Do you want to trade futures like a pro?
In this post, I will disclose how you can turn $10 to $1000 in futures trading using Bybit.
Bybit is ranked 6th in the “Top Cryptocurrency Derivatives Exchanges” by Coinmarketcap.
I will also show you how to use Bybit’s futures trading interface to enter a position, manage your risk and more.
If you wish to make over 215% in futures trading, this post is for you. Make sure to read to the end.
Post Summary
This is what I will cover:
- What Is Futures Trading?
- A Brief Overview Of Bybit
- How To Trade Futures On Bybit
- How To Turn $10 Into $1000 In Futures Trading Using Bybit.
- Conclusion
Let’s get started!
The video you see above is one of the best YouTube tutorials for trading futures on Bybit.
Watch the video if you want, and then continue with the post!
1. What Is Futures Trading?
In crypto futures trading, buyers and sellers enter into a contract to buy or sell an asset at a future date and a predetermined price.
Basically, it allows traders to predict the price of an asset and potentially profit from it if their predictions are accurate.
For example:
If the price of BTC is currently at $20,000, and I believe it will hit $21,000 at a later time.
I can enter into a futures contract and open a position to buy (Long) BTC at $20,000, with the expectation of closing (Take Profit) at $21,000.
You see, all that matters in futures trading is the price action.
The reason is that traders aren’t actually buying and selling the underlying crypto asset per se; rather, they are buying and selling the asset’s price.
There are two types of futures trading:
- Perpetual: They are futures contracts with no expiry date.
- Time-bound: Conversely, this refers to futures contracts with an expiry date.
To learn more about futures trading, I suggest you read our full post about it here.
All futures contracts are leveraged.
Are you lost? Allow me to explain it below.
Leverage Explained
Leverage is a trading strategy in which traders borrow funds from an exchange to increase their capital for more profit.
To clarify, let’s use this character, James, as an example.
James is a futures trader and has $100 as his trading capital.
Fortunately, he heard about a coin named NBC.
As a result, he used his $100 trading capital to open a trade to “long” NBC in the futures market with a 10x leverage.
This means that he used a total of $1000 to enter his trade, i.e., $100 x 10
Inferring that James had borrowed $900 from his exchange to start his trade.
Luckily, the NBC coin later appreciated by 60%.
Of course, this means that James has made a $600 profit (1000 x 60%) against $60 (100 x 60%) if he had traded only with his capital. This is all thanks to leverage.
However, note that James has to pay a small interest on his borrowed money.
I hope you are still following. Scroll down, and let’s discuss how to trade futures on Bybit.
2. A Brief Overview Of Bybit
Bybit is one of the world’s leading cryptocurrency exchanges.
The exchange was founded in 2018 and is used by 10 million users worldwide. Mind-blowing!
According to Coinmarketcap, this exchange closes over one billion dollars in daily trading volume.
Read Bybit’s full review here. Bybit Review: This Is Your Next Level Cryptocurrency Trading Platform!
To trade futures on Bybit, you must first create a Bybit account. See the steps below.
How To Create A Bybit Account
- Firstly, click to sign up for a Bybit account with this link.
Note: There is $5 worth of USDT up for grabs!
Bybit is celebrating its first 10 million users.
As a result, we are giving out $5 to the first 5 people to sign up for Bybit using the link above and make a deposit of at least $10.
Fill out this form to claim your prize!
Once the link opens, click “Participate Now“ to sign up.
In this 👉 post, I discussed how to verify and fund your Bybit account and also how to trade spot on Bybit with zero fees. You might want to check it out.
Continue to the next section!
3. Futures Trading On Bybit: Step-by-Step Tutorial
Navigating The Trading Interface
First off, Bybit lets you trade futures in three ways:
- USDT Perpetual: This allows you to trade perpetual contracts with USDT
- USDC Perpetual: With this option, you will trade perpetual contracts with USDC
- Inverse Contracts: On the other hand, this option allows you to trade both perpetual and time-bound contracts with the token being traded.
You will find these three options as soon as you click on “Derivatives.”
Secondly, when you click on any of the options above, a BTC futures contract opens up.
You can click on the switch icon before it if you want to trade another asset.
Beneath the contract is the chart.
You will see different timeframes, the candle chart, different indicators, and other trading tools.
You can expand the chart by clicking the relevant icon to conduct your technical analysis.
Thirdly, you will see the order book, which shows the different price levels other traders have set to buy or sell a contract.
Fourthly, if you are using a laptop, you place your order on the right-hand side of the interface.
I will be going over some of the key terms you need to know. They include:
Margin mode
This is the first option you will get to see in this section. It is where you set your leverage. There are two margin modes available:
- Cross Margin: With this mode, your open positions or all the trades you place are connected and funded with one account. Furthermore, if any of your trades is about to be liquidated, the profit from other trades is automatically used to maintain your position.
