How to make money with Poloniex contracts

To trade Poloniex contracts, create an account, fund it, select a contract and determine the amount you're willing to risk (position size), set a buy/sell order with a price, and monitor your position while taking profits regularly to mitigate losses.

Nov 25, 2024 at 06:42 am

How to Make Money with Poloniex Contracts

Introduction

Poloniex is a cryptocurrency exchange that offers a variety of trading options, including spot trading, margin trading, and futures trading. Contracts are a type of futures contract that allows traders to speculate on the future price of a cryptocurrency. They are similar to options, but they have some key differences.

Types of Contracts

There are two types of contracts on Poloniex:

• Perpetual contracts are contracts that do not have a fixed expiration date. They can be held indefinitely, and they are typically used for short-term trading.
• Quarterly contracts are contracts that have a fixed expiration date. They are typically used for long-term trading.

How to Trade Contracts

To trade contracts on Poloniex, you will need to create an account and deposit funds. Once you have done this, you can follow these steps:

1. Choose a contract. The first step is to choose a contract to trade. You can choose from a variety of different cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.
2. Set your position size. The next step is to set your position size. This is the amount of cryptocurrency that you are willing to risk on the trade.
3. Place your order. Once you have set your position size, you can place your order. You can choose to buy or sell the contract, and you can set a limit price or a market price.
4. Monitor your position. Once you have placed your order, you should monitor your position closely. You can do this by using the Poloniex trading interface.

Tips for Trading Contracts

Here are a few tips for trading contracts on Poloniex:

• Use a stop-loss order. A stop-loss order is an order that will automatically sell your contract if the price of the cryptocurrency falls below a certain level. This can help you to limit your losses if the market moves against you.
• Take profit regularly. Don't let your profits run too long. Take profits regularly to lock in your gains.
• Be patient. Trading contracts can be a profitable way to make money, but it takes time and patience to learn how to trade them successfully.

Conclusion

Trading contracts on Poloniex can be a profitable way to make money, but it is important to understand the risks involved. By following the tips above, you can increase your chances of success.

Detailed Steps on How to Make Money with Poloniex Contracts

1. Create an account and deposit funds.

The first step is to create an account on Poloniex and deposit funds. You can do this by following these steps:

• Go to the Poloniex website and click on the "Sign Up" button.
• Enter your email address and create a password.
• Click on the "Create Account" button.
• Once you have created an account, you will need to deposit funds. You can do this by clicking on the "Deposit" button in the top right-hand corner of the screen.
• Select the cryptocurrency that you want to deposit and follow the instructions on the screen.

2. Choose a contract to trade.

Once you have deposited funds, you can choose a contract to trade. You can choose from a variety of different cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.

To choose a contract, click on the "Contracts" tab in the top navigation bar. Then, select the cryptocurrency that you want to trade and click on the "Trade" button.

3. Set your position size.

The next step is to set your position size. This is the amount of cryptocurrency that you are willing to risk on the trade.

To set your position size, enter the amount of cryptocurrency that you want to trade in the "Amount" field. Then, click on the "Buy" or "Sell" button.

4. Place your order.

Once you have set your position size, you can place your order. You can choose to buy or sell the contract, and you can set a limit price or a market price.

To place an order, click on the "Buy" or "Sell" button. Then, enter the price that you want to buy or sell the contract at in the "Price" field. Finally, click on the "Place Order" button.

5. Monitor your position.

Once you have placed your order, you should monitor your position closely. You can do this by using the Poloniex trading interface.

To monitor your position, click on the "Positions" tab in the top navigation bar. Then, select the contract that you are trading and click on the "View" button.

6. Take profit regularly.

Don't let your profits run too long. Take profits regularly to lock in your gains.

To take profit, click on the "Sell" button in the trading interface. Then, enter the amount of cryptocurrency that you want to sell in the "Amount" field. Finally, click on the "Place Order" button.

7. Be patient.

Trading contracts can be a profitable way to make money, but it takes time and patience to learn how to trade them successfully.

Don't get discouraged if you don't make money right away. Just keep learning and practicing, and you will eventually be able to make consistent profits.