Trading crypto futures is mostly done on regulated exchanges. These exchanges serve as intermediaries and ensure that every transaction runs smoothly and transparently. One important feature in futures is the use of leverage. Leverage allows traders to control larger positions with less capital.

However, leverage is a double-edged sword. On the one hand, leverage magnifies potential profits if the price prediction is correct. However, on the other hand, if the price moves against the trader's position, losses can be greater than the initial capital and result in automatic liquidation if the margin balance falls below a certain level.