Crypto derivatives like futures, options, and perpetual contracts have become essential tools for traders. This article explains how derivatives work and how they help manage risk in volatile markets.

  • What Are Crypto Derivatives?: Define derivatives as financial contracts whose value is derived from an underlying asset, such as Bitcoin or Ethereum, allowing traders to speculate on price movements.

  • Types of Crypto Derivatives: Discuss futures, options, and perpetual contracts, highlighting how each allows traders to hedge against price volatility or leverage their positions.

  • Popular Platforms for Derivatives: Highlight platforms like Binance, Bybit, and FTX (before its collapse), explaining their role in offering a wide range of derivative products.