Investing IdeasTop News

Two Sides of the Same Derivative: Comparing Traditional and Crypto Markets

imageCryptocurrency25 minutes ago (Jun 10, 2020 01:20PM ET)

Two Sides of the Same Derivative: Comparing Traditional and Crypto Markets

Crypto derivatives volumes have hit a new record high in May 2020. The early generation of crypto investors mostly worked with a hold-and-sell perspective. With the inevitable evolution of the market and the advent of cryptocurrency derivatives, investors with varied agendas — such as the desire to trade Bitcoin (BTC) volatility in both directions, hedging against major market movements, mitigating risks, etc. — began to flock to this asset class.

Derivatives are complex financial instruments that enable these agendas but often prove to be overwhelming for inexperienced and uninitiated investors to manage. As derivatives are pegged to an alternative asset class such as cryptocurrencies, these instruments are made even more challenging for an average investor to comprehend and thus, makes them more skeptical of these investments as compared to traditional derivatives that are also complex in nature.

Continue Reading on Coin Telegraph

Two Sides of the Same Derivative: Comparing Traditional and Crypto Markets

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.