What does Bitcoin futures mean? (What are Bitcoin futures?)

What does Bitcoin futures mean? According to bitcoinist news, Bitcoin futures ar

What does Bitcoin futures mean? (What are Bitcoin futures?)

What does Bitcoin futures mean? According to bitcoinist news, Bitcoin futures are a very complex financial product. In the traditional market, the price of Bitcoin fluctuates greatly, but when you trade, you cannot always accurately predict the market trends. However, as time goes on, the price may become exceptionally stable. Therefore, Bitcoin futures can be seen as an investment strategy, as well as a hedging tool or speculative tool to obtain funds. For investors, using futures contracts can result in higher returns on investment.

What are Bitcoin futures?

Bitcoin futures is a digital asset trading platform based on the Ethereum blockchain. The platform is managed by the Chicago Mercantile Exchange Group (CME Group), which has launched its own Bitcoin options contracts on the Chicago Mercantile Exchange. These contracts are commonly referred to as “physically settled” (hodler assets).

Bitcoin futures are different from traditional financial instruments such as stocks and bonds. They are composed of US Treasuries. This means that investors can buy, sell, or hold securities representing a value of $1 trillion without the need for a bank account. Therefore, they can use their capital to hedge risks and make profits, while also earning interest. Without Bitcoin futures backed by traditional currencies, investors can only invest in volatile assets such as gold or silver.

Bitcoin futures is a completely open market that anyone can participate in, but it does not have mandatory requirements or market manipulation mechanisms. It is created in a way similar to spot trades and is not influenced by central regulatory authorities because each user exists equally. It allows anyone to open an account for themselves and trade under specific conditions, ensuring safety and stability. By definition, this product can be bought and sold in one place or traded on an exchange like other derivatives. (AMBCrypto)

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/08/17/what-does-bitcoin-futures-mean-what-are-bitcoin-futures/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.