How to operate Bithumb contract

To trade contracts on Bithumb's innovative platform, create an account, fund it with cryptocurrency, select a contract, open and manage your position, and finally close it when your trading objectives are met.

Nov 09, 2024 at 12:28 am

How to Operate Bithumb Contract

Introduction

Bithumb is a South Korean cryptocurrency exchange that has recently launched a contract trading platform. Contract trading is a type of derivatives trading in which traders speculate on the future price of an underlying asset without actually owning the asset. This can be a great way to make profits, but it also comes with a higher degree of risk.

Step 1: Create a Bithumb Account

Before you can start trading contracts on Bithumb, you must create an account. The process is simple and straightforward. First, visit the Bithumb website and click on the "Sign Up" button.

• Enter your email address, password, and other required information.
• Once you have completed the registration process, you will be able to access your Bithumb account.

Step 2: Fund Your Account

Once you have created a Bithumb account, you need to fund your account with cryptocurrency. You can do this by depositing cryptocurrency from another exchange or from your own wallet.

• To deposit cryptocurrency from another exchange, go to the "Deposit" page and select the cryptocurrency you want to deposit.
• Enter the amount of cryptocurrency you want to deposit and the address of your Bithumb wallet.
• To deposit cryptocurrency from your own wallet, go to the "Wallet" page and select the cryptocurrency you want to deposit.
• Click on the "Receive" button and copy the address of your Bithumb wallet.
• Paste the address into your own wallet and send the cryptocurrency.

Step 3: Open a Contract Trading Position

Now that you have funded your Bithumb account, you can open a contract trading position. To do this, go to the "Contracts" page and select the contract you want to trade.

• You can choose from a variety of contracts, including BTC/USD, ETH/USD, and LTC/USD.
• Once you have selected a contract, click on the "Open Position" button.
• Enter the quantity of contracts you want to trade and the price at which you want to enter the position.
• Click on the "Buy" or "Sell" button to open the position.

Step 4: Manage Your Position

Once you have opened a contract trading position, you need to manage it. This includes setting stop-loss and take-profit orders, as well as adjusting the position size if necessary.

• To set a stop-loss order, go to the "Orders" page and select the "Stop-Loss" tab.
• Enter the price at which you want the order to be triggered and the amount of contracts you want to sell or buy.
• Click on the "Place Order" button to place the order.
• To set a take-profit order, go to the "Orders" page and select the "Take-Profit" tab.
• Enter the price at which you want the order to be triggered and the amount of contracts you want to sell or buy.
• Click on the "Place Order" button to place the order.
• To adjust the position size, go to the "Positions" page and select the position you want to adjust.
• Enter the new position size and click on the "Update" button.

Step 5: Close Your Position

When you are ready to close your contract trading position, you can do so by going to the "Positions" page and selecting the position you want to close.

• Click on the "Close Position" button.
• Enter the number of contracts you want to close and the price at which you want to close the position.
• Click on the "Close" button to close the position.

Tips for Trading Contracts

• Use a stop-loss order to protect your profits and limit your losses.
• Set a take-profit order to take profits when the price reaches your target price.
• Manage your position size carefully.
• Do not trade with more than you can afford to lose.
• Use a demo account to practice trading contracts before you start trading with real money.
• Learn about the risks of contract trading before you start trading.