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How much money do you need to invest in Bitcoin contracts Bitco
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Date:2024-08-10 19:00:17 Channel:Build Read:
The four most famous international exchanges:
Binance INTL
OKX INTL
Gate.io INTL
Huobi INTL
China Line APP DL China Line APP DL
China Line APP DL
China Line APP DL
Note: The above exchange logo is the official website registration link, and the text is the APP download link.
Speaking of Bitcoin, this concept was proposed by Satoshi Nakamoto in 2009. Bitcoin can be said to be the first digital currency and the first application of blockchain technology. Therefore, many investors have studied Bitcoin. However, most investors only know more about Bitcoin spot. Most investors still know nothing about Bitcoin contracts. Even the question of how much money to invest in Bitcoin contracts is not very clear. So, how much money should be invested in Bitcoin contracts? The following coin circle editor will tell you how much money should be invested in Bitcoin contracts at least?
How much money should be invested in Bitcoin contracts at least?
Usually, the minimum amount depends on the platform on which you will buy cryptocurrency. For example, if you buy through Coinbase, you will buy Bitcoin from 2 pounds. That being said, it is not wise to invest such a small amount. The reason for investing a small amount in cryptocurrency is that the exchange platform you use will charge you transaction fees. If your investment is not large enough, these fees may have a negative impact on it. For this reason, it is strongly recommended that you invest at least around 42 pounds. This will be a good starting point.
The amount of investment capital you should spend in this market should be between 5% and 35%. For beginners in cryptocurrency trading, 5% is recommended because it is safe. You don’t want to invest a lot of money, but you’re also not very sure about how to navigate the trading environment. Based on this, if you are new to cryptocurrencies or you are not willing to lose a lot of money, there is a 30% risk. Remember that there is a lot of guesswork involved in this investment, so you should be careful when making decisions. For people who can afford to take losses and continue to invest more, they can invest even 50% of their capital. Before investing, it is important to understand the market factors first, as these factors contribute greatly to the amount of returns you will receive. At the end of the day, the decision is in your hands.
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Bitcoin contract rules
1. Trading time
Contract trading is 24/7, and trading will only be interrupted during the settlement or delivery period at 16:00 (UTC+8) every Friday. In the last 10 minutes before delivery, contracts can only be closed, not opened.
2. Trading type
Trading types are divided into two categories, opening and closing. Opening and closing are divided into two directions: buying and selling:
Buying to open long (bullish) means that when the user is bullish or bullish on the index, a certain number of new contracts are bought. Performing the "buy to open long" operation will increase the long position after successful matching.
Selling to close long (long order closing) means that the user is no longer bullish on the future index market and the sold contract is offset with the current buy contract to exit the market. Performing the "sell to close long" operation will reduce the long position after successful matching.
Selling to open short (bearish) means that when the user is bearish or bearish on the index, a certain number of new contracts are sold. Perform the "sell to open short" operation, and the short position will be increased after the match is successful.
Buy to close short (close short position) means that the user is no longer bearish on the future index market and buys back the contract, which is offset by the current sell contract and exits the market. Perform the "buy to close short" operation, and the short position will be reduced after the match is successful.
3. Order method
Limit price commission: The user needs to specify the price and quantity of the order. Limit price commission can be used for opening and closing positions.
Counterparty price order: If the user chooses to place an order at the counterparty price, the user can only enter the order quantity and cannot enter the order price.
The system will read the latest counterparty price at the moment of receiving this commission (if the user buys, the counterparty price is the sell 1 price; if it is a sell, the counterparty price is the buy 1 price), and issue a limit price commission for this counterparty price.
4. Position
After the user opens a position and completes the transaction, he has a position, and the positions in the same direction of the same contract will be merged. In a contract account, there can be a maximum of 6 positions, namely, long positions of the current week contract, short positions of the current week contract, long positions of the next week contract, short positions of the next week contract, long positions of the quarterly contract, and short positions of the quarterly contract.
5. Order restrictions
The platform will limit the number of positions held by a single user in a certain period of contracts and the number of orders for opening/closing a single position to prevent users from manipulating the market.
Through the above introduction, I believe that everyone has already understood the question of how much money to invest in Bitcoin contracts at least. The editor of the currency circle reminds investors that when trading Bitcoin contracts, the most taboo is to be indecisive. Therefore, if the investor's trend chart and technical operation system do not show that the market fluctuations are reversing, investors do not have to buy or sell with the majority, but should stick to it. When the market trend is not clear, it is best to wait and see.
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