Question about futures

[VeilVortex]

Hey guys!
I have a question... do you think it's a good idea to invest BTC in futures now? With 3x leverage so as not to run as much liquidation risk?

Or do you think it's better to put my €100 in a wallet and wait?

Thank you for the help!

[Oshosondy]

I have a question... do you think it's a good idea to invest BTC in futures now? With 3x leverage so as not to run as much liquidation risk?

If bitcoin is at $60000 and you long it with 3x, the liquidation would be around $40000. If you can take the risk, you can go for it.

Or do you think it's better to put my €100 in a wallet and wait?

The exchange that you use for the future trading can be hacked
I do not think bitcoin can go below $40000 again but anything is possible
You may think to increase the leverage which might lead to money loss, that is future trading.

[EL MOHA]

First of all move topic trading discussion board.

There is a difference between trading and investing in bitcoin. Trading is much more difficult and risk than investing most especially the future trading which involves margins or leverages. Adding leverage increases the reward of your holdings because it increases your position and it also increases the risk of liquidation.

As Someone without knowledge of trading even if you have with this small capital, I will warn you against trading and advice you to just create a custodial wallet and buy bitcoin and store there for as long as you want without the fear of liquidation

[Dr.Bitcoin_Strange]

If you invest €100 into futures trading now with 3x leverage and let's say you enter a "buy /long" position, you will likely get liquidated when the price of bitcoin drops to $39k+, and with the current bull trend, I doubt if the bitcoin price will dropbelow $40k any time soon, but note that the price of bitcoin is dynamic and could go against the speculated price. So, if you enter a "long" position right now with 3x leverage and the price doesn't fall below your liquidation price, you can hold onto the trade for a long time until the price gets to $70k and keeps surging high, then you can take profit if you want. 

Trading is risky, keeping money in CEX for a long time is also risky. If you think you can handle the risk, you can go for futures, but if you also want to be on the safe side, you can buy and hold in your self-custodial wallet. The bitcoin price will definitely hit an new all-time high, and you will make a profit if you are holding. If you can also risk entering a long position in futures trading and the price goes as speculated, you will still be in profit. 

[SamReomo]

Follow the advice of EL MOHA and move this thread to Trading discussion board. This is not a technical discussion question but a trading related question. I would never suggest you to go for futures trading if you are not good at trading. I won't suggest you to go with 3x leverage for either short/long positions. Look the Bitcoin is have a parabolic move and if it continues then you might have risk of liquidation if you open short position with 3x leverage.

On the other hand after this parabolic move Bitcoin might get dumped in a strange and unexpected way. I suggest you to put your €100 in a wallet and wait for the market to calm down a little bit and then start try to invest your money by following DCA strategy and dip buying. That way you won't be at much risk, however if you're a good trader then you can take advantage of this parabolic move, but surely that way is full of risk.

[Assface16678]

Woah that's a lot of risk right there but depends on the bitcoin market it keeps on increasing in price if its continues then there is a posibility that it will reach another all time high (ATH) but that's still an speculations, its up to you if you can take the risk, the thing is futures is that the higher you raise the leverage the higher the damagee will also be get, but of course if you are right then the reward is imaginable, its your call just use the funds that you are ready to lose, it may be regretful for instances but if you are a risk taker then go for it, just remember there's a lot of hype right now in bitcoin so anything that could happen to bitcoin price could be unpredictable, its not too late yes but it still has the risk because you might enter in a peak position then possibility of correction.

[JeromeTash]

Hey guys!
I have a question... do you think it's a good idea to invest BTC in futures now? With 3x leverage so as not to run as much liquidation risk?

Or do you think it's better to put my €100 in a wallet and wait?

Thank you for the help!

People have different strategies and I suggest you also have your own rather than being told what to do. Both strategies can make money if well executed. Longing at x3 is still high risk. 40K isn't so far away if Bitcoin decided to drop in price. To minimize the loses, you have to deploy proper risk management.

Buying at spot market and waiting it out is much less stressful but require way too much patience.

[tbct_mt2]

I have a question... do you think it's a good idea to invest BTC in futures now? With 3x leverage so as not to run as much liquidation risk?

Invest does not mean you use your money to buy Bitcoin and trade it with leverages in Futures trading or Leverage trading. Invest means buying Bitcoin and hold it in your non custodial wallet or in your account on centralized exchange.

I want to warn that storing your bitcoin on centralized exchange is risky.

Reminder: do not keep your money in online accounts

Or do you think it's better to put my €100 in a wallet and wait?

Wait for Bitcoin to cool down, correct and buy it then hold it. It is very hot now and you will see a correction soon.

[adaseb]

With a 3x leverage your risk of liquidation is low, like someone mentioned above, you would be liquidated somewhere around $40K which is far away.

Your issue will be however the funding rate. Currently it’s expensive to long bitcoin on futures or perps. You are going to lose a lot of money paying the funding alone with the 3x leverage. And if the bull market continues then the fees might get worse and worse.

My advice is just buy it on spot and sleep well at night .

[Oshosondy]

Your issue will be however the funding rate. Currently it’s expensive to long bitcoin on futures or perps. You are going to lose a lot of money paying the funding alone with the 3x leverage. And if the bull market continues then the fees might get worse and worse.

I also wanted to talk about the funding rate but I thought it is not necessary, but the rate has gone higher. I saw it for bitcoin at 0.0753 on the exchange I looked at it now. The funding rate increased recently because of the increase in bitcoin price but once the market is less volatile, the funding rate will soon return back to 0.02% as usual. This will not take more than 3 days. But generally speaking I will also advice of holding on noncustodial wallet instead.

