What Are Crypto Derivatives? (Perpetual, Futures Contract Explained)
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- Опубліковано 5 сер 2024
- What are crypto derivatives? The word derivative implies that it is derived from something. Crypto derivatives, therefore, derive their value from cryptocurrencies. They exist as financial contracts that two parties enter into to speculate on the underlying cryptocurrency's price on a future date.
Let's dive into derivatives and learn what exactly is perpetual and futures contract!
Disclaimer: The content is strictly for your general information only. No part of the content we provide constitutes financial advice, legal advice, or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion.
Links Mentioned:
Explore crypto exchanges - www.coingecko.com/en/exchanges
Timestamps:
0:00 - Intro
0:27 - What are crypto derivatives?
1:52 - What are futures?
3:59 - What are perpetual contracts?
5:06 - Leverage opportunities
7:15 - Closing thoughts
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#Derivatives #Perpetual #Futures #Options #Swaps #crypto #DeFi
Pro tip: If you can't trade succesfully over time at 1x, adding leverage will only increase the rate at which you lose money.
Quicker I lose my money, the quicker I can move on with other things in my day
@@darkfangulaslol 😂😂😂
Wowwwwwwwww.thanks
🤣🤣@@darkfangulas
i got profit at first later I lost all money
I got soo scared of derivatives before I even learnt about it, cos of others experiences. Well, I'm proud to tell you that I still don't know how it works till today. But I think I'll start making gradual effort as to how it all works
😂😂😂tf
@@gamingwithdingoRight? Confused the hell outta me 😂
Have "mercy" on " frank "
Yes, Because mostly people are like 'Frank' in the market.😅
Efficient video basic explanation of perpetuals. Thank you 🙏
well put together and informative
My lady me being newby trader i have watched thousands of trading vids and quite honestly i never enjoyed them like i enjoyed your lovely explanation 😊
Thanks for the explanation.
I like the way she explains crypto. 👍
Looking good 🔥
Im no financial expert, but your description of a future (a subject for which I know nothing about) sounds a lot like a simple options contract. If thats not true then what is the difference? Im assuming that, like options, there are conditions for which a contract can expire null and neither party is forced to buy and sell. If that is not true then why wait a month; why not just buy immediately and hold for your prediction to come true?
With options, as the name implies, you are not obligated to purchase/sell the underlying asset at maturity. Regarding the second question, I believe it has to do with the leverage, which incurs daily costs, as you are technically borrowing funds during the lifetime of that operation.
@@nogueiranatan Are you saying a future is like buying stock on margin, accruing interest, and hoping to flip for profit before the bill comes?
great vid!
nicely explained
Excellent 👍
Nyc and very informative
Nice explanation
I am working on getting into the perpetuals. I have been spot trading! Thanks for the informative video and your time and sharing!
what apps provide this in the US?
Tq. A good start but pls make another with more elaboration and tips to get started pn the platform and the terms, buttons explained.
Finally i understood
Gracias
I understand leverage, but what does QTY have to do with anything?
Very nice🎉🎉🎉
Well explained. Thanks for this amazing tutorial beautiful mama ❤
Ok I understood perfectly in the beginning, now teach me how do i know if the trade will be a buy or a sell specifically on futures!?!?
Good stuff,it is something one should really pay attention to and learn the principles because accumulating loss is not a good thing in business.
Truth is that some people neglect good information that can serve them the risk of losing funds in the market. truly a nice stuff, possibly for the best contact a broker.
Also one must try and have a primary knowledge about trading,this can also guide the learning process
@Stephaniemac a proper guide from a professional helps a lot,I have really seen improvement now thanks to Bianca Harley Doran
So what then is the difference between CFD's and Perpetual Futures? Both don't expire and both have leverage.
Lovely
Perpetual is very tricky to trade because manipulation and less of an edge, however the crazy amount of leverage can really profit with hardly any money
main reason why i got liquidated a lot is because i played around with too high of a leverage
high leverate is like betting, either you loose everything in a minute or you win big. but tbh you shouldnt do unrealistic leverages
What are the best app’s for perpetuals in US?
