How to play Bithumb delivery contracts

Before trading Bithumb delivery contracts, it's crucial to open an account, fund it with cryptocurrencies, select the cryptocurrency to trade, set order parameters, and monitor your order actively.

Nov 12, 2024 at 07:08 am

How to Play Bithumb Delivery Contracts

Introduction:

Bithumb is a South Korean cryptocurrency exchange that offers a wide range of trading services, including delivery contracts. Delivery contracts are a type of futures contract that allows traders to buy or sell a cryptocurrency at a predetermined price on a future date. This can be a useful tool for hedging against price fluctuations or speculating on the future price of a cryptocurrency.

Step 1: Open an Account on Bithumb

To start trading delivery contracts on Bithumb, you first need to open an account. You can do this by visiting the Bithumb website and clicking on the "Sign Up" button. You will need to provide your email address, create a password, and agree to the terms of service.

Step 2: Fund Your Account

Once you have opened an account, you need to fund it with cryptocurrencies. You can do this by depositing cryptocurrencies from another wallet or by purchasing them directly from Bithumb.

Step 3: Place an Order

To place an order for a delivery contract, you need to first select the cryptocurrency that you want to trade. You can then choose whether you want to buy (long) or sell (short) the cryptocurrency. Next, you need to specify the quantity of the contract that you want to trade and the price that you are willing to pay or receive.

Step 4: Monitor Your Order

Once you have placed an order, you can monitor its status on the Bithumb website. You can see the current price of the cryptocurrency, the amount of profit or loss that you are making, and the time until the contract expires.

Step 5: Close Your Position

When you are ready to close your position, you can do so by placing an opposite order. For example, if you bought a long contract, you would need to place a sell order to close the position.

Additional Tips:

• Before you start trading delivery contracts, it is important to understand the risks involved. Delivery contracts can be a volatile market, and you could lose money if the price of the cryptocurrency moves against you.
• It is also important to use stop-loss orders to protect your profits. A stop-loss order is an order that automatically sells your contract if the price of the cryptocurrency falls below a certain level.
• You should also consider using a margin account when trading delivery contracts. A margin account allows you to borrow money from the exchange to trade, which can increase your potential profits but also your risk of loss.