Beyond Voting, What Are the Different Types of Financial Derivatives Used to Manage Cryptocurrency Price Volatility?

The primary derivatives used are futures, perpetual swaps, and options. Futures contracts lock in a price for a future date, providing a clear hedge.

Perpetual swaps mimic futures but never expire, requiring a funding rate mechanism to anchor the price to the spot market. Options give the holder the right, but not the obligation, to buy or sell at a set price.

These tools allow market participants to take leveraged positions or hedge risk.