How to Trade Futures on BloFin – A Complete Beginner’s Guide
Blockchain technology offers numerous ways to make money online, with futures trading being one of them. While crypto futures trading can seem complicated, especially for beginners, selecting the right platform may simplify the process.
This guide teaches how to trade futures on BloFin, a top crypto exchange for derivatives products.
Trading Crypto Futures on BloFin’s Web App
Here is how to start trading futures on BloFin’s easy-to-navigate web app.
Sign Up
Visit Blofin.com and click ‘Sign Up” on the homepage. Next, feed your email and enter the OTP code sent to the provided address. Once this is done, Blofin will give you access to your new trading account.
Complete KYC
While BloFin allows you to trade spot markets without completing the Know Your Customer, you must verify your identity to trade futures. To do so, provide proof of address and a government-issued identification document. The BloFin team will check and verify your documents within an hour.
Fund Your BloFin Account
To begin trading futures, you need to deposit funds into your futures account from either your spot or funding wallet. Ensure to deposit at least $10.
Go to BloFin’s Trading Interface
Once the funds reach your futures account, visit BloFin’s trading interface and select the perpetual futures pair you want to trade. The trading pairs are found in various groups, including RWA, Hot Pairs, and meme coins, among others.
Adjust Leverage
After picking a trading pair, adjust leverage to a level that matches your risk tolerance. BloFin offers two types of leverage: isolated margin and cross margin. The maximum leverage is 150x.
Place an Order
Once you have adjusted leverage, it’s time to place a long (buy) or short (sell) order. You can do so by clicking the “Long” or “Short” button. After the order is executed, monitor its performance under the “Open Orders” section.
Utilize Risk Management Tools
Trading crypto futures is risky. Therefore, you must implement proper risk management to protect your capital in case your bet doesn’t go as expected. Some of the risk management measures you can use on BloFin include setting stop-loss and take-profit levels.
Withdraw Profits
Withdrawing profits whenever you close a winning trade is advisable. On BloFin, you must transfer your profits to your spot or funding wallet before withdrawing them to an external destination.
Trading Crypto Futures on BloFin’s Mobile App
The process of trading crypto futures on BloFin’s mobile and web apps is almost the same. The only difference is that you can find more order types on the mobile app than on the web app. As of August 2024, the BloFin mobile app is available on the Play Store and App Store.
Why Use BloFin to Trade Futures?
Trading futures on BloFin comes with several benefits, including:
1. High leverage: As mentioned earlier, you can open trades with leverage of up to 150x.
2. Availability of risk management tools: To preserve your capital, BloFin lets you use risk management tools like stop-loss and trailing stops.
3. Access to analytical tools: BloFin offers effective analytical tools to ensure that users conduct proper technical analysis before placing orders.
4. Use of trading bots: You can automate your futures trading strategy on BloFin, so you don’t have to monitor the markets throughout.
5. Access to numerous futures contracts: BloFin has listed over 60 futures contracts for users to trade.
6. Unlike most crypto exchanges, BloFin offers perpetual contracts with no expiration dates.
7. Reasonable trading fees: BloFin’s fee structure can be considered reasonable, given that the platform charges a maker and a taker fee of 0.02% and 0.06%, respectively.
8. Stringent security measures: BloFin adopts tight security protocols to guard user funds. For example, funds are kept in cold wallets to shield them from online attacks.
Disadvantages of BloFin
1. The available trading bots support a few strategies.
2. BloFin supports a limited number of fiat currencies.
Conclusion
BloFin strives to offer a conducive environment for futures trading, from prioritizing security to giving access to risk management tools. Nonetheless, crypto futures remain risky, so use money you don’t mind losing.
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