Crypto futures, like stock options and commodity futures contracts, provide protection against volatility and adverse price movements in cryptocurrency. Crypto futures also serve as a proxy tool for investors to speculate on the future pricing of cryptocurrency. It can also be used to hedge against the price fluctuations of cryptocurrencies.
Here are the benefits of Cryptocurrency Futures:
- Liquidity: The crypto futures market is liquid, which makes it less risky as traders can enter and exit their positions with minimal slippage.
- Portfolio Diversification: Crypto Futures enables you to diversify your portfolio and trading strategies and generate more profits.
- Flexibility: You can open a position in a crypto futures contract using stablecoins such as USDT or any other cryptocurrency, and any profits will be settled in the currencies you specify.
- Leverage: Crypto futures help you to get exposure to various cryptocurrencies at just a fraction of the total cost.