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Bitcoin Futures for Dummies - Explained with CLEAR Examples!

238 ratings | 5110 views
What are Bitcoin futures and what are some examples that show how they work? In this video, I explain Bitcoin futures in a beginner-friendly way and also provide examples of how futures work in other real world markets. I also explain going short vs. long on a futures contract, how futures prices track spot prices, how they are used to hedge against price fluctuations, how they are daily settled and leveraged, and how Bitcoin miners and speculators can use this financial instrument in the Bitcoin/crypto world (since the introduction on CME and CBOE regulated exchanges). #Cryptocurrency #Crypto #Bitcoin #Ethereum #Futures #Explained
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Text Comments (34)
Bitcoin for Beginners (9 months ago)
For those who didn't quite understand Bitcoin futures now, did this video help? If so I would greatly appreciate if you would subscribe and also help me share this channel to your crypto friends as well!
munwwar ali sayyad (7 months ago)
Hi, video helped me understand futures little more than what I knew. What are your thoughts on okex news we have been hearing about lately?
Pietro Strassmann (2 days ago)
if you register at a futures exchange can you set your own dates? or are they already set by the exchange and there is nothing you could do basically?!
Bitcoin for Beginners (9 hours ago)
I think they are cash settled daily regardless
CaptainYesz (2 months ago)
A little old but I appreciated how you explained the whale theory of buying OTC, then going short to hedge and then lowering price. Interesting. Not obviously the only explanation as many would like to think but good to lay out there like this.
Bitcoin for Beginners (2 months ago)
Thank you for watching!
Cryptology (5 months ago)
DGTX opens this year! Digitex Futures will be huge! Thanks for the vid :D
Bitcoin for Beginners (5 months ago)
My pleasure!
agharte (7 months ago)
Great video! You should clarify that no one actually buys the asset in the contract as you wrote "buys/sells asset" in the 1:50 marker". It's all cash settled. Thus being named a derivative.
Bitcoin for Beginners (7 months ago)
You are correct. Thanks!
bLedq (7 months ago)
Solid vid!
Bitcoin for Beginners (7 months ago)
Thank you. This one took a lot of time to research and prepare
TiltEV (9 months ago)
https://www.youtube.com/watch?v=JKosEAKAIdE Someone stole your video Easy copyright strike
Aarti Jaiswal (9 months ago)
Helpful video. Simple language. Well done. Looking for more videos.
Bitcoin for Beginners (9 months ago)
Yay that was exactly what I was going for! Hope you stick around our community to catch future ones :)
stephen rendall (9 months ago)
This makes sense, Thanks Kevin, I havent done a lot of reading around this subject yet. but this definitely helps.
stephen rendall (8 months ago)
I have started trading yes, why do you ask?
Isaac Kendall (8 months ago)
stephen rendall like what I mean is have u started trading bitcoins?
stephen rendall (8 months ago)
I'm not sure what you mean?
Isaac Kendall (8 months ago)
stephen rendall, have you started anything on Bitcoin?
Paul C. (9 months ago)
I don't get how you 'agree on a fixed price' and then say 'the futures follows the price variation' ?
Bitcoin for Beginners (9 months ago)
Yea so futures are traditionally settled when you deliver the actual asset. For example farmer actually delivers wheat to the baker. That's why it makes sense to have an actual close date. However with Bitcoin it's slightly more blurred and technically you can constantly trade into and out of contracts whenever you want, given theres a willing counterparty. But if you never have a close date then technically it's not Futures but instead a different type of financial instrument
Paul C. (9 months ago)
I think i get the general concept but i still struggle to understand how it effectively works. When you say settled daily, you mean that futures start anyday? Because i've seen particular dates for 'cboe futures expiration'.
Bitcoin for Beginners (9 months ago)
And if you decide to exit your futures contract you would settle the difference with the exchange or clearinghouse and then someone else enters at that new/current price and takes over that contract at that moment.
Bitcoin for Beginners (9 months ago)
I'm pretty sure that Futures are settled daily so your gains or losses will be added to or subtracted from your trading account daily.
Paul C. (9 months ago)
Ok so say i enter a contract at 6700, the contract is for 1 month. I have 1 month to monitor when to execute the contract and make profit, right? So say if BTC continuously goes up during that month, you end up the 29th day where everybody will execute the buy/sell, hence creating a dip in the market? Am i understanding correctly?
bekim rexhepi (9 months ago)
Thanks great explanation
Bitcoin for Beginners (9 months ago)
My pleasure, thank you for watching!
Frederick Vesseur (9 months ago)
The BTC price shot up a bit after bitcoin futures closed. The people who were shorting BTC stopped selling after they made their money. Keep an eye on the futures to see if they are shorting or going long on BTC. That may determine the BTC price.
chelsea00 (6 months ago)
how do you check this sir?
Crypto Lover (9 months ago)
binary option with delayed timing... simple one sentence explanation
Entrepreneurs Book Club (9 months ago)
Good explanation

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