Best Crypto Futures Trading Platforms in Australia
Quick-Take: The best crypto futures trading platform in Australia is Bybit because they offer up to 100x leverage on over 450 cryptocurrencies for low fees. They also do not require KYC or verification to sign up to their platform.
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Futures and leverage trading in the cryptocurrency world allows users to borrow money from a crypto exchange to add more size to their trade. For example, if you are opening a 10X Long Position on Bitcoin with $1,000AUD, your total position size will be $10,000AUD.
The term 'Futures' derives from the fact that you are buying or selling a contract that speculates on the future price of a digital asset.
The best cryptocurrency exchange for Australian investors to begin trading digital assets with leverage is Bybit. They are widely regarded as one of the finest cryptocurrency investing platforms in the world due to their high leverage options, no KYC required and diverse range of features on their platform. Their platform offers up to 100x leverage on Bitcoin, Ethereum, and many others.
The guide below is a high-level overview on how to start leverage trading cryptocurrencies on Bybit.
Step One: Sign up to Bybit, you can verify your details if you want but Bybit does not require its users to KYC unless they are withdrawing more than 2BTC a day.
Step Two: Visit the 'Buy Crypto' tab and enter the amount of AUD you wish to spend and what coin you wish to invest in (ETH, USDT or BTC are the available options). Once you have filled those details in, simply find the third party website you wish to purchase crypto through.
Step Three: Once you have completed the transaction, the funds will appear in your Assets page under 'Spot Account'. Once you can see your funds in your account, visit the 'Derivatives' tab and select the cryptocurrency pair you wish to trade. In the below example we will use Bitcoin (BTC).
Step Four: Click 'Long 1x' or 'Short 1x' depending on which position you wish to open. A pop up will show and you simply need to pick the leverage you wish to use and if you would like it to be Isolated or Cross. Press confirm and then open your position.
Why should I trade with leverage?
The reasons traders use leverage or futures contracts is to help hedge price risk. For example, if I hold 100 Ethereum and want to hedge expected near-term volatility, I could open up a Ethereum short so I can make some money back on the way down. This revenue earned could then be used to buy back more Ethereum at a cheaper price.
The other most common reason is purely to speculate on the price direction. Leverage gives traders the ability to trade with large size which they may not have the funds for, and it can enable them to make incredible gains in bull markets. However, there are ofcourse extremely large risks involved and is a practice that is generally recommended for confident and experienced traders.
Is Bybit Futures safe and reliable?
Bybit is considered to be a high security cryptocurrency exchange and has never been subjected to a cyber attack and has never experienced any hacking incidents. They also require all of their users to enable 2FA (Two Factor Authentication) to prevent such attacks.
Frequently Asked Questions
Is Crypto Futures Trading risky?
Trading cryptocurrencies are inherently risky because of their high volatility. Adding leverage to a highly volatile asset makes it very dangerous, and is why it should only be used by sophisticated traders/investors.
What is the Crypto Futures Trading tax?
Crypto futures trading is taxed the same way as standard capital gains tax. This means you will be taxed 50% on gains from trades closed within 1 year of opening the position.
What do I trade futures with on Crypto platforms?
The most common form of collateral across the major crypto futures trading platforms are stablecoins. You will most-likely need USDT or USDC to access exchanges like ByBit and FTX.