How To Start Crypto Futures Trading on SunCrypto?

 Crypto futures trading provides you with this opportunity, as traders can profit from price changes and protect themselves from volatility without actually owning the asset. The crypto market offers a great opportunity to earn profits. But not everyone can invest a big amount of money to earn a good fortune, can they? But imagine if you could place a trade of ₹100000 with only ₹1000? Sounds too good to be true?

What is Crypto Futures Trading?

Crypto Futures Trading requires contracts to buy or sell a cryptocurrency at a set price on a future date. It allows traders to speculate on price movements without actually holding the underlying cryptocurrency, in contrast to spot trading, which involves the instantaneous buying and selling of assets. 

These exchange-traded contracts allow traders to profit from both rising and falling markets. Because of its adaptability, it is an effective tool for risk management and return maximisation in the erratic cryptocurrency market.

In crypto, futures trading offers a bunch of use cases, some of which include-

1. Hedging Against Volatility: By enabling traders to fix prices, crypto futures trading shields portfolios from abrupt declines in the market.
2. Speculation for Profit: In both bull and bear markets, traders utilise this feature to place bets on price movements and leverage their gains.
3. Portfolio Diversification: By allowing exposure to cryptocurrencies without actual ownership, it helps to diversify investment approaches.
4. Opportunities for Arbitrage: By using futures trading to take advantage of price differences between exchanges, traders can secure low-risk profits.
5. Risk management: By allowing profit during downturns and offsetting spot market losses, this short-selling feature helps traders manage risk.

 

Key Terminologies in Crypto Futures Trading?

Before going to the core of crypto futures trading, one needs to understand all the key terms that will be used. These are:

1. Leverage: Leverage is like a credit, which increases trading power. For example, if you take 10x leverage, ₹1000 will become ₹10,000, which multiplies the potential profit and loss.

2. Margin Type: Traders use margin as security for leveraged positions. Types include:

• • Isolated Margin: The amount of money put in a trade is fixed by the isolated margin, so the maximum risk is set.
  • Cross Margin: All available funds are used, which makes trading easier but poses the risk of losing the entire balance.

3. Market Orders: They help to ultimately execute the trade in the market. Types include:

• • Market Order: Placing a market order means that you buy or sell right away at the existing prices.
  • Limit Order: It allows you to decide the price you want to buy/sell before it is finalized in a trade.
  • Stop Market Order: It will place a buy/sell order at the market price as soon as the stop price is hit.
  • Stop Limit Order: It triggers a limit order when the stop price is hit, and is executed when the specified price is reached.

4. Liquidation: It occurs when a position’s losses exhaust the margin, forcing closure to prevent further debt, often at a loss.

5. Funding Rate: For long and short positions in futures, funding rates balance perpetual contracts by charging fees between long and short positions, ensuring market stability.

6. Maker Fee– It is the charge for placing limit orders that add liquidity to the order book, typically lower.

7. Taker Fee– It is the charge for market orders that remove liquidity, usually higher than maker fees.

Start Crypto Futures Trading On SunCryto.

SunCrypto is proud to introduce the feature of crypto futures trading on its platform. The feature provides an opportunity to place future trades in more than 500+ trading pairs with up to 100X leverage. To start, just follow the given steps:

 

1. To begin Futures Trading on SunCrypto, first download the app from the Google Play Store or Apple App Store.
2. After installing, complete your registration and KYC (Know Your Customer) process.
3. Once KYC is done, add your bank account and deposit money using bank transfer (IMPS/RTGS/NEFT) or UPI.
4. To open the Futures section, tap on the “FUTURES” icon at the bottom of the app’s home screen.
5. You’ll be taken to a new page where you need to transfer funds from your SunCrypto wallet to your Futures wallet.
6. To transfer funds, tap the wallet icon on the top right, enter the amount, and confirm the transfer.
7. You can now select a trading pair like INR or USDT.
   • No need to deposit in USDT separately. If you’re trading in USDT pairs, your INR funds will be auto-converted.
   • After selecting a pair (for example, SOL/INR), you’ll see:
     • • Trade section (to place orders)
       • Chart section (to check market trends)
   • Based on your analysis, choose whether to:
     • • Long (Buy) – if you think the price will go up
       • Short (Sell) – if you think the price will go down
8. Select the margin type. SunCrypto currently supports only Isolated Margin.
   • This margin type is safer for beginners as it limits your risk to the amount used only.
9. Choose your order type:
   • Market Order (recommended for beginners as it executes instantly)
   • Limit Order, Stop Limit, or Stop Market for more control
   • Choose whether you want to place the trade in INR.
10. Enter the order amount, including leverage.
    • Example: If you have ₹1,000 and choose 50x leverage, you can trade up to ₹50,000.
    • If you want to reduce risk, you can trade with a smaller amount like ₹6,000.
    • You can also set Stop Loss (SL) and Take Profit (TP) to manage risk.
11. Once done, click Buy to place your order.
12. You can track your open position and P&L at the bottom of the screen.
13. For more details, click on the trading pair:
    • • Add margin
      • Edit TP/SL
      • View chart
      • Close the position
      • Share profits
14. When you’re ready to exit the trade, simply click Close.
15. To check your past trades, go to the Order History section on the Futures home page.

Risks Associated With Crypto Futures Trading.

Though crypto futures trading comes with high rewards, it also comes with its risks, which include:

1. High Volatility: Crypto prices can change a lot, which makes it risky, since you could lose your margin quickly if using leverage.
2. Leverage Risks: Leverage magnifies gains but also losses, potentially exceeding initial investments if markets move adversely.
3. Liquidation Risk: A quick drop in price can cause liquidation, so users may lose all of their gains.
4. Funding Rate Costs: Funding Rates can slowly chip away at profits if markets are unbalanced and the fees are consistently paid over time.
5. Overtrading: The fast-paced nature of futures trading can lead to impulsive decisions, resulting in significant financial losses.

Conclusion

Crypto futures trading makes it possible to minimize risk, speculate, and spread investments in an unbalanced market. SunCrypto makes it easy for traders in India to start futures trading and benefit from the unpredictable price swings of cryptocurrencies, without any pressure.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. All content provided is for informational purposes only, and shall not be relied upon as financial/investment advice. Opinions shared,  if any, are only shared for information and education purposes. Although the best efforts have been made to ensure all information is accurate and up to date, occasionally unintended errors or misprints may occur. We recommend you do your own research or consult an expert before making any investment decision. You may write to us at [email protected]