{"id":13544,"date":"2017-11-27T22:35:45","date_gmt":"2017-11-28T06:35:45","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=13544"},"modified":"2018-01-30T05:53:27","modified_gmt":"2018-01-30T13:53:27","slug":"future-of-bitcoin-is-the-bitcoin-futures","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/future-of-bitcoin-is-the-bitcoin-futures\/","title":{"rendered":"The Future of Bitcoin is Bitcoin Futures"},"content":{"rendered":"

Commodity trading has become a \u201cniche area in the finance world that\u2026has been gaining more interest among individuals who are seeking alternative trading instruments from the usual stocks and bonds,\u201d says Timothy Ho<\/a>, economics\/finance professional.<\/p>\n

Commodities categories include precious metals, oil and gas, and soft commodities (cocoa beans, coffee, sugar, wheat, etc.). Some commodities are considered \u201cthe fifth asset class,\u201d and they can include cash, equities, and property.<\/p>\n

A futures contract settlement will occur in the future but traded today. \u00a0There are also spot contracts<\/a> that settle immediately called \u201cspot contracts.\u201d Most investors work with a commodities futures broker<\/a>, someone who understands your financial portfolio goals and can place trades for you for a relatively small fee on futures contracts for your account<\/p>\n

Some of the risks of futures trading<\/a> include:<\/p>\n

    \n
  1. Exchange rates<\/li>\n
  2. Geo political events<\/li>\n
  3. Supply and demand<\/li>\n
  4. Weather<\/li>\n
  5. Leverage and technicals<\/li>\n
  6. Price fluctuations<\/li>\n<\/ol>\n

    What are Bitcoins?<\/strong><\/p>\n

    <\/p>\n

    Bitcoins are the first global decentralized digital currency, which is one of many \u201ccryptocurrencies\u201d or a \u201cvirtual currency.\u201d Cambridge University<\/a> says 2.9-5.8 million people are actively using a cryptocurrency \u201cwallet,\u201d and it\u2019s more than a fad. \u201cCurrently, the combined market value of all cryptocurrencies is nearly $40 billion,\u201d says Dr. Garrick Hileman, Research Fellow at the Cambridge Centre for Alternative Finance (CCAF). \u201cThe advent of cryptocurrency has also sparked many new business platforms with sizable valuations of their own, along with new forms of peer-to-peer economic activity.\u201d<\/p>\n

    Trading in Bitcoins Futures<\/strong><\/p>\n

    In November 2017, Cannon Trading Futures Vice President Ilan Levy-Meyer wrote, \u201cThe hot market for today is definitely Bitcoin. While we don\u2019t have a future contract YET to trade, it is close and the CME does have the \u201cunderlying asset\u201d which will be the Bitcoin Index (More information will come out soon.).\u201d The company included a Bitcoin Index Futures chart<\/a> for traders to review.<\/p>\n

    Also in November, the CME Group<\/a> announced:<\/p>\n

    Effective Sunday[,] 10 December 2017 for trade date Monday[,] 11 December 2017, and pending all relevant regulatory review periods, please be advised that CME will launch Bitcoin Futures<\/a>.<\/em><\/p>\n

    It later revised the prediction to read Q4 2107, \u201cpending all relevant regulatory review periods.\u201d<\/p>\n

    On Your Mark, Get Set\u2026Bitcoin Futures Exchange Soon Open for Business<\/strong><\/p>\n

    Many investors are concerned with the additional risk of investing in Bitcoin cash futures<\/a>, with good reason. The value of Bitcoins has risen and dropped like a roller coaster. The reasons seem to be:<\/p>\n