Learning how to place 100x Coin Club trades

The following guide will walk you through the steps of getting set up to trade 100x Coin Club, and how to execute the buy and sell the trade alerts.

The steps contained within this guide are as follows:

Understanding the difference between 'Spot trading' and 'Futures' trading
Selecting the exchanges you'll be using
Setting up & funding a CEX (Centralised exchange)
Swapping your fiat for cryptocurrency
Transferring your cryptocurrency to the exchange you'll be trading on
Executing a 'Buy to Open' & 'Sell to Close' 100x Coin Club Trade Alert on Spot
Executing a 'Buy to Open' & 'Sell to Close' 100x Coin Club Trade Alert on Futures/Derivatives
Executing a 'Sell to Open' & 'Buy to Close' 100x Coin Club Trade Alert on Futures/Derivatives

Understanding The Difference Between Spot & Futures

Scott put on an absolute masterclass on the perpetual futures during one of the weekly 100x Coin Club calls. This is the best place to go to deeply understand perpetual futures & how to trade them

You can find the masterclass here.

Spot Trading

In the spot market, you buy and sell cryptocurrencies such as Bitcoin and Ethereum for immediate delivery. In other words, cryptocurrencies are directly transferred between market participants (buyers and sellers). In a spot market, you have direct ownership of cryptocurrencies and are entitled to economic benefits, such as voting for major forks or staking participation.

Futures/Derivatives Trading

Crypto futures are contracts that represent the value of a specific cryptocurrency. You do not own the underlying cryptocurrency when you purchase a futures contract. Instead, you own a contract under which you have agreed to buy or sell a specific cryptocurrency at a later date.

What are the differences between Crypto Spot Trading and Crypto Futures Trading?

1. Leverage - Leverage makes futures trading extremely capital-efficient. With a futures contract, you can open a 1 BTC futures position at a fraction of its market value. Spot trading, on the other hand, does not provide leverage. For example, to purchase 1 BTC in the spot market, you would need thousands of dollars. Assuming you only have 10,000 USDT available, you could only afford to buy 10,000 USDT worth of Bitcoin in this case.

2. Flexibility to Long or Short - If you hold cryptocurrencies in the spot market, you may benefit from capital appreciation as the value of your cryptocurrency rises over time. Futures contracts, on the other hand, allow you to profit from short-term price movements in either direction. Even if the price of Bitcoin falls, you can participate in the downtrend and profit as prices continue to drift lower. Futures contracts can also be used to protect against unexpected risks and extreme price volatility, making them ideal for miners and long-term investors.

3. Liquidity - With trillions of dollars in monthly volume, the crypto futures markets provide deep liquidity. For example, the Bitcoin futures market has an average monthly turnover of $2 trillion, surpassing trading volumes in Bitcoin spot markets. Its robust liquidity promotes price discovery and allows traders to transact in the market quickly and efficiently.

4. Futures vs. Spot prices - Cryptocurrency prices are determined by buyers and sellers through an economic process of supply and demand. The spot price is the ruling price for all transactions in the spot market. The futures price, on the other hand, is based on the prevailing spot price plus the futures premium. The futures premium could be either positive or negative. A positive premium indicates that the futures price is higher than the spot price; conversely, a negative premium indicates that the futures price is lower than the spot price. Changes in supply and demand may cause the future premium to fluctuate.

For ore information on cryptocurrency futures, please read our 'Back To The Futures' document here.

Our Recommendation

We recommend that beginner traders place all of 100x Coin Club Trade Alert trades using the 'Spot' market, as the execution is much simpler.

For advanced traders, you can place the 100x Coin Club Trade Alert trades using either 'Spot' or 'Futures/Derivatives'.

'Sell to Open' trades can only be executed on futures/derivatives, and should only be executed by advanced traders who know how to short the market.

Selecting The Exchanges You'll Be Using

Please refer to our Exchange Guide for information on the different types of exchanges and the most up to date information on which exchanges are available in various locations around the world.

Step 1. Set up and Fund an Account on a Centralised Exchange (CEX)

If you are a total beginner, the first step in the process is to set up an account on an exchange that allows you to deposit fiat currency in order to exchange for cryptocurrency.

The following video guide walks you through this process using a popular Australian exchange - the process is very similar on all exchanges.

Below are guides to getting set up on some popular Centralised Exchanges:

Step 2. Swap Your Fiat For Cryptocurrency

Next, you will need to exchange your Fiat currency for cryptocurrency. The following video walks you through converting your Fiat to BTC, and you can copy these steps for any Spot token. If you’re trading perpetual futures, you will need to convert your Fiat to USDT (TetherUS).

The process to convert Fiat to USDT is identical as the BTC process shown above, but instead of selecting BTC (Bitcoin), you need to select USDT (TetherUS).

Step 3. Transfer Your Cryptocurrency to The Exchange You'll Be Trading On

The next step is to transfer your cryptocurrency to the exchange you’ll be trading on. If you are going to be trading on the same exchange that you have previously funded, you can skip this step.

In the video below, we walk through sending BTC (Bitcoin). If have purchased USDT, you will need to send USDT. The steps are identical, you just need to select USDT instead of BTC.

Important: Please ensure that you are using the same transfer network on both exchanges, or your funds may not arrive & be lost.

Step 4. Executing a 'Buy to Open' & 'Sell to Close' 100x Coin Club Trade Alert on Spot

Once you've got funds on the exchange you'll be trading on, you'll need to know how to execute a 'Buy to Open' trade alert on Spot. The following video will walk you through the process.

When it's time to close the trade that you've previously opened on Spot, you'll need to know how to execute a 'Sell to Close' trade alert. The following video will walk you through the process.

Step 5 (OPTIONAL). Executing a 'Buy to Open' & 'Sell to Close 100x Coin Club Trade Alert on Futures/Derivatives

If you’ve chosen to open your Long trades as Futures/Derivatives positions rather than Spot (e.g. to take advantage of lower fees), you’ll need to transfer your trading funds to the Derivatives section of your cryptocurrency exchange.

Once you've got funds on the exchange you'll be trading on, you'll need to know how to execute a 'Buy to Open' trade alert on Futures/Derivatives. The following video will walk you through the process.

When it's time to close the trade that you've previously opened on Derivatives/Futures, you'll need to know how to execute a 'Sell to Close' trade alert. The following video will walk you through the process.

Step 6. Executing a 'Sell to Open' & 'Buy to Close' 100x Coin Club Trade Alert on Futures/Derivatives

'Sell to Open' trade alerts are for advanced traders only. If you do not understand futures, or shorting the market, you should avoid taking these trades, as they can be very high risk.

For those who have experience with futures, leverage & shorting the market, the following video will walk you through the process of executing a 'Sell to Open' trade alert.

When it's time to close the short trade that you've previously opened on Derivatives/Futures, you'll need to know how to execute a 'Buy to Close' trade alert. The following video will walk you through the process.

Happy trading!

If you're new to trading and wish to learn how to place futures trades, you can purchase a private VIP 1:1 session with one of our crypto coaches.

To make a booking, please send a request to [email protected]