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What Is a Cryptocurrency Futures Contract and How Is It Used for Hedging?

A crypto futures contract is an agreement to buy or sell a specific amount of cryptocurrency at a predetermined price on a future date. A miner uses it for hedging by selling a futures contract for the amount of crypto they expect to mine.

This locks in a selling price today, protecting their future revenue from a potential drop in the cryptocurrency's market price. This converts volatile crypto revenue into a predictable fiat equivalent.

How Does a Forward Contract Help the Miner Manage Operational Budget Certainty?
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How Are ‘Time-Locks’ Used in Vesting Schedules for Token Distribution?
How Do You Forecast Future Protocol Revenue for a Crypto Project?