Super
Very super
Which exchanges offer derivatives?
Most of the exchanges do offer them, some main ones are Binance and FTX.
I use kucoin
As long as they allow you to leverage they are offering you derivatives.
Still don’t get the perpetual
Whats the point of hedging with contracts, like in the final example? You'd break even no matter what happens to the asset, there'd be no point to invest
and what about hold and become a liquidity provider for a perpetual protocol?
i say that because i did not understood perpetuals, i think i must dig deeper into the subject
@@nicool1312 you must be thinking of funding rate perhaps? when the perpetual price is off from the index price (actual spot price), the side that is in the black/profits (shorts or longs) pays a small fee to the losers, every so often, usually 8 hours, to get the price back to the index price. You can hold a losing side of a perpetual on purpose and offset that with an opposite spot trade, so they cancel out, and collect funding fees.
I think you people shoud do actual practical examples that will make people understand. Like trading a random pair in the video and people will follow along. This made me hella confused
I began my investment journey at the age of 27, primarily through hard work and dedication. I'm to share that my passive income exceeded $100k in a single month for the first time. This success reinforces the importance of the advice mentioned earlier it is not about achieving quick wealth, but rather ensuring long-term financial prosperity
Investors should exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields
This is superb information,as a noob it gets quite to handle all of this and staying informed is a major cause, how do you go about this are you a pro investor?
Wow that's stirring! Do you mind connecting me to your advisor please. I desperately need one to diversify my portfolio
What differentiates the poor from the rich is what both do with the information they get. While the poor doubt almost all the information they find, the rich gets richer by doing things that the poor did not do when they get information. For financial success and investing, always work with a financial advisor who is ready to help you succeed
@@VictoriaLisa959Bianca Harley Doran
Finally i understand it.. From a seeet smile of a good❤️heart woman 🌹
good video but major lack of depth and explanations
It's fascinating to observe a futures market fueled primarily by credit. It's a realm where two non-existent entities collide: credit, which represents money that doesn't yet exist, is poured into a future that is also non-existent.
And you wonder why the world is shit.
Why not just sell cash secured puts on stocks you want to own anyway?
I believe the saying goes you can only lose money play selling your Bitcoin
_🌤11AM Dec 18th 2022_
The ad voice sound like got damn AI.
!
Bettwr believe imma experiment.
I love the grounded reality of this channel, its normal to see so many investors panic amid a worsening bearish market but it is also important to note that the market situation is nothing new in the crypto world. Several factors are driving negative sentiment in the stock and crypto markets right now including inflation, a shaky stock market, rising interest rates, and recession fears. As a result, bitcoin has dropped significantly from its all-time high, breaking below several key technical levels. As a crypto investor, the current situation might seem bleak. However, there are several tried and tested expert-suggested investment strategies that can help you accumulate the current crypto storm, in few weeks of implementing trading with accurate signals directly from Bonhomme Russo, I have been able to accumulate over 11 btc despite the current state of the market.
..How can i reach Bonhomme?
@@kenny5547
He is @Bonhommerusso VlA TELE GRAM) … no added letters or numbers. careful of impersonators...
Access to good information is what we need to progress financially in life. here's a good one and I am grateful.
I am still learning from him, he is very experienced and with accurate prediction.
The suggestions Bonhomme Russo presented, on trading signals saved me big time from the disaster. so, thanks a lol
Yeah hold on until SBF will liquidate it hahaha
Here is where you can tell the creators of this video are noobs. Understanding that someone else takes the opposite side of your trade, she forgot to mention it could be another trader or the exchange
Which is why in Futures your upside is much more and which is why the EXCHANGE HAS all the risk. WHEN your take profit hits, the counter parties trade remains open which should not be unless the exchange is on the opposite aide of the order or has been all along.Lol 😝 Explain that part!
When explaining these things speak slower this is the disadvantage of all how to videos on bitcoin
press shift+< for slower playback. Conversely shift+> speeds it up.
Derivatives are scam
why
Having people buy paper crypto without actually holding them is not good for the crypto industry. That means people are gang and losing money without adding to the liquidity
No there are costs