What Is $PEPE Futures Trading?

Bittime - Futures trading became one that is starting to attract the attention of crypto investors. So, this article will discuss what $PEPE futures trading is and its advantages. Come on, check out the review!

Previously, we often heard about crypto trading directly or spot trading, now there is another way that provides more benefits. In fact, you can make a profit in a down market. 

One example is $PEPE futures trading. So, what is $PEPE futures trading and how does it work? Read the full explanation below.

What is Futures Trading?

Futures trading is a type of contract that allows you to buy or sell assets at a pre-agreed price, with a specified settlement date in the future. 

In this case, the assets being traded can be various financial instruments such as commodities, shares, or even crypto assets. 

Different from spot trading, which requires you to buy or sell assets directly on the market at real-time prices, futures trading provides more flexibility in choosing when to carry out transactions.

Futures trading is popular in traditional markets such as commodities and shares, but is now also increasingly being used in the crypto world. The advantage is that you can profit from both rising markets (bull markets) and falling markets (bear markets). 

Apart from that, futures trading also allows the use of leverage to increase potential profits.

Read also: PEPE Coin Is: Definition, History, and Everything You Need to Know

What Is $PEPE Futures Trading?

$PEPE Futures Trading is a contract between two parties who agree to buy or sell $PEPE tokens at a predetermined price in the future. 

What differentiates $PEPE futures trading from spot trading is that you don't need to buy these meme coins directly. However, you only invest in contracts linked to the future price of $PEPE.

For example, if you expect the price of $PEPE to rise, you can open a position long on futures contracts. On the other hand, if you think the price of $PEPE will fall, you can open a position short. 

Thus, $PEPE futures trading allows you to gain profits not only when asset prices rise, but also when asset prices fall.

One of the main advantages of futures trading is the ability to use leverage, which allows you to open a position larger than the capital you have. 

This leverage can reach 100x on some platforms, such as Delta Exchange, which allows you to get bigger profits with smaller capital.

Read also: Pepe (PEPE) vs Book of Meme (BOME): Comparison of the Most Unique Meme Coins

Benefits of Trading $PEPE Futures

Profitable in All Market Conditions

One of the biggest advantages of trading futures is the ability to profit not only when the price of $PEPE rises, but also when the price falls. With long position, you can make a profit when the price of $PEPE increases. 

Meanwhile with short position, you can make a profit even if the price of $PEPE falls. This makes futures trading very flexible and can be done in various market conditions, be it bullish (rising) or bearish (falling).

Hedge Price Risk

For $PEPE holders (HODLers), futures trading can be used to protect the value of their investment. For example, if you have some $PEPE and are worried that the price will fall, you can open a position short on the $PEPE futures contract. 

This will help reduce the impact of possible losses, without the need to sell the $PEPE you have.

Use of Leverage

Leverage in futures trading allows you to open a position that is larger than the capital you have. For example, with 10x leverage, you can open a position ten times the capital used. 

This means the potential profit can be greater, even though you only use a small portion of the original capital. Platforms like Delta Exchange even allow up to 100x leverage, which provides the opportunity to earn bigger profits in a short time.

No Need to Own Physical Assets

In trading $PEPE futures, you do not need to physically own $PEPE assets. you just need to buy a contract that refers to the future price of $PEPE. This makes the process simpler and makes it possible to gain exposure to $PEPE without having to purchase the token directly.

Read also: What is the Use of $PEPE Coin?

Conclusion

Trading $PEPE futures is a very interesting way for traders who want to take advantage of $PEPE price movements both when prices rise and fall. With advantages such as the ability to use leverage, hedge, and access the market in all conditions, futures trading is a more flexible and profitable option compared to spot trading normal 

However, like all forms of investment, futures trading also carries risks. Therefore, it is important for every trader to understand the mechanisms and risks involved before jumping into it.

FAQ About $PEPE

What is $PEPE?

$PEPE is a crypto token inspired by the popular meme "Pepe the Frog". Although it originally started as a meme, $PEPE is now one of the most widely traded crypto assets in the crypto market.

How to buy $PEPE?

$PEPE can be purchased on various crypto exchange platforms that support this token. You can buy using other crypto assets or via fiat currency supported by the platform.

Is $PEPE suitable for long-term investment?

As with other crypto tokens, $PEPE can be highly volatile. Therefore, you should do in-depth research and consider your investment objectives before deciding to invest in $PEPE.

What is $PEPE futures trading?

Futures trading $PEPE is a contract that allows you to buy or sell $PEPE at an agreed price in the future. This allows you to make a profit even if the price of $PEPE is falling.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference 

Delta Exchange, PEPE Futures & Perpetual Guide: Trade PEPE Futures On Delta Exchange, accessed December 30, 2024.

Kraken, Futures Contracts, accessed December 30, 2024.

Mexico, A Beginner’s Guide to PEPE Futures Trading, accessed December 30, 2024.

Author: Y