How to Trade Inverse Crypto Futures Contracts on Bybit

Futures contracts allow traders to lock in the future price of an asset, enabling potential profit from market movements without direct ownership. Bybit’s inverse futures offer a unique edge: they use Bitcoin (BTC) or Ether (ETH) as both collateral and settlement currencies, providing an opportunity to grow crypto holdings directly, instead of holding stablecoins in standard crypto futures contracts.

This article explains the workings of inverse futures contracts on Bybit, including key features, trading steps and essential risk management techniques.

Key Takeaways:

• Inverse futures use BTC or ETH as collateral, allowing traders to increase their crypto exposure and avoid USD conversions.

• Inverse futures contracts are ideal for long-term strategies, as they can protect value in BTC and USD terms.

• Trading inverse futures doesn’t incur funding fees, making it cost-effective for extended holdings without recurring costs.