets without owning them. It allows market participants to hedge against volatility and speculate on the future value of a particular cryptocurrency. The use of leverage improves capital efficiency as investors don’t have to lock up large amounts of capital, unlike the spot markets.

Trillions of dollars are being traded every month in the cryptocurrency market, as traders reap the opportunities to make quick profits no matter the trend’s direction. Derivatives contracts enable traders to benefit from price fluctuations by going long (buying low and selling high) or shorting (selling high and buying low).

With over 500 trading pairs available on Binance Futures, the trading platform has grown to become the world’s most liquid crypto derivatives exchange, allowing users to avoid unnecessary risks. 

In the following guide, we’ll explain how you can get started with Binance Futures and join more than 29 million active traders today!

Step 1 - Sign Up for a Binance Account

If you already have a Binance account, please go to Step 2.

If you don’t have an account yet, go to Binance and click [Register] on the top right corner of the page. 

Choose to [Sign up with phone or email], [Continue with Apple], or [Continue with Google].

Select your [Country/Area of Residence] and click [Confirm]

Click [Create Personal Account], or for businesses, click [Create Entity Account].

Enter your [Email], create a strong [Password] for your Binance account, and click [Next]. You’ll be asked to enter an [Email Verification Code] and click [Submit]

Enter your [Phone Number] and click [Next]. You’ll be asked to enter a [Phone Verification Code] and click [Submit] to create your Binance account. 

Step 2 - Open a Binance Futures Account

To open a Binance Futures account, go to Binance Futures and click [Open Account]

You need to pass a quiz to activate your Binance Futures account, so click [Take Quiz] and make sure to answer all questions correctly. 

Step 3 - Verify Your Account

Please note that you must verify your identity to unlock all the fantastic features that Binance offers. 

Go to Binance, click [Profile] - [Identification].

Make sure you’ve selected your [Residential country/region] and click [Start Now]. You’ll be asked to fill in your [Personal Information], provide a [Government-Issued ID], pass the [Facial Recognition] test, submit [Proof of Address], and answer a simple [Questionnaire].

 

Step 4 - Make Your First Deposit

Before making your first trade on Binance Futures, you’d need to deposit fiat or cryptocurrencies. 

To deposit fiat, go to Binance and click [Buy Crypto] at the top left corner of the page. 

Select the [Currency] and the method of how you’d like to make your first deposit, click [Continue], and follow the instructions.

To deposit cryptocurrencies, go to Binance and click [Wallet] - [Fiat and Spot] at the top right corner of the page. 

Click [Deposit] at the top center of the page.

Select the [Coin] you’d like to deposit into your Binance account, choose between the available [Network], and follow the instructions.

Once you have sent your funds to your Binance wallet, you can check the deposit status on a blockchain explorer using the transaction ID information. Your incoming deposit will also be available under the Transaction History.

Please note that you’d have to transfer funds to your Binance Futures wallet to make your first crypto derivatives trade. 

To do so, go to Binance and click [Wallet] - [Futures].

Click [Transfer], select the [Coin], enter the [Amount] you’d like to transfer to your Binance Futures wallet, and click [Confirm].

Step 5 - Make Your First Trade

Now that you have verified your Binance account and transferred funds to your Binance Futures wallet, you’re ready to make your first trade. 

To make your first trade on Binance Futures, go to Binance Futures and choose between [USDⓈ-M] and [COIN-M] Futures Contracts. 

Learn more about USDⓈ-M and COIN-M Futures Contracts!

Select the [Futures Contract] you would like to trade at the top left side of the page.

Use the [Price Chart] to identify potential trading setups based on patterns or any technical indicator available on Binance Futures. 

Select the [Margin Mode], which will only apply to the selected Futures Contract, choose between [Cross] and [Isolated], and click [Confirm]

Learn more about Cross and Isolated Margin Mode!

Then, you need to [Adjust Leverage] and click [Confirm]

Please note that using high leverage carries high risks and shouldn’t be done without a robust risk management strategy. Learn more about leverage!

Select [Type of Order] - [Price] - [Size], toggle the [TP/SL] feature to set up your [Take Profit] and [Stop Loss] orders, and choose between a [Buy/Long] or [Sell/Short] position.

Learn more about the Type of Orders and TP/SL Orders!

Summary

Now that we’ve explained how to set up your Binance Futures account and make your first trade, why not give it a try? 

Crypto derivatives represent a fantastic financial tool to improve your capital efficiency and hedge against your positions in the spot markets. Still, implementing a proper risk management strategy is a must to avoid unnecessary risks and limit your losses when the market moves against your positions. 

If you still don’t feel confident enough to make your first trade on Binance Futures, we invite you to try our mock trading environment. Here, you can sharpen your trading skills at your own pace with zero risk, and when you feel like you’re ready, you can easily switch to live trading and enjoy the same tools from the world’s leading crypto derivatives exchange.

Read the following helpful articles for more information about Binance Futures:

Risk Warning: Digital asset prices can be volatile. The value of your investment can go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Futures trading, in particular, is subject to high market risk and price volatility. All of your margin balance may be liquidated in the event of adverse price movement. Past performance is not a reliable predictor of future performance. Before trading, you should make an independent assessment of the appropriateness of the transaction in light of your own objectives and circumstances, including the risks and potential benefits. Consult your own advisers, where appropriate. This information should not be construed as financial or investment advice. To learn more about how to protect yourself, visit our Responsible Trading page. For more information, see our Terms of Use and Risk Warning.