What Are Crypto Derivatives?
Crypto derivatives are financial contracts that derive value from an underlying cryptocurrency.

Types of Crypto Derivatives:
Futures – Contracts to buy/sell crypto at a fixed future price.
Options – The right (not obligation) to buy/sell crypto at a specific price.
Perpetual Contracts – Futures without an expiry date (e.g., Binance Perpetuals).
Why Use Crypto Derivatives?
Hedging – Reduce exposure to price drops.
Leverage trading – Multiply gains (but also losses).
Speculation – Trade on future price movements.
Risks:
Liquidations – High leverage can wipe out positions.
Exchange risks – Some platforms manipulate funding rates.
Popular Crypto Derivatives Exchanges:
Binance Futures
Bybit
dYdX
Crypto derivatives are high-risk, high-reward, best for experienced traders.