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What Is a Derivative in the Context of Cryptocurrency?

A crypto derivative is a contract whose value is based on the price of an underlying cryptocurrency.
Greeks.Live22.11.25

What Is a Derivative in the Context of Cryptocurrency?

A cryptocurrency derivative is a financial contract that derives its value from the price of an underlying cryptocurrency. The most common types of cryptocurrency derivatives are futures, options, and perpetual contracts.

These contracts allow traders to speculate on the future price of a cryptocurrency without having to own the underlying asset. They can also be used for hedging purposes, to protect against losses in a cryptocurrency portfolio.

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