How to make money with DigiFinex contracts

By understanding the basics of contract trading and utilizing the platform's features strategically, traders can leverage DigiFinex contracts to potentially profit from price movements and hedge against risks.

Nov 25, 2024 at 05:22 am

How to Make Money with DigiFinex Contracts

DigiFinex is a leading cryptocurrency exchange that offers a variety of trading options, including contracts. Contracts are a type of derivative that allows traders to speculate on the future price of an asset. They can be used to hedge against risk or to profit from price movements.

If you're new to contracts trading, it's important to understand the basics before you get started. In this article, we'll walk you through the steps of how to make money with DigiFinex contracts.

Step 1: Open an Account

The first step is to open an account with DigiFinex. You can do this by visiting the DigiFinex website and clicking on the "Sign Up" button. Once you've created an account, you'll need to verify your email address and phone number.

Step 2: Fund Your Account

Once your account is verified, you'll need to fund it with cryptocurrency. You can do this by depositing cryptocurrency from another wallet or by purchasing cryptocurrency with a credit card or debit card.

Step 3: Choose a Contract

DigiFinex offers a variety of contracts, including perpetual contracts, futures contracts, and options contracts. Each type of contract has its own unique risks and rewards. Perpetual contracts are the most popular type of contract on DigiFinex. They are similar to futures contracts, but they do not have an expiration date. This means that you can hold a perpetual contract for as long as you want.

Futures contracts are another popular type of contract on DigiFinex. Futures contracts have an expiration date, and the price of the contract will converge to the spot price of the underlying asset on the expiration date. This means that you can use futures contracts to speculate on the future price of an asset.

Options contracts are a type of contract that gives the holder the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date. Options contracts can be used to hedge against risk or to profit from price movements.

Step 4: Place an Order

Once you've chosen a contract, you'll need to place an order. You can do this by clicking on the "Trade" button and selecting the contract that you want to trade. You'll then need to enter the amount of the contract that you want to buy or sell.

Step 5: Monitor Your Position

Once you've placed an order, you'll need to monitor your position. You can do this by clicking on the "Positions" tab. This will show you a list of all of your open positions. You can use this information to track your profits and losses.

Step 6: Close Your Position

When you're ready to close your position, you can do this by clicking on the "Close Position" button. This will sell your contract and realize your profit or loss.

Tips for Making Money with DigiFinex Contracts

Here are a few tips for making money with DigiFinex contracts:

• Do your research. Before you start trading contracts, it's important to do your research and understand the risks involved.
• Start small. When you're first starting out, it's a good idea to start with small trades. This will help you to get a feel for the market and avoid losing too much money.
• Manage your risk. It's important to manage your risk when you're trading contracts. This means setting stop-loss orders and taking profits when you're in a winning position.
• Be patient. Contracts trading can be a roller coaster ride. It's important to be patient and not get discouraged when you experience losses. Just remember that there's always another opportunity to make money.