Crypto Futures Trading on CoinDCX App: A Step by Step Guide

Introduction

CoinDCX Futures is one of the most important products in our portfolio that we have created for you. Futures trading has a host of benefits over regular crypto trading, including the fact that the trader has access to leverage, which when effectively used can potentially multiply profits on trades. 

Futures trading also provides various benefits such as;

• Easy liquidity
• Standardized contract size
• With crypto perpetual Futures, one can stay invested in a coin or a project for as long as they want to, provided they have enough margin to keep the position open.

Thus, the series of benefits that CoinDCX Futures provides for both traders and investors make it a very attractive product to take advantage of. However, the only thing you will need to be careful of is that leverage tends to be a double-edged sword, thus, one must understand this concept fully before attempting to take up leveraged trading.

Read all about the benefits of Crypto Futures Trading here

So, What is Crypto Futures Trading?

Futures trading in the world of crypto is a newer concept. It came to be when Bitcoin Futures trading was first launched back in December 2017 by the Chicago Mercantile Exchange (CME). The concept of Futures involves owning a contract that is derived from an underlying asset, which can be Bitcoin or any other crypto – and holding it instead of owning the actual crypto asset.

In this system, the investor or trader is only given a contract that certifies their position in the Futures market while the crypto is in the custody of the actual asset and the settlement is handled by the exchange providing this service. 

Want to take your first futures trade? Check out BTCUSDT perpetual futures on CoinDCX!

More recently, crypto futures have become a very popular method used by traders and investors to invest in cryptos without having to go through the hassles of buying and storing these assets safely. Crypto Futures have a few distinct advantages over simply buying cryptos such as solving issues pertaining to finding liquidity in the markets whenever you need to sell your assets and others like standardization of contract sizes as mentioned above. 

Read more: Comprehensive Guide to Crypto Futures

Start Crypto Futures Trading NOW

Steps

Step 1: 

Login, or sign up to your CoinDCX App if you haven’t already. After you login, this is the page you’ll see

Step 2: 

If you’re just signing up, you will need to complete a very simple and quick KYC formality (know your customer) and bank account verification by adding Bank Account details as per the requirements to avail of crypto and INR deposit and withdrawal facilities.

NOTE: To know more about the KYC process, read our detailed FAQs.

Step 3: 

Once you’re done with all the required formalities, fire up your CoinDCX App and head to the ‘Futures’ button in the bottom menu.

Step 4: 

If you’re a new user on the Futures platform, you will need to complete a short quiz that helps you become familiar with and aware of the additional risks that come along with trading in Crypto Futures.

Step 5: 

Once you complete the one-time quiz, you will be able to access the whole list of the available Crypto Futures trading pairs on your screen. Scroll through the list of available Crypto Futures trading pairs offered by CoinDCX Futures on the App and choose any one pair of your liking.

Step 6:

Now, once you have selected your preferred trading pair, you are welcomed by a view of some of the most basic and important numbers that one needs to know, including hourly, daily, weekly, and monthly price action. You can also view the chart by selecting the ‘View Chart’ option and if you scroll down further, you can also view the order book for the particular trading pair.

Optional step: Purchase USDT to trade smoothly, in case you already have USDT in your account, you can directly move ahead.

Read more: 10 Reasons why you should choose crypto futures trading on CoinDCX app

Step 7: 

Once you have decided which direction you want to trade, you can choose to go long by buying the Crypto Futures trading pair by clicking on the ‘Buy/Long’ button or you can even choose to go short by clicking on the ‘Sell/Short’ button. 

Step 8:

CoinDCX offers a multitude of options ranging from limit orders, market orders, and stop-loss orders for you to take advantage of to ensure that you can trade safely with and with an amount of risk that you are aware of and not risk hard liquidation in the market. 

Read more: Guide to CoinDCX crypto futures order types

Step 9:

You can also choose the amount of leverage you want to undertake in the particular trade, depending on your conviction. CoinDCX App offers up to 25x leverage for 150+ trading pairs on its platform.

Step 10:

Now once you have decided what order type to take, all you need to do is swipe to the right to place the order! Immediately, your order will be placed and executed according to your instructions. 

Step 11:

Now that you have entered the trade, the next most important steps include adding a take-profit order and a stop-loss order. While you can choose to trail take-profits to maximize running on the trend, having a stop-loss in accordance with your risk tolerance is extremely important.

Read: How to Manage Risk in Futures Trading

Note: This is a feature that is coming to CoinDCX App very soon!

Step 12:

If you ever want to adjust the leverage, all you need to do is add or remove it. You can also buy/add more positions or sell/reduce the existing positions as well.

Step 13:

Once your trade hits your desired take-profit level or the predetermined stop-loss level, you will be exited from the trade. If a stop-loss is not given, you might just be ‘hard liquidated’ and to prevent that you might need to add further margin to hold the position. 

Note: Stop-loss is a feature that is coming to CoinDCX App very soon!

That is it! You are now equipped with everything that you need to know on the CoinDCX App to start trading in Crypto Futures today!

Conclusion

CoinDCX provides you the functionality to seamlessly trade in Crypto Futures with a multitude of features provided on the CoinDCX Futures Trading App. Crypto Futures are perpetual in nature and an investor can also use Crypto Futures to track the price of the actual underlying asset very closely thus it is almost equivalent to holding actual cryptos without the hassle of holding or storing them.