Bitcoin Futures

8 min readarticleIncludes quiz · 3 questions

A Bitcoin future is a bet on where the price will be in the future — without owning any actual Bitcoin. It is a powerful tool for hedging and speculation, and a powerful way to lose money if you do not understand leverage.

Futures are contracts to buy/sell Bitcoin at a later time or with no expiry (perpetuals). They allow leverage but add liquidation risk.

Simple definitions:

  • •Leverage: Borrowing to control a bigger position.
  • •Margin: Collateral you post to open/keep a position.
  • •Funding rate: Periodic payment longs/shorts pay on perpetuals to keep price near spot.
  • •Liquidation: Forced close when margin is too low.
Key Takeaway

Futures amplify both gains and losses. Most retail traders lose money on leveraged futures. Unless you deeply understand margin, liquidation, and funding rates, spot buying is safer and simpler.

Test Your Knowledge

3 questions · Passing score: 75%

Enjoying these lessons?

Get a free Bitcoin lesson in your inbox every week. Join thousands of learners.

Free forever. No spam. Unsubscribe anytime.