Everything You Need to Know About Crypto Derivative

A crypto derivative is a financial tool whose value is based on an underlying cryptocurrency or digital asset. 

One common type of crypto derivative is the "perpetual futures" contract. This contract doesn't have an expiration date.

The value of a crypto derivative is derived from the value of the underlying cryptocurrency. For instance, perpetual futures contracts often track the price of Bitcoin.

 Crypto derivatives involve contracts between two or more parties.  

The main types of crypto derivatives are perpetual futures, traditional futures, and options. 

Unlike traditional futures contracts, perpetual futures don't have a predefined expiration date.

 Crypto derivatives often involve leveraging, which can amplify gains but also increase losses, making them a high-risk investment. 

Due to their complexity and risk, crypto derivatives might not be suitable for all types of investors