Investors will soon get to trade Bitcoin futures on CME, a sign cryptocurrencies are about to go mainstream…
The Chicago Merchant Exchange (CME) announced today (Dec. 1, 2017) that it will begin trading Bitcoin futures on Dec. 18. A futures contract allows an investor to buy or sell a commodity at a predetermined price on a specific future date.
CME is the world’s largest futures exchange, and that will help Bitcoin and other cryptocurrencies gain legitimacy with investors. Bitcoin will now be treated similar to other commodities, like precious metals and oil.
It will also allow investors to reduce the risk of owning Bitcoin and could bring more stability to crypto investing….
You Can Hedge Your Bets with Bitcoin Futures
Right now, the only way to profit from Bitcoin is to own it or invest in publicly traded companies that accept Bitcoin payments or mine Bitcoin.
That also means, if prices fall, Bitcoin investors can’t limit their losses or make a profit, since there aren’t any financial tools to hedge against price changes.
But thanks to CME Bitcoin futures, that will all change on Dec. 18.
If you believe Bitcoin prices have climbed too high too quickly, then you could hedge the risk by shorting a Bitcoin futures contract.
And CME’s Bitcoin futures news is even better for investors who want to profit from Bitcoin without the risk of owning it.
If you think Bitcoin prices are going to rise, you could buy long positions on Bitcoin futures that will gain value as Bitcoin prices go up. That means you can profit without having to worry about buying and securing the digital currency.
As more details unfold, we will keep Money Morning readers informed through our free cryptocurrency Profit Alerts service. It gives you real-time recommendations and price updates on only the best ways to make money now.
To get full access to all Money Morning content, click here
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.
Disclaimer: © 2017 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
The post Bitcoin Futures on CME Is a Go for Dec. 18, 2017 appeared first on Money Morning – We Make Investing Profitable.
Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.
