day103

#Day103 : What are Crypto Derivatives and How to Trade Them?

Crypto derivatives are financial contracts that derive their value from an underlying cryptocurrency, like Bitcoin or Ethereum. Common types include futures, options, and perpetual contracts. These instruments allow traders to speculate on price movements without owning the actual asset.

For example, you can go long if you believe the price will rise or short if you expect a drop. Platforms like Binance Futures make it easy to trade derivatives with leverage, enabling larger exposure with smaller capital.

However, this also increases risk. To start, learn how contracts work, set clear risk limits, and always use stop-loss orders. Derivatives are powerful tools not just for speculation, but also for hedging and portfolio diversification. Mastering them can take your trading game to the next level—just trade smart and stay informed!

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