Bithumb contract beginner tutorial

Bithumb's contract trading platform empowers traders to speculate on future cryptocurrency prices without owning the assets, offering a comprehensive tutorial for beginners seeking guidance.

Nov 15, 2024 at 05:29 am

Bithumb Contract Beginner Tutorial: A Comprehensive Guide for Navigating the Platform

Introduction

Bithumb is one of the largest cryptocurrency exchanges in the world, and it recently launched a contract trading platform. Contract trading is a type of derivative trading that allows you to speculate on the future price of a cryptocurrency without actually owning it. This can be a profitable way to trade, but it is also important to understand the risks involved.

This tutorial will provide you with a step-by-step guide on how to use the Bithumb contract trading platform. We will cover everything from opening an account to placing your first trade. By the end of this tutorial, you will have a solid understanding of how to use the Bithumb contract trading platform and you will be able to start trading with confidence.

Step 1: Open a Bithumb Account

The first step is to open a Bithumb account. You can do this by visiting the Bithumb website and clicking on the "Sign Up" button. You will need to provide some basic information, such as your name, email address, and phone number. Once you have provided this information, you will need to create a password.

Once you have created your account, you will need to verify your email address and phone number. You can do this by clicking on the links that Bithumb will send you. Once you have verified your account, you will be able to start trading.

Step 2: Deposit Funds into Your Account

Before you can start trading, you will need to deposit funds into your account. You can do this by clicking on the "Deposit" button on the Bithumb website. You will then be able to select the cryptocurrency that you want to deposit. Bithumb supports a wide variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.

Once you have selected the cryptocurrency that you want to deposit, you will need to enter the amount that you want to deposit. You will also need to provide the address of the wallet that you want to deposit the funds from. Once you have entered this information, you will be able to click on the "Deposit" button.

The funds will typically be deposited into your account within a few minutes. However, it may take longer during periods of high traffic.

Step 3: Choose a Contract to Trade

The next step is to choose a contract to trade. Bithumb offers a variety of contracts, including Bitcoin futures, Ethereum futures, and Litecoin futures. Each contract has a different expiration date and a different multiplier. The multiplier determines the amount of cryptocurrency that you will receive if the contract expires in your favor.

When choosing a contract to trade, you should consider your risk tolerance and your trading goals. If you are new to contract trading, it is best to start with a contract that has a low multiplier. This will limit your risk if the contract expires against you.

Step 4: Place Your Order

Once you have chosen a contract to trade, you will need to place your order. You can do this by clicking on the "Trade" button on the Bithumb website. You will then be able to select the type of order that you want to place. Bithumb offers a variety of order types, including market orders, limit orders, and stop orders.

Market orders are executed immediately at the current market price. Limit orders are executed only when the market price reaches a specified price. Stop orders are executed when the market price reaches a specified price, and then they become market orders.

When placing an order, you will need to specify the amount of cryptocurrency that you want to buy or sell. You will also need to specify the price at which you want to buy or sell. Once you have entered this information, you will be able to click on the "Place Order" button.

Your order will be placed on the Bithumb order book. The order book is a list of all the buy and sell orders for a particular contract. Your order will be matched with an opposite order, and the trade will be executed.

Step 5: Monitor Your Position

Once you have placed your order, you will need to monitor your position. You can do this by clicking on the "Positions" tab on the Bithumb website. You will be able to see a list of all of your open positions.

You should monitor your positions closely to ensure that they are performing as expected. If a position is not performing as expected, you may need to close it out. You can do this by clicking on the "Close" button next to the position.

Step 6: Withdraw Your Profits

Once you have closed out your positions, you can withdraw your profits. You can do this by clicking on the "Withdraw" button on the Bithumb website. You will then be able to select the cryptocurrency that you want to withdraw. Bithumb supports a wide variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.

When withdrawing funds, you will need to provide the address of the wallet that you want to withdraw the funds to. You will also need to specify the amount that you want to withdraw. Once you have entered this information, you will be able to click on the "Withdraw" button.

The funds will typically be withdrawn from your account within a few minutes. However, it may take longer during periods of high traffic.