About CoinTiger 

CoinTiger derivatives in India are very popular. Let's take a look at what CoinTiger derivatives trading platform is.

CoinTiger, launched on November 15, 2017, is a centralized exchange based in Singapore. It supports deposits and withdrawals in Chinese Yuan.

CoinTiger claims to be the first crypto exchange to implement an equity mechanism with its own TigerCash (TCH) token. In March 2019, it reportedly allocated 50% of its annual net income for fiscal year 2018 to TCH holders at a rate of 100 TCH: 0.554 CNY bits. 

Since its launch in November 2017, CoinTiger has been upgraded multiple times on its platform and now has an ecosystem that includes the web, iOS, Android apps, and different exchange services (e.g. Cryptocurrency trading, Ticker Capital, Labs, IEO Project voting program). In mid-2019, CoinTiger reportedly had 2 million users across 100 countries in Asia, North America, Africa and Europe.

  • Commission structure: 0.15% for takers and 0.08% for makers.
  • Cyber ​​security measures. The firm reportedly has several partners to provide smart contract auditing and network security, such as Chaitin Tech, SECBIT, KNOWNSEC.COM, Lianan.org and John Wick Security Lab.
  • OTC: The firm reportedly offers a cryptocurrency exchange service that allows users in Australia, Canada, Singapore, the UK and Hong Kong to cash out US dollars to their respective local bank accounts.
  • KYC: KYC is optional unless users withdraw more than 2 BTC or want to trade in FIAT. KYC is optional for users who do not trade fiat money and do not withdraw less than 2 BTC.
CoinTiger Labs
CoinTiger Labs

What are cryptocurrency derivatives? 

CoinTiger cryptocurrency derivatives are of interest to many traders. Let's take a look at what crypto derivatives are that are traded by exchanges, including CoinTiger cryptocurrency derivatives trading platform.

Experienced traders and investors often use crypto derivatives to make money in the highly volatile cryptocurrency market in order to reduce risks. By themselves, derivatives are one of the oldest forms of financial contracts in the world, but they have only recently appeared on the cryptocurrency market and many are not familiar with them yet. We want to introduce you to this financial instrument and tell you about ways to make money on it.

Cryptocurrency derivatives are financial contracts that give the participants in the transaction certain rights and obligations regarding digital assets.

The easiest way to explain what a derivative is is with this example. Imagine buying anything, like a book, on pre-order. When placing such an order, the parties agree in advance on the price and terms of the transaction. And even if the value of the goods increases by the agreed date, the seller still undertakes to sell it at a predetermined price.

Under the derivative assets of cryptocurrencies, most often they mean futures, which oblige users to conclude a deal in the future according to the conditions predetermined in the contract. But this is not the only type of derivatives.

 But it is important to note that all crypto derivatives have no direct value on their own. The value of derivative assets is based only on expectations about how the price of a digital asset will change in the future. It also allows you to profit from fluctuations in the cryptocurrency market without owning the digital assets themselves.

TCH coin
TCH coin

Why were cryptocurrency derivatives created? 

First of all, derivatives help in hedging risks when trading and investing in cryptocurrencies. This is one of the best tools when you need to protect against sharp price fluctuations. In this case, the fixed price in the contract allows you to mitigate risks and avoid a sharp drawdown.

For example, for miners who are engaged in the production of BTC, the main risk is a sharp decrease in the price of a coin, at which its production becomes unprofitable. To protect themselves, the miner can open a BTC futures. In this case, if the value of the coin goes down sharply in the future, a futures opened in a short position will help offset losses.

Naturally, derivatives are also a useful tool for earning speculative profits. Some experts even attribute the significant growth in the value of cryptocurrencies in recent years to the emergence of various derivative assets based on cryptocurrencies. The issuance of derivatives for cryptocurrencies is a kind of global recognition of digital assets.

The creation of derivatives has also made it easier to use digital assets. Cryptocurrencies have become a completely new form of money that has no alternatives. And far from everyone still knows how to buy cryptocurrencies, where and how to safely store them.

Derivatives allow you to earn on cryptocurrencies without actually owning them. That is, in order to make a profit, an investor or trader does not need to create a cryptocurrency wallet, replenish it, or be able to make a transaction to another crypto address. It is enough to know what a derivative is and how it works, and many have long been familiar with these concepts.

Download mobile app
Download mobile app

Types of derivatives 

In general, there are two types of derivatives in the world - deliverable, in which the direct transfer of an asset is carried out, and settlement, ending only with the payment of the difference between the current and contract price. crypto derivatives belong to the second category, and they, in turn, can be divided into several types:

  • Futures with quarterly expiration. Such contracts regulate the sale of assets at a fixed price and within a fixed timeframe. Expiration, that is, the fulfillment of the obligations specified in the contract, and its closing is carried out once a quarter.
  • Perpetual futures. These are contracts for the sale of assets at a set price, but without an expiration date.
  • Options. These are short-term contracts that give the parties the right, not the obligation, to buy or sell an asset in the future at a set price.
  • Leveraged tokens. These are assets traded on the spot market. Each such token represents a basket of open positions in the market. In other words, it is a tokenized version of futures contracts.

It is worth noting that leverage can be obtained for all derivatives of cryptocurrency assets. This allows traders to potentially increase profits by several times, but also increases risks.

How do crypto derivatives work? 

Crypto derivatives work on the same principles as traditional assets: speculative profits can be made by predicting whether the price of an asset will go up or down.

Both short and long positions can be opened on derivative assets. For example, if a trader assumes that the value of an asset may decrease in the future, he may open a short futures position in order to capitalize on the depreciation. Expecting that the value of the asset will decrease, a trader can use leverage and borrow cryptocurrency from the trading platform. If the value of the asset really decreases, the trader will be able to buy the assets cheaper and return them to the exchange.

