04-15-2020, 02:24 AM
Why should Traders use Crypto Derivatives as part of their Portfolio?
<!-- SC_OFF --><div class="md"><p>Derivatives have been around for thousands of years but originally started with rate routes. Today Traders use Derivatives in Financial Markets with several ways numerous instruments. Investors typically use Derivatives to hedge a position, to increase leverage or to speculate asset's movement. For instance, 1. Hedging Risk, since the value of the Derivative is linked to the value of the underlying asset, these contracts are primarily used for hedging risks. For example, you buy a Bitcoin Put option to protect your portfolio against decline. You make money if BTC rises or lose money if BTC falls, because you have the right to sell your BTC at a guaranteed price. 2 Speculation. You can speculate on the short term movement of markets by using Futures and Options. 3. Leverage. You don't have to pay the full Traded value, you can purchase the asset by just paying the percentage of total traded value, called the 'margin', making return on capital more attractive. </p> <p>This was the short intro of Why Derivatives Trading is better but the big question is how can a Trader trade Cryptocurrency Derivatives?</p> <p>Well, there are many Exchanges like FTX, Delta Exchange, Deribit, Bybit on which Traders can Trade Crypto Derivatives. But before Trading on any random Exchange, I would suggest all Traders to check whether the Exchange is legit or not, check team's history, check whether Exchange has enough liquidity or not, how quick they are in solving users problems etc. This is hard but the most important part. </p> <p>I've been Trading Crypto Derivatives since last 2 years and have used multiple Derivatives Exchanges, and out of all those Exchanges, I like Delta and Deribit as they're pretty easy and simple to use. Delta has 30+ alts on their platform and allows Traders to Trade Move Contracts which no other Derivatives Exchange offers currently + it provides high liquidity comparatively other Exchanges. Also, Deribit is another Exchange I use sometimes. </p> <p>The motive of writing this short blog is to educate people about Crypto Derivatives and it's benefits. Thanks for reading!</p> </div><!-- SC_ON --> Kind Regards R
<!-- SC_OFF --><div class="md"><p>Derivatives have been around for thousands of years but originally started with rate routes. Today Traders use Derivatives in Financial Markets with several ways numerous instruments. Investors typically use Derivatives to hedge a position, to increase leverage or to speculate asset's movement. For instance, 1. Hedging Risk, since the value of the Derivative is linked to the value of the underlying asset, these contracts are primarily used for hedging risks. For example, you buy a Bitcoin Put option to protect your portfolio against decline. You make money if BTC rises or lose money if BTC falls, because you have the right to sell your BTC at a guaranteed price. 2 Speculation. You can speculate on the short term movement of markets by using Futures and Options. 3. Leverage. You don't have to pay the full Traded value, you can purchase the asset by just paying the percentage of total traded value, called the 'margin', making return on capital more attractive. </p> <p>This was the short intro of Why Derivatives Trading is better but the big question is how can a Trader trade Cryptocurrency Derivatives?</p> <p>Well, there are many Exchanges like FTX, Delta Exchange, Deribit, Bybit on which Traders can Trade Crypto Derivatives. But before Trading on any random Exchange, I would suggest all Traders to check whether the Exchange is legit or not, check team's history, check whether Exchange has enough liquidity or not, how quick they are in solving users problems etc. This is hard but the most important part. </p> <p>I've been Trading Crypto Derivatives since last 2 years and have used multiple Derivatives Exchanges, and out of all those Exchanges, I like Delta and Deribit as they're pretty easy and simple to use. Delta has 30+ alts on their platform and allows Traders to Trade Move Contracts which no other Derivatives Exchange offers currently + it provides high liquidity comparatively other Exchanges. Also, Deribit is another Exchange I use sometimes. </p> <p>The motive of writing this short blog is to educate people about Crypto Derivatives and it's benefits. Thanks for reading!</p> </div><!-- SC_ON --> Kind Regards R