How to play Upbit currency-based contracts

By understanding the concept, setting up an Upbit account, funding it, placing orders, monitoring positions, and taking appropriate actions, traders can navigate the nuances of Upbit currency-based contracts and leverage their potential for profit.

Nov 20, 2024 at 06:18 am

How to Play Upbit Currency-based Contracts: A Comprehensive Guide

Introduction

Upbit currency-based contracts, also known as perpetual futures, offer traders a unique way to gain exposure to the price movements of various cryptocurrencies without actually purchasing the underlying assets. This guide provides a step-by-step walkthrough of how to play Upbit currency-based contracts, empowering traders with the knowledge and skills necessary to capitalize on this exciting market opportunity.

Step 1: Understanding What Currency-based Contracts Are

A currency-based contract is a derivative contract that derives its value from the price of a designated cryptocurrency, such as Bitcoin or Ethereum. Unlike traditional futures contracts, currency-based contracts do not have an expiration date, allowing traders to maintain their positions for an indefinite period. They are also highly leveraged, meaning traders can control a larger position size with a relatively small amount of capital.

Step 2: Creating an Upbit Account

To play Upbit currency-based contracts, you must first create an account on the Upbit platform. Visit the Upbit website and click on the "Sign Up" button. Provide the required information, including your email address, password, and phone number. Verify your email address and phone number to complete the account creation process.

Step 3: Funding Your Account

Once your account is set up, you need to deposit funds to trade currency-based contracts. Upbit supports a variety of deposit methods, including bank transfers, credit card/debit card payments, and cryptocurrency deposits. Choose a convenient deposit method and follow the instructions provided by the platform.

Step 4: Placing an Order

To place an order for a currency-based contract, navigate to the "Derivatives" section of the Upbit platform. Select the specific contract you wish to trade, such as BTC/USDT Perpetual. In the order form, specify the order type, quantity, and leverage.

Step 5: Monitoring Your Position

After placing an order, it is crucial to monitor your position closely. Upbit provides real-time market data and position information in the "Positions" tab. Regularly check the price of the underlying cryptocurrency and adjust your position as needed to manage risk.

Step 6: Taking Profit or Closing Your Position

To take profit or close your position, simply place an opposite order of the same size. For example, if you entered a long position (buying) for a BTC/USDT Perpetual contract, you would need to place a short position (selling) of the same size to close your position.