[boyptc]

You don't invest in futures but you are trading/gambling there. If I have that 100 euroes, I'll try to grow it even better and test my trading skill patiently. I don't care how long it will be but as long as it's growing, that's what matters for me.

And when everything is fine and grown, what I'd do is I will be putting everything that I have gained into Bitcoin and if possible, I'll take that cash as remembrance and will get out of the market.

Only if I'll be able to grow that.

[OcTradism]

With a 3x leverage your risk of liquidation is low, like someone mentioned above, you would be liquidated somewhere around $40K which is far away.

Your issue will be however the funding rate. Currently it’s expensive to long bitcoin on futures or perps. You are going to lose a lot of money paying the funding alone with the 3x leverage. And if the bull market continues then the fees might get worse and worse.

Risk is low but it exists and funding fee is another issue.

Additionally it will cost a trader a lot for a position that is opened a long time in Futures trading and Funding rate is not static but it is dynamically changed with demands on the market. When people are bullish, funding rate will become more expensive.

My advice is just buy it on spot and sleep well at night .

I can not disagree.

You don't invest in futures but you are trading/gambling there. If I have that 100 euroes, I'll try to grow it even better and test my trading skill patiently. I don't care how long it will be but as long as it's growing, that's what matters for me.

And when everything is fine and grown, what I'd do is I will be putting everything that I have gained into Bitcoin and if possible, I'll take that cash as remembrance and will get out of the market.

Only if I'll be able to grow that.

With $100, it's hard to increase it too much by investing in Bitcoin. Doubling it is possible but more than x2, I don't know if it is a Bitcoin investment and in only one cycle.

With $100, I would prefer to pick top altcoins of new trends and hold it in this bull run, it can give me x5 x10 and with a bigger capital like $1000, it is better to trading, with Spot, not with Futures or Leverages.

[Husires]

Leverage is used to multiply the effect of simple price movements. If the price changes by 1% per day, it is used to obtain faster profits and faster losses, but Bitcoin moves with rapid growth and using leverage means that your chance of loss has become much greater than profit due to the difficulty of anticipating the next price movement. Investing in Spot is better at the current stage and leverage is risky in traditional market conditions when the daily price movement could not be predicted.

[alastantiger]

Or do you think it's better to put my €100 in a wallet and wait?

Once I read this kind of question the first thing that pops in my head is that you have no business trading Bitcoin. Bitcoin trading is not anything anyone can wake up and decide that they would start doing. More people lose in Trading Bitcoin done in putting it in a wallet and waiting. You are in luck, invest your €100in Bitcoin and wait.

[aylabadia05]

I have a question... do you think it's a good idea to invest BTC in futures now? With 3x leverage so as not to run as much liquidation risk?

Or do you think it's better to put my €100 in a wallet and wait?

This is better than taking the risk of trading it, although it does not rule out the possibility that if you trade it you will make a profit.
I think with Bitcoin price movements almost reaching the previous ATH price considering that the halving is still several months away, putting it in your wallet and holding on until the highest price is reached would be better in my opinion.

If you choose to trade futures, it can be done with small capital. But for now holding and storing in a wallet is best.

[tvplus006]

I have a question... do you think it's a good idea to invest BTC in futures now? With 3x leverage so as not to run as much liquidation risk?..

It depends on how good you are at trading. Of course, using leverage you can get a bigger profit, but you can also lose your money if the price of the coin moves in the opposite direction to your expectations.

[FinePoine0]

Hey guys!
I have a question... do you think it's a good idea to invest BTC in futures now? With 3x leverage so as not to run as much liquidation risk?

Or do you think it's better to put my €100 in a wallet and wait?

Thank you for the help!

Futures trades are generally high risk, as you may not be set against. You keep the dollars in your wallet or convert them to bitcoins. So hold for long term here you can definitely earn profit, but no matter how many futures trades you join there is 80% chance of loss.

[shinratensei_]

at time of uncertainty like this i recommend spot to be honest but if you really willing to go with future then maybe 2x leverage is enough the thing is right now many people speculating whether there gonna be some correction before the price take off again and if that happen it means that its a trap for anyone setting up position in future like you your high leverage will definitely get liquidated whenever flash dump because of correction occur.
you will need to take care of that otherwise you will just become a food for the whales, because there has been many scene where the market will suddenly dumps or pumps when there's so many contracts in future that can be liquidated due to margin call.
always remember that things can definitely go wrong and its not always smooth sailing, i mean yeah 3x leverage with bitcoin bullish could mean triple the profit but imagine the opposite scenario.
at least with spot you can be spared of the sudden liquidation and could just wait it out, after all you can't lose if you faithfully holding bitcoin.
just my opinion though definitely don't take it as a financial advice but something need to be accounted for, im holding from accumulating these days since i've accumulated enough before this recent pumps.

[yudi09]

I have a question... do you think it's a good idea to invest BTC in futures now? With 3x leverage so as not to run as much liquidation risk?

Your trading ability determines everything. You can get big profits by applying leverage in trading, but there is also a big risk of loss due to unpredictable movements.
If you ask which is better, like it or not, in conditions like this, the best action is to save it in your wallet and wait rather than being reckless with great desires so that the result ends in failure.

[God bless u]

I think you should just buy some BTC and put it in your wallet rather than future trading. The market is so unpredictable nowadays due to the ongoing wars and crisis in the middle east and Europe Bitcoin halving is also close and probably happen in april. The market is not suitable for future trading and there are more chances of failure in investments.I don't prefer future trading either on normal days because you don't need to take that much of risk.

Just make yourself in comfort with small profits so that you can neglect the losses and build up your portfolio slowly and professionally.Itll also help you gain a lot of knowledge in crypto. After having sufficient knowledge of the investments you'll do due to experience it'll come out richer than you'll expect.