How will we trade in 2025?
If you have entered the crypto space, most people want to know how to make money first. At this point, there are some easy options to choose from: Spot Trading, Futures Trading, Airdrop, and Box Draws. Among these, Airdrop and Box Draws can be started with minimal crypto knowledge and gradually become more involved, but the risks and profits are also relatively low.
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Airdrop can occasionally happen when a good project gives out significant airdrops, but getting a good amount from the box draw usually requires some luck.
At this point, you can also choose from two options for those who want to invest quickly: Spot Trading and Futures Trading.
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Spot Trading is about buying cryptocurrencies you like when the price drops and selling them when the price rises to make a profit. Since it involves both time and money, you need to be careful about choosing coins and understanding when to buy and when to sell.
Futures Trading can be quite complex, even though it seems simple. You either go LONG if you expect prices to rise or SHORT if you expect prices to fall. However, many traders struggle with executing trades accurately. In this article, we will explain how to trade futures effectively.
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Responsible Trading means trading with accountability and responsibility - what does it mean?
Trading with responsibility means entering with a clear mindset rather than out of impulse, ensuring that you don't face sleepless nights due to trading losses.
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When entering a trade position, it's important to carefully analyze the market conditions and determine the best time to enter, how much profit to take, and how much loss you can tolerate. By assessing the market's volatility and preparing for potential outcomes, you can decide how much profit to aim for while minimizing losses.
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Why is responsible trading important?
The reason why this is important is that, just like taking precautions before something happens, it’s better to have a good trading setup ready than to suffer from sleepless nights after the fact.
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On Binance, there are new features added to help protect against losses related to futures trading.
To prevent traders from engaging in revenge trading when they face significant losses, Binance has introduced a feature called Cooling-Off Period. When this feature is enabled, you won't be able to trade futures for a day, allowing you to take a break before resuming trading. You can set the time to 1 day, 1 week, or 1 month based on your preference, and you can also set it to reopen at your convenience.
To use this feature, just click the settings button in Futures Trading, select Cooling Off Period, choose Disable Futures Trading Function, set a specific time, and confirm. If you want to reopen, you just need to enter the Cooling Off Period and reopen.
It’s also important to be aware of not accidentally taking a Cooling Off Period without realizing it.
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Another new feature from Binance is Price Protection. When the market is extremely volatile, the difference between Last Price and Mark Price becomes very noticeable. To avoid situations where your posted price doesn't get filled, you miss out on profits, or your losses exceed what you can bear, you should enable the Price Protection feature. In Binance Futures Trading, just click the three dots and enter Preferences to enable Price Protection.
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What is TP/SL?
Another important aspect of disciplined trading is to prepare TP (Take Profit) and SL (Stop-Loss) orders in advance. Many traders tend to forget to set TP/SL, and when prices are volatile, they often experience losses due to not having set SL properly. However, if prices do not move as expected, not having a designated profit-taking point may lead to missed opportunities, and failing to take profits at the right moment can result in losses as well. Therefore, it's essential to plan in advance how much profit and loss you are willing to accept before entering a trade position.
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What is leverage?
The next point is about taking a lot of leverage. In futures trading, you can trade by increasing the leverage on the money you have. However, taking too much leverage is not good either. When the market is extremely volatile, positions taken with a lot of leverage can lead to significant profits as well as significant losses, so it's quite risky.
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So, for those just starting to trade, instead of focusing solely on making profits based on leverage, it's better to gradually learn the principles of trading combined with proper TP/SL.
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These points are important for anyone looking to do Day Trading, and if you can keep these points in mind, you can achieve better results while trading.
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For a trader, having a Binance account link that offers a 10% discount is essential. If you don't have an account opened with that link, you should open a new account with it before starting to trade.
https://accounts.binance.com/en/register?ref=SBKZZWWJ
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Referral Code for Futures Trading: myancrypto
Referral Code for Mining Account: E381THBL