INTRODUCTION
In this comprehensive guide to trading cryptocurrency futures on BingX, the purpose of this blog is to provide a detailed tutorial for beginners on how to become proficient crypto traders. BingX is recognized as one of the top three trading platforms, making it an ideal choice for both experienced and novice traders.
There are several benefits to using BingX, including its liquidity, wide variety of cryptocurrencies available for trading, user-friendly interface, and exceptional customer service. Additionally, BingX offers a unique feature of no KYC or verification, allowing users to quickly and easily deposit and trade crypto from anywhere in the world.
As an affiliate partner with BingX, this blog aims to provide valuable information and insights into the platform. By using the affiliate link provided in the video description, users can not only receive up to $5,000 bonus upon sign up and deposit, but also get up to 50% of their trading fees.
BUYING CRYPTO
When it comes to buying cryptocurrency on BingX, there are a few important steps to follow. Here's a step-by-step guide to help you through the process:
1. Importance of Creating a New BingX Account
Before you can start buying crypto on BingX, it's important to create a new account. If you already have an account, it's recommended to create a new one using a new email address. By doing this, you can benefit from 50% off all your trading fees and up to $5,000 in bonus rewards upon sign up and deposit, which is exclusive to new accounts created through the provided link.
2. Buying Crypto with Fiat or Depositing from Another Exchange
Once you have your BingX account set up, you can choose to buy cryptocurrency with fiat currency (such as dollars, euros, or pounds) or deposit crypto from another exchange. If you decide to buy crypto with fiat, you will need to be KYC registered and verified on BingX. However, if you prefer not to go through the verification process, you can deposit crypto from another exchange where you are already verified.
3. Step-by-Step Guide to Depositing Cryptocurrency to BingX
If you choose to deposit cryptocurrency from another exchange, here's a step-by-step guide to help you through the process:
- Go to the "Assets" tab on your BingX account.
- Select "My Assets" and then click on "Deposit".
- Choose the cryptocurrency you want to deposit from the dropdown menu.
- Select the correct network for the cryptocurrency (e.g., Ethereum network for ERC20 tokens).
- You will be provided with a wallet address. You can either scan the QR code or copy the address to your wallet.
- Double-check that you have the correct wallet address and network before initiating the deposit.
4. Importance of Verifying the Wallet Address Before Depositing
Before depositing cryptocurrency to BingX, it's crucial to verify that you have the correct wallet address and network. Make sure to double-check the address and network before initiating the deposit. BingX or any other crypto exchange will not be responsible for any lost cryptocurrency due to sending it to the wrong address or network.
By following these steps, you can safely and effectively buy cryptocurrency on BingX. Remember to always exercise caution and double-check all information before making any transactions.
MARKETS ON BINGX
Here is an overview of the different markets available on BingX:
- Cryptocurrency Futures
- Stocks
- Commodities
- Indices
- Forex
Perpetual Futures and Standard Futures are the two types of futures contracts available:
- Perpetual Futures: These contracts support the use of USDT as margin and allow for leverage up to 150x. They also offer more advanced functionalities such as limit orders, conditional orders, and market orders. Perpetual Futures combine multiple orders into one position for easy management.
- Standard Futures: These contracts include both USDT and coin margin options. They offer simpler management and are more intuitive for ordinary users. Each order is managed independently in standard futures.
When it comes to margin types and position management:
- Perpetual Futures offer isolated margin and cross margin options. Isolated margin is recommended for beginners as it provides easier risk management and liquidation control. It isolates individual trades from others.
- Standard Futures also offer the choice between isolated margin and cross margin. Isolated margin is the preferred option for beginners.
Trading fees for different futures contracts:
- Perpetual Futures: Taker fee is 0.05% and maker fee is 0.02%.
- Standard Futures: Autonomous trading fee rate is 0.05%.
SPOT BUYING
Spot buying refers to a simplified form of buying and selling cryptocurrency without the use of leverage or trading. It involves buying or selling cryptocurrency at the current market price, also known as the spot price. Spot buying is often favored by beginners or those who prefer a straightforward approach to trading.
Guide to Buying Cryptocurrency on the Spot Market
If you're new to spot buying, here's a step-by-step guide to help you navigate the process:
- Create an account on BingX or use your existing account.
- Ensure that you have funds in your account, preferably in USDT or USDC.
- Navigate to the "Spot" section on BingX.
- Select the cryptocurrency you want to buy from the dropdown menu.
- Choose whether you want to place a market order or a limit order.
- For a market order, simply input the amount of cryptocurrency you want to buy and confirm the purchase.
