What Are Crypto Derivatives? (Perpetual, Futures Contract Explained)


What are crypto derivatives? The word derivative implies that it is derived from something. Crypto derivatives, therefore, derive their value from cryptocurrencies. They exist as financial contracts that two parties enter into to speculate on the underlying cryptocurrency’s price on a future date.
Let’s dive into derivatives and learn what exactly is perpetual and futures contract!

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Timestamps:
0:00 – Intro
0:27 – What are crypto derivatives?
1:52 – What are futures?
3:59 – What are perpetual contracts?
5:06 – Leverage opportunities
7:15 – Closing thoughts

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#Derivatives #Perpetual #Futures #Options #Swaps #crypto #DeFi

20 gedachten over “What Are Crypto Derivatives? (Perpetual, Futures Contract Explained)”

  1. Here is where you can tell the creators of this video are noobs. Understanding that someone else takes the opposite side of your trade, she forgot to mention it could be another trader or the exchange

  2. Im no financial expert, but your description of a future (a subject for which I know nothing about) sounds a lot like a simple options contract. If thats not true then what is the difference? Im assuming that, like options, there are conditions for which a contract can expire null and neither party is forced to buy and sell. If that is not true then why wait a month; why not just buy immediately and hold for your prediction to come true?

  3. My lady me being newby trader i have watched thousands of trading vids and quite honestly i never enjoyed them like i enjoyed your lovely explanation 😊

  4. I am working on getting into the perpetuals. I have been spot trading! Thanks for the informative video and your time and sharing!

  5. Why not just sell cash secured puts on stocks you want to own anyway?

  6. Finally i understand it.. From a seeet smile of a good❤️heart woman 🌹

  7. Having people buy paper crypto without actually holding them is not good for the crypto industry. That means people are gang and losing money without adding to the liquidity

  8. I believe the saying goes you can only lose money play selling your Bitcoin

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