Home Finance Myths Busted About ETH Futures Contract and Crypto Trading

Myths Busted About ETH Futures Contract and Crypto Trading

ETH Futures Contract

Most investors come into the crypto industry with the absolute expectation of making a fortune from trading cryptocurrencies or investing in them. If not the most volatile, the crypto sector is reckoned as a volatile financial market because it is largely unregulated. Bursting into the market without proper orientation is a grave mistake plenty of traders and investors make as they embark on their trading journey.

While it is easy for an investor to either buy Bitcoin or any other cryptocurrency after watching a video on YouTube, he fails to realize that investing in cryptocurrencies does not only stop at buying. Eventually, he gets to suffer for his misconception either by losing his funds to scammers or as a result of a bad investment.

In trading cryptocurrencies, traders adopt various strategies as they look to make profitable returns off these digital assets. Spot trading is a one-way approach to the crypto market- entails buying low and selling high. This means that traders only make profits when the prices of cryptocurrencies skyrocket.

Apart from spot trading, the crypto market can be traded via a two-way method, meaning whether the price of a cryptocurrency, say Ethereum, moves up or down, traders make gains. This method or approach is known as Futures trading.

In light of this, we will outline some of the common misconceptions about Eth futures contract and crypto trading.

Crypto or ETH Futures Trading is an Illegal Activity

This is one of the oldest misconceptions, especially among non-crypto enthusiasts. Cryptocurrencies have come a long way, starting with Bitcoin, which came into the global scene in 2009. Despite gaining significant attraction, many people still believe that cryptocurrencies are shrouded in illegality. The reason for this misconception is no other factor than the pseudonymous nature of Bitcoin and other cryptocurrencies. Generally, crypto transactions are not traceable to the sender or recipient, except through a public key commonly known as wallet address. Still, the wallet address only reveals relevant details about the transaction and not the parties’ original identities.

Owing to this, much room has been given to bad actors to use these digital currencies for their illegal activities. However, there is nothing illegal about trading cryptocurrencies as it is just like trading the forex market, except for the fact that the latter is regulated. Besides, most governments are already recognizing and embracing Bitcoin and Ethereum as a good store of value. In the coming months, we will witness more adoption.

Trading ETH Futures Contract is Really Risky

Among certain traders, there is this misconception that trading the futures market is really risky and almost a no-go area. All aspects of the crypto market bear equal risks. But greater risks could arise where a trader fails to apply risk management or even trades without a strategy. Well, a trader would only be regarded as one if he ticks all the necessary boxes. Anything away from that is gambling, and gamblers are known to lose a large chunk of their money.

Trading ETH Futures requires a potpourri of skills and analysis comprising technical and fundamental analysis. ETH Futures traders speculate on the price movement of Ethereum- whether ETH will make a move up or down. In this case, they will either ‘long or short’ Ethereum, according to what they have seen on the charts. The risks in trading ETH Futures could be minimized if a trader does his homework. In essence, trading ETH Futures is only risky to the extent of a trader’s competence and knowledge of the market.

Trading Crypto or ETH Futures Requires a High Level of Intelligence

This is one of the reasons some investors take a laid-back approach to the crypto market. They would rather invest than actively trade. Certainly, both are good strategies, but they still have their pros and cons. It is their belief that the intelligence quotient (IQ) of traders is above 200, and that you need to be an ‘A’ student before grasping the workings of the market. None of this is true- not in this lifetime and not in the next- While trading requires a certain level of Intelligence, traders do not have to read books or watch videos on how to increase their intelligence levels.

Trading is a game of wits and strategies, and they do not teach these in any school. In fact, the best ETH Futures traders do not read too many trading books or materials or watch all the futures trading on YouTube. Doing all these may likely confuse them, and they begin to drift from the favourable strategies they have adopted.

Having a good knowledge of the market is the first step to becoming a good trader. A trader can only have a smattering knowledge of the crypto market if he takes note of his past experiences and learns from them. Every moment in a trader’s journey to being competent counts as a learning curve.

Every Speculation on the Future Price of  Ethereum is Correct

No trader gets it right the first time he starts trading. Even top traders still make errors in their analysis. The crypto market is unregulated and is not subject to manipulations, as such, it could move in the opposite direction contrary to initial expectations. As earlier mentioned, if a trader’s analysis on Ethereum turns out wrong, he should count it as an experience to learn from and get better with it.

Trading ETH Futures Without Emotions is the Best Way

Traders are humans, and have emotions. While it has been advised to keep one’s emotions in the bin when trading, they cannot be fended off. The way out is to adopt a strategy that revolves around one’s emotions such that if a trade goes wrong, such a trader will still remain sane. Traders have to come to terms with their emotions when trading ETH Futures or any other cryptocurrency.


There are many other myths and misconceptions surrounding trading. Some others include believing one can become an expert trader within a month, having the mindset that trading is all rosy or thinking that trading is generally easy. Trading is not a day’s job as it requires commitment mentally and materially.


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