- For a limit order, set the price at which you are willing to buy the cryptocurrency and wait for the market to reach that price.
- Once your order is filled, the cryptocurrency will be added to your account.
Remember to exercise caution and thoroughly research the cryptocurrency you are buying before making any transactions.
Demonstration of Buying Dogecoin on BingX
As an example, let's say you want to buy Dogecoin on Bing X. Here's how you can do it:
- Ensure you have sufficient funds in your account, preferably in USDT.
- Navigate to the "Spot" section on BingX and select Dogecoin from the dropdown menu.
- Choose whether you want to place a market order or a limit order.
- For a market order, input the amount of USDT you want to spend on Dogecoin and confirm the purchase.
- For a limit order, set the price at which you are willing to buy Dogecoin and wait for the market to reach that price.
- Once your order is filled, the Dogecoin will be added to your account.
Always double-check the order details and ensure you are comfortable with the transaction before proceeding.
Selling Cryptocurrency on the Spot Market
Selling cryptocurrency on the spot market follows a similar process to buying. Here's a brief guide:
- Navigate to the "Spot" section on BingX.
- Select the cryptocurrency you want to sell from the dropdown menu.
- Choose whether you want to place a market order or a limit order.
- For a market order, input the amount of cryptocurrency you want to sell and confirm the transaction.
- For a limit order, set the price at which you are willing to sell the cryptocurrency and wait for the market to reach that price.
- Once your order is filled, the corresponding funds will be added to your account.
Always be mindful of the current market conditions and set realistic price targets when selling cryptocurrency on the spot market.
DERIVATIVES FUTURES TRADING
When it comes to trading cryptocurrency futures on BingX, it is important to understand the risks and disclaimers associated with this type of trading. While futures trading can be highly profitable, it also carries a high level of risk. Traders should be aware that they can lose a significant amount of money when trading futures contracts.
Perpetual Futures and standard Futures are the two types of futures contracts available on BingX. Perpetual Futures support the use of USDT as margin and offer leverage of up to 150x. These contracts combine multiple orders into one position for easy management and offer advanced functionalities such as limit orders, conditional orders, and market orders. Standard Futures, on the other hand, include both USDT and coin margin options. They offer simpler management and are more intuitive for ordinary users, with each order being managed independently.
Limit orders allow traders to set a specific price at which they are willing to buy or sell a futures contract. Market orders are executed immediately at the current market price.
When trading futures contracts, it is important to understand the different order types available. BingX offers limit orders, market orders, and trigger orders (also known as conditional orders). Limit orders allow traders to set a specific price at which they are willing to buy or sell a futures contract. Market orders are executed immediately at the current market price. Trigger orders allow traders to set specific conditions for entry or exit, based on the price of the underlying asset.
To place a limit order on BingX, follow these steps:
- Select the desired cryptocurrency futures contract.
- Choose the type of order (buy or sell).
- Set the price at which you want to buy or sell the contract.
- Specify the quantity of contracts you want to trade.
- Confirm the order and wait for it to be executed.
To place a market order, simply select the desired cryptocurrency futures contract and choose the market order option. Specify the quantity of contracts you want to trade and confirm the order. Market orders are executed immediately at the current market price.
Trigger orders allow traders to set specific conditions for entry or exit, based on the price of the underlying asset
Trigger orders, also known as conditional orders, allow traders to set specific conditions for entry or exit based on the price of the underlying asset. For example, a trader can set a trigger order to automatically buy a futures contract when the price reaches a certain level. This can be useful for implementing specific trading strategies or managing risk.
It is important to note that trading futures contracts involves significant risk, and traders should carefully consider their risk tolerance and trading strategy before engaging in futures trading. It is recommended to start with a small amount of capital and gradually increase exposure as you gain experience and confidence in your trading abilities.
RISK AND LIQUIDATION
Risk management and liquidation are crucial aspects of trading cryptocurrency futures on BingX. It is important to understand the potential risks involved and how to protect your investment.
Explanation of Risk Management and Liquidation
Risk management involves implementing strategies to minimize potential losses and protect your capital. It is essential to set a clear risk tolerance and establish stop-loss orders to automatically close a trade if it reaches a certain predetermined price level. This helps prevent further losses in case the market moves against your position.
Liquidation refers to the process of closing a position when it reaches a certain liquidation price. In futures trading, leverage is used to amplify potential profits, but it also increases the risk of liquidation. If the price moves too far in the opposite direction of your position, your account may be liquidated, resulting in a loss of your entire investment.
