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!

Disclaimer: The content is strictly for your general information only. No part of the content we provide constitutes financial advice, legal advice, or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion.

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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

[JunkBondTrader]

Pro tip: If you can't trade succesfully over time at 1x, adding leverage will only increase the rate at which you lose money.

[jaybehz]

I got soo scared of derivatives before I even learnt about it, cos of others experiences. Well, I'm proud to tell you that I still don't know how it works till today. But I think I'll start making gradual effort as to how it all works

[nathanpieterse]

Have "mercy" on " frank "

[rapharsierra]

Efficient video basic explanation of perpetuals. Thank you 🙏

[leesweets]

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?

[Timefades]

Perpetual is very tricky to trade because manipulation and less of an edge, however the crazy amount of leverage can really profit with hardly any money

[michaelwolk]

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

[Kinggibbz]

Good stuff, it is something one should really pay attention to and learn the principles because accumulating loss is not a good thing in business.

[iamolaoluwa]

Well explained. Thanks for this amazing tutorial beautiful mama ❤

[KenG-nxfm]

What are the best app’s for perpetuals in US?

[cjeremie]

So what then is the difference between CFD's and Perpetual Futures? Both don't expire and both have leverage.

[walternokomashala]

Ok I understood perfectly in the beginning, now teach me how do i know if the trade will be a buy or a sell specifically on futures!?!?

[riznordin.x]

Tq. A good start but pls make another with more elaboration and tips to get started pn the platform and the terms, buttons explained.

[nicool]

and what about hold and become a liquidity provider for a perpetual protocol?

[DanielS-zqrr]

Whats the point of hedging with contracts, like in the final example? You'd break even no matter what happens to the asset, there'd be no point to invest

[estherlamikanra]

I think you people shoud do actual practical examples that will make people understand. Like trading a random pair in the video and people will follow along. This made me hella confused

[Vinni-K]

main reason why i got liquidated a lot is because i played around with too high of a leverage
high leverate is like betting, either you loose everything in a minute or you win big. but tbh you shouldnt do unrealistic leverages

[warnerlohse]

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

[GideonMitchell]

I began my investment journey at the age of 27, primarily through hard work and dedication. I'm to share that my passive income exceeded $100k in a single month for the first time. This success reinforces the importance of the advice mentioned earlier it is not about achieving quick wealth, but rather ensuring long-term financial prosperity

[delikanis-crete]

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