What is Crypto Futures Trading?

This information comes directly from Nexo's help center

Crypto futures are contracts that represent the value of a specific cryptocurrency. You do not own the underlying cryptocurrency when you purchase a futures contract. Instead, you own a contract under which you have agreed to buy or sell a specific cryptocurrency at a later date.

In order to engage in Futures Trading, each user has to successfully complete a short test in the form of a questionnaire.

Futures contracts on the Nexo Pro platform are perpetual, which means they do not have an expiry date.

Benefits of trading Cryptocurrency Futures

  • Flexibility: Non-crypto holders can speculate on the price of a cryptocurrency and make quick profits. You can open a position in a crypto futures contract with the USDT stablecoin, and any profits made will be settled in the currencies you selected.
  • Leverage: Gain significant exposure to a specific cryptocurrency with only a fraction of its total cost. With leverage, you can magnify small price movements to create profits that justify your time and effort.
  • Liquidity: Crypto futures markets are extremely liquid, with trillions in trading volume. A liquid market is less risky because traders can enter and exit their positions easily with minimal slippage.
  • Portfolio Diversification: Diversify across trading strategies to generate more profits. You can develop sophisticated trading strategies, such as short-selling, pairs trading, etc.

How is Futures trading different from Spot Exchange trading?

Buying a cryptocurrency on the Spot Exchange and holding it in your Nexo Pro portfolio may bring you profits if the value of this asset appreciates over time.

Futures contracts, on the other hand, give you the opportunity to profit from short-term price movements in either direction. This means that you can opt for potential benefit, even when the market is in a decline.

More specifically, when the market is in a downturn, you can participate in a short position and as prices continue to fall, you will still be on the winning side.

Last but not least, Futures contracts can be used to protect against unexpected risks and significant price volatility, which makes them ideal for long-term investors.


  • Margin Trading and the Futures Exchange are currently unavailable for residents of the United States of America, Canada and Australia.
Source: What is Crypto Futures Trading?
August 23, 2022
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