Cryptocurrencies

Profitable with Bitcoin Futures? Anonymous posts formidable tool on Reddit – Cryptocurrencies

At first it’s just a personal toy and then you realize its usefulness and it can end up being a successful invention. I never invented anything except maybe stories. A bird with a bank card on Reddit – What is this story ? – created a calculator which should give a boost – if he keeps his promises – Bitcoin and crypto traders and investors.


A penguin develops a calculator

A editor responding to the pseudonym of PenguinCB, recently published on the Binance Reddit page, a commentary where he presents a calculator that would help in trading perpetual contracts.

Perpetual contracts differ from futures contracts in that they can remain open indefinitely, as long as their holders make payment of their fees at regular intervals.

PenguinCB had initially developed this calculator for his personal use but, however, he decided to make it available to the general public to collect reviews and comments intended to improve the performance of his tool.

The latter would determine the ideal size of a position and the leverage to be used, depending on the level of risk desired and the trading plan. The tool is available here.

Crypto markets: a breeding ground for derivatives

Given its high volatility, the Bitcoin and cryptocurrency market is fertile ground for the use of derivatives, which are necessary to manage trading and investment risks, through hedging.

However, many traders and investors use these instruments for speculative purposes.

Derivatives have become essential financial instruments in the crypto markets, with the most common derivative products being futures, options and swaps, generally offered for Bitcoin (BTC).

In May 2020, the volume of transactions related to derivatives, reached a record level of 600 billion dollars.

The trend was then reversed in June 2020: indeed, this last period was marked by a consequent decrease in trading volumes of derivatives, to $ 393 million, the lowest value recorded during this period. year 2020.

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How would you rate this calculator overall? A zero dotted like an egg or a 10 – out of 10 – as the square root of 100? What? Sometimes, you don’t have to complicate your life looking for complicated word games. We let you test it! Is this a tool worth devoting another article to in the future – if there are positive developments – or a gadget whose effectiveness would be overestimated – PS: we may still write another article if at the end of the day it is a flop.

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