If the trader, on the contrary, is sure that the value of the coin will only increase in the future, they can open a futures contract for a long position. By fixing the current value of the coin in the contract, the trader will be able to purchase assets below the real market value in the future and thereby receive speculative profit.

At the same time, when using derivative cryptocurrency assets, most often there is no actual transfer of the asset. Traders' speculative profits or losses are more often expressed as a difference between the current and the price specified in the contract.

Most Popular Cryptocurrency Derivatives 

At the moment, the most popular cryptocurrency derivatives are futures, and their trading volumes are constantly increasing. CoinTiger crypto futures in India have remained popular in recent years.

How to make money on derivatives? 

The crypto exchange rate over the past few years has experienced a series of sharp ups and downs, ups and downs to an all-time high, and after just a few days, losing a third of its value. Such sharp changes in value open up huge opportunities for traders and investors to earn on changes in the price of an asset. But since the future value of an asset is always unknown, all bidders take risks.

To increase income, traders can use leverage - a kind of loan provided by the trading platform. The amount of leverage most often depends on the selected asset and in proportion to the deposit made.

The principles of trading in all cryptocurrency derivatives, regardless of their type, are always the same:

  • The first thing that is required is to register on the trading platform.
  • The second stage is the replenishment of the exchange account.
  • Next, you should conduct a deep fundamental and technical analysis of the market. This will help to predict the future movement of value and take an advantageous position in the market.
  • The final stage is the expiration of the contract.

On the day of expiration, futures obligations are fulfilled, that is, offsets are made between the participants in the transaction by paying the difference in prices, or the underlying asset is delivered.

Exchange tools prevent traders from leaving for a deep “minus”. 

From the fact that the price changes in the opposite direction from expectations, no one is insured. And sometimes the value of an asset can change so much that the investor's collateral no longer secures the deal. In this case, the exchange will inform the trader and offer to increase funding. If the client refuses, the position will be liquidated from the market at the current price.

Since the use of leverage is associated not only with obtaining excess profits, but also with the risk of incurring large losses, the amount of losses is always limited to a security deposit.

Where is the best place to trade? 

Today, trading in futures, options and other derivative assets is offered by many trading platforms. When choosing the best among them, attention should be paid to the following factors:

  • the amount of trading commissions
  • variety of assets and types of derivatives
  • convenience of the trading terminal
  • convenience of ways to replenish and withdraw funds

At the moment, CoinTiger cryptocurrency derivatives trading is an excellent choice.

The advantages of working with the platform include:

  • Convenient user interface that allows even users with basic knowledge to start trading derivatives.
  • Quality of service. CoinTiger users can always count on flawless and stable operation, as well as 24/7 support.
  • CoinTiger supports multiple languages. 
  • CoinTiger crypto futures trading can be carried out anywhere and anytime thanks to a convenient mobile application.
CoinTiger crypto futures trading
CoinTiger crypto futures trading

Trading Strategies 

Trading derivative financial instruments can be carried out according to two key strategies - hedging risks and earning speculative profits. The task of traders using a hedging strategy is to protect their assets acquired for the long term as much as possible.

For example, an investor purchased BTC for $1,000, expecting that after the halving, the value of the coin would double, doubling his investment portfolio. But a few months later, the value of the coin began to decline, causing the value of the recipient's investment portfolio to drop to $800. To avoid a potential loss of 20%, a hedge trader can open a short position, for example, in the BTC/USD pair, profiting from a fall in price and thereby protecting his investment from losses.

By a similar principle, you can hedge existing assets and short positions using transactions with leverage.

The speculative derivatives trading strategy is designed to extract the maximum profit from the transaction.

The task of speculators is to buy assets as cheaply as possible and sell them as expensively as possible. Speculator traders usually carry more risks than those who use a hedging strategy, since they mainly trade on margin with high leverage.

The most popular speculative trading strategies include scalping, intraday trading and swing trading.

Advantages and disadvantages 

If we talk about cryptocurrency derivatives, then the main disadvantage for traders is the high volatility of the market. Prices in the market can rise and fall at a tremendous rate. At the same time, losses can be multiplied by using leverage.

In addition, this market is quite complex and it can be difficult for novice traders to understand all the intricacies. The unpredictability of the market increases the likelihood of mistakes due to inexperience, which can be costly in margin trading.

At the same time, there are crypto derivatives and quite a few advantages. Key ones include:

  • new opportunities for earnings
  • ability to easily hedge risks
  • provision of leverage
  • variety of tools and assets
  • the ability to earn even with a decrease in the cost of cryptocurrency
  • the ability to earn speculative profits from trading cryptocurrencies without owning them

How to Trade CoinTiger Derivatives in India? 

How to register on CoinTiger? 

  • Go to the site, click "Register"
  • Enter phone number or email address
  • Enter verification code
Registration form
Registration form

How to trade? 

Visit the website. Click "Login", enter your username and password.

For example, you want to buy TCH for USDT, then select USDT Market and enter TCH in the search box. Login to the transaction page by clicking on TCH/USDT pair. If you want to buy TCH for USDT, select USDT Market and enter TCH in the search box. You will then be taken to the transaction page by clicking on the TCH/USDT pair. You can trade on CoinTiger via market sell/buy and limit sell/buy. If you choose market sell/buy, you can set the price close to ask1/bid 1 for sell/buy. However, you can also trade via maket if you want to execute a trade immediately.

Note: a stop limit order will be executed at the specified (or potentially better) price after reaching the specified stop price.

There is CoinTiger derivatives trading training on the website.

Start trading and you will be successful!

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The financial services provided by this website carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose