Today, I will explain how to conduct Bitcoin contract trading through the Binance exchange via a blog post.

We will use Binance's mobile app to learn how to conduct contract trading, so please have your smartphone ready, and prepare funds on your local exchange to transfer cryptocurrency to Binance and follow the article's instructions.

Although Bitcoin's price has significantly increased compared to early days, it has also experienced countless ups and downs in the process.

In this case, if you do spot trading, you can only profit when prices rise.

Therefore, when a bear market lasts for a while, traders often face psychological pressure and cannot obtain any profits.

Even if you have deep insights into the crypto market, spot trading only makes sense when prices are rising—this ultimate meaning is actually limited.

Therefore, understanding contract trading is very helpful: you can profit by going long when prices rise and by going short when prices fall.

As long as you can judge the trend of Bitcoin prices and trade accordingly, you can still make a profit even in a down market.

So for capable investors, this trading method is actually welcomed.

So today, let's take a look at how to conduct Bitcoin contract trading.

It should be noted that cryptocurrency contract trading can only be done on overseas exchanges.

Therefore, this article will take Binance as an example for explanation.

Binance is the largest exchange in the world, ranking first in both spot and contract trading.

Users worldwide, not just in South Korea, are also using this exchange.

👉 Click here for a 20% discount on Binance trading fees

By registering a Binance account through the link above, you can not only get a discount on trading fees,

You can also participate in bonus activities based on your recharge and trading volume.

If you plan to trade long-term, make sure to refer to and take advantage of these benefits.

After clicking the link, you will be directly redirected to the registration page of Binance's official website.

To create an account, just enter your email or phone number.

After clicking the 'Next' button, you will receive a 6-digit verification code through the chosen method—

Enter the verification code and complete the registration verification.

After registration is complete, open the mobile app store, search for 'Binance', and install the Binance app.

Since contract trading requires frequent checking of positions and market prices, operating on a mobile phone is more convenient and quick.

Unless I'm doing very short-term trading, I also prefer to trade on my phone rather than sitting in front of the computer all the time.

After installing the app, log in to your account and complete the KYC identity verification process that appears first.

Due to the involvement of financial services, this verification process is relatively strict.

Please have your ID ready and follow the prompts to complete the operation.

After completing KYC verification, you can recharge to Binance and start contract trading.

First, click the 'Deposit' button in the upper right corner of the app.

When you see a page like the one on the right, click on 'Deposit Crypto.'

To transfer funds to Binance or other overseas exchanges, you need to buy cryptocurrency from your local exchange, send it to Binance, and then sell it to exchange for USDT.

Because overseas exchanges do not support direct recharge in Korean won and usage.

During the recharge process, please choose the cryptocurrency you want to send to Binance.

Typically using TRX or XRP, many people now also recharge USDT directly.

I often directly recharge Tether, or choose other currencies based on the situation.

In summary, as long as the transfer fees are low and the speed is fast, any currency can be used.

For example, if you choose TRX, Binance will generate a dedicated TRX wallet address for you—this is your recharge address.

Just send TRX from your local exchange to your Binance account TRX wallet address.

Please make sure to check if the address is correct. Although most people won't make a mistake, ensure it's definitely going to your own account.

When your cryptocurrency successfully transfers from the local exchange to Binance,

Open the Binance app and click on 'Trade' in the bottom menu.

Click on the currency name in the upper left corner, select the currency you want to receive, and sell all to exchange for USDT (Tether).

The reason for switching to USDT is that the spot and contract trading on overseas exchanges usually use USDT as the trading pair.

After completing the sale, click on 'Assets' in the bottom menu, and then click 'Transfer.'

The USDT you just obtained should be in your Spot Wallet.

To use for contract trading, you need to transfer it from the spot wallet to the futures wallet.

After USDT is transferred to the contract wallet, click on the 'Futures' button at the bottom.

Next, you can officially learn how to conduct Binance contract trading through the mobile app.

Before placing your first order, you need to set the margin mode.

Divided into Cross and Isolated.

There isn't necessarily one that is better; they each have their own characteristics,

You can choose a mode that suits your trading style.

The cross margin mode will use all the balance in your contract wallet as margin for the position;

The isolated margin mode only uses the funds allocated to that position as margin.

Next to the margin mode, you can set the leverage multiplier.

For Bitcoin, the maximum can be set to 125 times.

This means how many times the leverage you can apply to your trading funds.

For example, if using 50x leverage, the profit will be magnified by 50 times compared to 1x.

It may sound like 'not using leverage is foolish',

But don't forget, losses can also be amplified by 50 times.

Therefore, it is recommended not to blindly use high leverage and to rationally control risks.

Scroll down, and you can choose the type of order.

You mainly need to understand these two types: Limit and Market orders.

A limit order is when you input the price yourself and place the order;

A market order is executed immediately at the current market price.

Each method has its advantages, for example, limit orders can enter precisely, while market orders can quickly follow market trends.

Choose the appropriate order type based on your strategy.

Once all the above settings are complete, the last step is to choose the trading amount,

And choose to go long or short.

If you want to profit when prices rise, choose Long; if you want to profit when prices fall, choose Short.

That's all for the explanation on how to conduct contract trading on Binance.

It may seem complex, but it's actually not difficult to operate, and it's very easy to get started.

This article is explained using mainstream cryptocurrencies like Bitcoin as examples,

But other cryptocurrencies can also be used for contract trading.

Just click on the currency name in the upper left corner of the trading page, and search for the currency you want to trade.