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Crypto Derivatives

Crypto derivatives are financial instruments whose value is derived from underlying cryptocurrency assets such as Bitcoin or Ethereum. Examples include futures contracts, options, swaps, and other complex financial products that allow investors to speculate on the price movements of cryptocurrencies without owning the underlying assets.

Crypto derivatives provide opportunities for hedging, leverage, and risk management in the volatile cryptocurrency markets, but they also pose risks such as counterparty risk, liquidity risk, and regulatory uncertainty.