Derivatives
Digital Asset derivative protocols offer financial instruments whose value is derived from underlying assets, such as futures, options, and swaps. These instruments allow users to hedge risks, speculate on price movements, and gain exposure to various assets.
What You Need To Know
Crypto derivatives are transforming how traders interact with digital assets by offering innovative tools for hedging risks, speculating on prices, and enhancing liquidity within both centralized and decentralized ecosystems. As blockchain technology continues to evolve, these instruments are becoming more accessible while integrating seamlessly into decentralized finance platforms. Since overall market size isn't as large as traditional markets, volatility is a major risk.