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Snike

Bitcoin futures - What is that?

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Another day of Snike not knowing anything about cryptocurrency... 

So I assume you've all read about these "Bitcoin Futures" or at least heard it once. On many news sites it says "Bitcoin Futures cause big spike in bitcoin price". So if something can bumb the price up that much I think I should know what it does or what it is in general. The only thing I know about them is that they are something in the fact of trading... o.O

What is/are "Bitcoin futures"? What do they/it do? And how do they affect the bitcoin price so much?

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5 minutes ago, sloj said:

https://www.investopedia.com/university/futures/

Basically this. Speculating on future price of Bitcoin.

Isn't daytrading the exact same? Like prediciting the price for stocks or coins or whatever? What's so special about futures?

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11 minutes ago, Snike said:

Isn't daytrading the exact same? Like prediciting the price for stocks or coins or whatever? What's so special about futures?

They don't require physical delivery of the commodity. It's just a contract.

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5 minutes ago, sloj said:

They don't require physical delivery of the commodity. It's just a contract.

So you predict it without paying something? Or only one time paymen

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7 minutes ago, Snike said:

So you predict it without paying something? Or only one time paymen

It's settled at the end of the contract period depending on the price. If you went long and price is higher than when you bought the contract you are in profit or loss if the price went down.

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I think you're referring to the trading exchanging site the deribit.com? their so called in their site The Bitcoin Futures and Option Exchange?

Well they stated on their site that they offer a 20x leverage in the future I hope its really true. Well their site as I have checked their reviews so far has a satisfactory feedback but still under observation based on users feedback. Their site is not user-friendly also and accepts only bitcoin and website design also is somehow confusing.

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Futures are nothing more than a way for traders to place bets on the price movements of something else.  Some futures, like for soybeans and gold, do allow for traders to actually take delivery, though they almost never do.  Once you replace the name "futures" with "betting opportunity" it all makes sense.

The Bitcoin futures do not allow for delivery, so they settle in cash only, so it really is just a fancy name for betting.

I was and remain worried about the effects of the futures markets on the price of Bitcoin, the thread on it is:  

 

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