Importance of Setting Stop-Loss Orders
Setting stop-loss orders is crucial for risk management. A stop-loss order is an instruction to automatically sell or buy a security when it reaches a certain price level. By setting a stop-loss order, you can limit your potential losses and protect your capital. It allows you to exit a trade before it becomes too risky or moves against your position.
When setting a stop-loss order, it is important to consider your risk tolerance and the volatility of the market. A wider stop-loss order may result in a higher risk of liquidation, while a tighter stop-loss order may increase the likelihood of being triggered by short-term price fluctuations. Finding the right balance is key.
Demonstration of Setting Stop-Loss Orders on BingX
On BingX, setting stop-loss orders is a straightforward process. Here's a step-by-step demonstration:
- Select the desired cryptocurrency futures contract.
- Choose whether you want to go long (buy) or short (sell).
- Set the entry price and the quantity of contracts you want to trade.
- Specify the stop-loss price, which is the price at which you want to exit the trade if the market moves against your position.
- Confirm the order and wait for it to be executed.
By setting stop-loss orders, you can effectively manage your risk and protect your investment on BingX.
Explanation of Risk-to-Reward Ratio
The risk-to-reward ratio is a key concept in trading that compares the potential profit of a trade to the potential loss. It helps traders assess whether a trade is worth taking based on the potential reward relative to the risk involved.
A favorable risk-to-reward ratio typically means that the potential profit outweighs the potential loss. For example, a risk-to-reward ratio of 1:3 means that for every $1 of risk, there is a potential reward of $3. Traders often aim for a risk-to-reward ratio of at least 1:3 to ensure that their winning trades can offset their losing trades.
By analyzing the risk-to-reward ratio of a trade, traders can make more informed decisions and improve their overall profitability in the long run.
STANDARD FUTURES
Standard futures on BingX offer a simplified approach to trading cryptocurrency. Here's an overview of the features and options available:
Overview of Standard Futures and Their Features
Standard futures contracts on BingX include both USDT and coin margin options. These contracts are designed to be more intuitive for ordinary users, offering simpler management and independent order management. With standard futures, each order is managed independently, making it easier to track and control.
Explanation of Leverage and Margin Options
Standard futures allow traders to utilize leverage, which amplifies potential profits. However, it's important to use leverage responsibly and understand the risks involved. BingX offers both isolated margin and cross margin options for managing your positions. Isolated margin provides easier risk management and liquidation control, isolating individual trades from others.
Guide to Opening and Closing Standard Futures Trades
Opening a standard futures trade on BingX is easy. Simply select the desired cryptocurrency futures contract, choose the type of order (buy or sell), set the price at which you want to buy or sell the contract, and specify the quantity of contracts you want to trade. Confirm the order and wait for it to be executed.
Closing a standard futures trade is just as simple. Navigate to the open positions section, select the desired position, and choose to either close the position entirely or partially. You can also set limit orders to automatically close the position at a specific price.
Introduction to Trigger Orders for Standard Futures
BingX also offers trigger orders, also known as conditional orders, for standard futures. These orders allow traders to set specific conditions for entry or exit based on the price of the underlying asset. For example, you can set a trigger order to automatically buy a futures contract when the price reaches a certain level. Trigger orders can be useful for implementing specific trading strategies or managing risk.
When using trigger orders, simply select the desired cryptocurrency futures contract, choose the type of order (buy or sell), set the trigger price, and specify the quantity of contracts you want to trade. Confirm the order and wait for it to be executed when the trigger condition is met.
It's important to note that trading standard futures contracts involves risks, and traders should carefully consider their risk tolerance and trading strategy before engaging in futures trading. It's recommended to start with a small amount of capital and gradually increase exposure as you gain experience and confidence in your trading abilities.
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FAQ
Answer common questions about BingX and trading futures
- Q: What is BingX?
- A: BingX is a trading platform that allows users to trade cryptocurrencies, stocks, commodities, indices, and forex.
- Q: What are the benefits of using BingX?
- A: BingX offers liquidity, a wide variety of cryptocurrencies, a user-friendly interface, and exceptional customer service. It also does not require KYC or verification, making it accessible to traders worldwide.
- Q: What are the different types of futures contracts available on BingX?
- A: BingX offers Perpetual Futures and Standard Futures. Perpetual Futures support the use of USDT as margin and offer advanced functionalities, while Standard Futures include both USDT and coin margin options.
- Q: What is the difference between isolated margin and cross margin?
- A: Isolated margin and cross margin are options for managing positions in futures trading. Isolated margin isolates individual trades from others, making it easier to manage risk and liquidation. Cross margin combines the margin of all positions, which can increase risk.