|Greetings to all!| |-|

Asslamo-alikum to all of my friends of **Steem PussFi Community**.Is everything is ok? my friends.I am very fine and hoping mine friends are fine.Today's I'm here again for posting about cryptocurrency.Today's topic for posting is all about crypto derivatives.I will explain their benefits and how actually they can work, i will explain all the major points. |

Crypto Derivatives

| |-| ![17294995285125319547405269279117.jpg](https://cdn.steemitimages.com/DQmdhE6n3RSnhS7tryGkRLGm1gVJt3Pq1k7HgWyShqG75YG/17294995285125319547405269279117.jpg) ^{[Pixaby](https://pixabay.com/photos/stock-market-chart-phone-stocks-6693060/)} **Overview**:- In Cryptocurrency, crypto derivatives are the contacts , which are basically the financial contract and they drive their value from the currency that are underlying with the top crypto coins like Bitcoin or Ethereum.On the other hand, crypto derivatives are also known as the crypto exchanges.Crypto derivatives provide different type of financial contracts.

Crypto derivatives are a financial contract that exposes an investor to price fluctuations or market movements in the cryptocurrency market and provides an opportunity for the investor to profit from it.Crypto derivatives informs the cryptocurrency investor about any price fluctuation or market movement that occurs in the market without having to buy the crypto.

Explanation:- There are different types of contracts in crypto derivatives, the first one is the futures contract, the second one is the options contract and the third one is the mutual sweap.The first one is the futures contract. Gives a specific date and a target date for investing in cryptocurrency that can be profitable.Also, the option contracts provide any investor with complete data to fully explore the cryptocurrency without leverage that the investor can't face loses. ![17294995741354042359583936523087.jpg](https://cdn.steemitimages.com/DQmb4X17mXuow4BcrkWBogwfSHxSnmNaMsK42HYkaCqbR1r/17294995741354042359583936523087.jpg) ^{[Pixaby](https://pixabay.com/photos/stock-market-chart-ipad-stocks-6693061/)}

Crypto Derivatives are basically cryptocurrency exchanges such as Binance OKX and ByBit and BitGate. All cryptocurrency exchanges are called Crypto Derivatives where people invest, trade, and have many opportunities. People can generate profit from all the crypto exchanges there are different types of data and people do their trading and investment through it from different resources and by searching different ways which prove to be profitable for them.

There are many derivatives of cryptocurrencies that provide people with different options and opportunity to invest at this time after doing their thorough research so that they can make a profit.Apart from this, crypto derivatives also have a lot of risks, such as the risk of potential loss, and also the risk of regulatory uncertainty, so the investor should research everything properly and then invest accordingly to the research.

![17294996113468193743562385211207.jpg](https://cdn.steemitimages.com/DQme5hPYQEnDQkiB6F6thaBiVbKX2jYTJuQN6pGdAwLtSQr/17294996113468193743562385211207.jpg) ^{[Pixaby](https://pixabay.com/illustrations/cryptocurrency-crypto-bitcoin-6601591/)} Benefits:- Crypto Derivatives provides many benefits to the users, such as opportunity to the investor to exposure cryptocurrency price fluctuation.They also provide more opportunities to trader and investors for making better trade.They also provide different types of contacts that reduce the risk of frauds or scams.They also provide data to investor for risk management.

They provide the leverage in cryptocurrency trades where the investor can make profit more than 20%.They provide the complete history and analysis of the coin where we want to invest.Major benefits is that it attracts more investors to invest in cryptocurrency.It provide a major rule in the regulatory and growth of crypto market.

Conclusion:- So friends, that's all about derivatives in cryptocurrency.These are the financial contracts that drive their value from the cryptocurrency without underlying.Provide the investors the opportunities for doing investment or for trading.They include some risk that i have explained.These are more beneficial and i have explained their benefits.I hope mine all friends will understand about crypto derivatives after reading this post.Good Bye!