Binance futures trading is essentially betting on whether an asset will rise or fall at a certain time or not, hoping to make some money from it. However, there’s a downside – it’s not without risk, and you’ll need to have a working understanding and plenty of practice.
That is why beginning with practice trading is smart, to learn the charts and the ins and outs of futures. Binance is one of the largest cryptocurrency exchanges in existence that doubles as a hub for a whole slew of trading activities, including futures trading on a “test mode.”
But, if you searching for a good alternative , here it is: At Altrady, we offer a powerful trading platform that provides traders of all levels with an edge in the crypto market.
This post makes a real comparison between Binance’s paper trading and Altrady’s advanced tools to aid you in choosing which platform to use for the trades.
What is Binance Futures Paper Trading?
In futures trading, people bet on the future price of a cryptocurrency in hopes of making money. In exchange based platforms, traders are able to trade using leverage without owning the actual cryptocurrency, and in doing so can make profits on both rising and falling markets.
You can paper trade futures on Binance as well. When you begin, the exchange provides you with $3,000 USDT in virtual money that you can use to trade any crypto asset, in either isolated or cross mode, so you can hone your skills with no actual financial risk.
How to Create and Use Binance Futures Paper Trading?
The purest form would be to register yourself on Binance using your email ID and password. Once you are signed in:
1. Visit the USDⓈ-M or Coin-M Futures trading page. And remember, you don’t need any real money to begin paper trading.
2. To the top right of the page, click on your profile and select Mock Trading (which will put you into a test environment).
It is just like real futures trading, but it’s fake money!
You will be provided with a 3,000 USDT starting balance, and it is 125x leverage enabled. The testnet account will connect to your real account directly.
When you’re ready to switch back, click on “Back To Live” to return to your account.
Paper Trade on Binance You can paper trade on web browsers and mobile apps, so practice can be done anytime and anywhere.
Drawbacks of Binance Paper Trading
Binance futures paper trading, also known as mock trading, provides a testnet for trading futures, allowing users to have risk-free training for trading futures.
Futures testnet stimulates actual market conditions for a variety of assets in a frictionless manner—so you get to try out different trading strategies without any market risk.
But there are a few problems:
1. The mock trading data provided by Binance on candlesticks chart and asset price may not correspond well to the the live trading scenario. This difference may lead to losing the precision of your practice.
2. Spot Testnet paper trading is available for the Binance API only on trading platforms like Altrady. Learn how to use the instrument with this link to the Spot Testnet from Binance.
3. The futures testnet can only be accessed natively within the Binance Futures trading terminal.
Benefits of Using Altrady for Trading Cryptocurrency
Altrady is one of the fastest-growing crypto trading platforms offering advanced tools and features.
1. Smart-trading Options
Entry and exit points can be defined with a set of criteria and the system can enter and exit trades automatically.
- Ladder orders: Quickly set multiple sets of automatic orders up to 10, such as the start and end price of the range, at the same time set the total amount.
- Price scaling: Sort the orders with a desired scale. You can use the linear or the reverse fibonacci scales or you can enter the price for each order manually.
- Scale: Determine how large each order will be.
- Trailing entry order: This allows your order to “trail” the market as it moves, as long as it doesn’t hit your prescribed price.
- Profit protection: Profitable positions quickly turn into losses after double-triggers. Employ the stop loss protection to secure your position and prevent losing money by increasing your stop loss.
- Hotkey presets: Save intraday trading setup presets and go long/short with one key.
2. DCA Bot
One such interesting feature on Altrady is the DCA (Dollar Cost Averaging) bot- which allows users to set limits and schedule to go into the market at different prices- something that Binance does not have.
This is an intelligent automation software to make the best investments using the layering scheme:
- This strategy is level-based, and bots can adjust to market conditions as needed.
- The bot buys more of a particular cryptocurrency as it falls in value, realizing windfalls by expanding the inventory during deflations.
3. Algorithmic Trading Real-Time Forex Market Scanner Listen to this High Quality Scanner
For beginners finding the right market entry position difficult, Altrady offers its QFL (Quickfingers Luc) Base scanner that can analyze entry and suggest possible trade opportunities.
It has a success rate of more than 95% and offers traders enhanced market simulations.
This characteristic can be used to benefit from support (rebound) to free oneself from reversed positions – it can also suggest maximum profit taking easily.
- The Crypto Base Scanner scans over 100 crypto markets on 10 exchanges 24/7.
- You can use the Base Scanner along with a Signal Bot, which is a simple yet powerful tool that helps you to easily automate your trading strategy.
4. Paper Trading
Paper trading can also help investors to practice various trading strategies without risking capital.
Altrady keeps you up to date with real time alerts via desktop, mobile and email notifications for the prices of cryptocurrency that you’re watching.
Altrady also has a trading academy for its users to improve their trading skills through technical and fundamental trading education.
*Altrady – paper trading now exists on spot markets only
From Binance to Altrady: The Reasons Behind the Switch for a More Complete Trading Experience
Unlike Binance, Altrady provides advanced trading bots and scanners that give it a distinct edge over the other, with more advanced features for traders.
Altrady offers in-built risk-reward ratio calculators, while Binance asks its users to calculate the risk-to-reward ratios on their own.
Feature Comparison Between Binance and Altrady
| Feature | Binance | Altrady |
|---|---|---|
| Virtual Trading Funds | 3,000 USDT | Customizable per user preference (spot only) |
| Simulated Market Conditions | Basic simulation | Advanced, near-real market simulation |
| Trading Tools | Standard trading tools | Advanced tools, including DCA Smart trading bots. |
| Security Features | Basic security | Enhanced security with Vault password |
| Educational Resources | Basic tutorials | Comprehensive trading library |
Traders can connect their Binance wallet to Altrady for spot and futures trading in both live and paper accounts (although the latter only supports spot trading), enabling more functionality than is available on Binance.
Altrady also takes security seriously, the API keys are encrypted and saved securely, and you need to key in a five-word Vault password to re-access them. This extra protection means your trading data and funds are secure.
The Bottom Line
Binance’s futures paper trading is great for beginners to understand how the futures layout works, place orders, and get a sense of how fast and volatile these markets are without risking any real money. It’s easily accessible, and it’s built right into the main Binance platform.
Altrady’s functions are developed out of insights collected from the ‘battlefield’ of thousands of active crypto traders, emphasizing automation, risk management, and sophisticated analysis. You can link a China ETF stock Binance account and use both of them.
Conclusion
The exchange is definitely one of the largest in terms of users in the world with people in the millions using the Binance app and other platforms across countries. It provides a simulation trading tool that lets newcomers to trading see how different strategies can be executed without risking any money.
However, Binance does not have advanced bots and scanners that can provide traders with precise signals and analysis.
This is where Altrady steps in. Altrady that offers a set of advanced trading bots and scanners aimed to increase profitability for traders in a more efficient manner. These functionalities are integrated within Altrady’s platform for free, providing adequate trading tools and user experience than what you would get from Binance.