- Isolated Margin: This mode, however, as the name suggests, sets up a separate account for each trade you place. Also, liquidation on one trade doesn’t affect other open positions.
** Liquidation happens when trading capital is insufficient to maintain your leverage due to a decline in the asset’s value being traded.**
Order types
You will see three order types beneath the margin mode:
- Limit: This order type lets you set your preferred price at which you enter a position.
- Market: With this order type, you will enter a position at the current market price.
- Conditional: This order activates your position if certain criteria that you have specified are met.
Long And Short
These are the two positions you can take in crypto futures.
Long is also referred to as “Buy.” If you take a long position, you are bullish on an asset and want to profit from its upward price movement.
On the other hand, Short is a.k.a “Sell.” When you take a short position, it means you are bearish on a coin and want to profit from its downward price movement.
Moving on, the last section of the trading interface, which is situated downward, is where you see your current position and trade history.
Having given you all these details, we shall now go forward to trade futures on Bybit.
Step-by-Step Tutorial For Trading Futures On Bybit
To start:
- Click on “Derivatives” and select the kind of futures trading you want to perform.
For this post, we will select the USDT perpetual option.
Whichever you choose, ensure you have the coin in your derivatives wallet.
In this 👉post, I discussed how to fund your Bybit wallet and transfer funds to different accounts.
Note: By choosing a perpetual contract, you are liable to pay a funding rate, which is a fee deducted periodically from your balance to maintain your position for as long as you want.
- A futures trading interface for the BTCUSDT contract will be displayed. You can change this contract by clicking the “Switch icon.”
But for this post, we will be sticking with the BTCUSDT contract.
Feel free to always use the chart to conduct your technical analysis.
Suggested read: Chart 101| #1: Crypto Trading Indicators – What Are They Used For?
- Place your trade:
- Set your margin mode. Bybit offers up to 100* leverage on both margin modes.
- Select your preferred order type
- Enter the price and amount of coin you want to trade
- You can also set your take-profit and loss
- Finally, click on either “Buy/Long” or “Sell/Long”, depending on the position you want to take.
- Your open position will be displayed at the bottom of the screen.
The option to set your take-profit and stop loss can be found here, just in case you forgot.
In addition, you can also close your trade from this section.
That’s how to trade futures on Bybit. It is that simple.
Keep on reading!
4. How To Turn $10 Into $1000 In Futures Trading Using Bybit.
It is possible to $10 into $1000 in futures trading if know these helpful tips discussed below.
3 Tips for Becoming a Successful Futures Trader
- Plan out your trade
Do not jump into trading futures for the fun of it.
Always carefully conduct your analysis before you trade.
This means that unless you have a source where you get 70% dependable trade signals, you need to be knowledgeable about technical analysis.
- Risk Management
The direction of any asset is not guaranteed.
For this reason, it becomes vital that you practice risk management.
Never use all your capital in one trade.
In addition, have an exit plan if a trade goes against you.
If you are unsure whether you can monitor your open position, place a take-profit and stop-loss order.
Suggested Read: Trading Wisdom: Risk Management Strategies For Crypto Trading
- Choose your leverage wisely.
Exposure to high leverage can result in significant losses, particularly for an inexperienced trader.
The higher leverage you use, the more susceptible you are to being quickly liquidated.
To prevent abrupt liquidation, it is advisable to use 3x–5x leverage.
Why You Should Trade Futures On Bybit
The list includes:
- Reputability: Bybit has a great reputation, ranking as the sixth-best exchange to trade futures on CMC. Its high trading volume of over a billion dollars daily is no wonder it has amassed 10 million users.
- Security: This exchange has very tight security and, impressively, it has not been hacked since its launch up to this point.
- Low Fees: Bybit is one of the exchanges offering the lowest fees. Also read: 9 Top Crypto Exchanges with the Lowest Transaction Fees in Nigeria (2022)
- User-friendly: The exchange’s interface is simple and easy to navigate.
Other reasons you should use Bybit include numerous trading pairs, good customer support, etc.
So tell me why you wouldn’t use Bybit. Scroll down, and we will continue.
Conclusion
Whether the market is bullish or bearish, futures allow you to profit.
This is where we’ll draw the drapes. I hope the post was worth your time.
Low fees, impregnable security, and support for a range of coins are just a few of the reasons why Bybit is a great place to trade futures.
Moreover, the exchange has a good reputation and ranks among the best because of its high trading volume.
I want to get your feedback.
Would you love to trade futures on the Bybit?
Leave your thoughts in the comment section.
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