Derivatives, Futures and Protecting Against Bitcoin's Risks
Many companies and individuals are banking on bitcoin's long-term prospects, hoping that the currency's value will continue to rise. According to a recent CoinDesk poll, 56% of bitcoiners think that the price of one BTC will reach $10,000 in 2014. But wait - hasn't it been made crystal clear that bitcoin is volatile? Isn't it true that exchanges have vastly differing prices? How can investors avoid the hazardous and risky attributes of bitcoin? Ways to protect value for those holding bitcoin (without exchanging it for fiat) must emerge. Hedging, a common financial procedure used in....
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Crypto derivatives are now among the most common financial products on any cryptocurrency exchange or trading platform, thanks to increased interest among the trading community. Trading crypto derivatives has its own advantages as it allows users to mitigate volatility-associated risks and hedge against potential losses. There are various derivatives products that include Swaps, Futures, Forwards, […]
Crypto traders love to “ape” and make “degen” investments using high leverage in futures markets, but most traders fall victim to these three key mistakes. Many traders frequently express some relatively large misconceptions about trading cryptocurrency futures, especially on derivatives exchanges outside the realm of traditional finance. The most common mistakes involve futures markets’ price decoupling, fees and the impact of liquidations on the derivatives instrument.Let’s explore three simple mistakes and misconceptions that traders should avoid when trading crypto futures. Derivatives....
Cryptocurrency exchange Coinbase has filed an application with the National Futures Association (NFA) to offer futures and derivatives trading on its platform. The exchange says its new offerings aim to “Further grow the cryptoeconomy.”
Coinbase Registers to Offer Crypto Futures and Derivatives Trading
Coinbase Global Inc. (Nasdaq: COIN) announced Wednesday via Twitter that it has filed an application with the National Futures Association (NFA) to register as a Futures Commission Merchant (FCM). The exchange wrote:
This is the next step to broaden our....
On June 27, Coinbase Derivatives Exchange (formerly Fairx exchange) announced it will launch its first crypto derivatives investment vehicle pegged to the value of 1/100th of a bitcoin. The new “nano bitcoin futures” product will be listed under the ticker “BIT.” Coinbase derivatives are regulated by the Commodity Futures Trading Commission (CFTC).
Coinbase Introduces BIT, a Futures Product Tied to 1/100th of a Bitcoin
Coinbase is getting into the world of crypto derivatives as the Coinbase Derivatives Exchange has announced the launch of BIT, a nano....
The Commodity Futures Trading Commission is set to meet this October to discuss its jurisdiction over bitcoin futures. Through its Global Markets Advisory Committee, the CFTC will have a meeting with two panels, all of which will be open to the public. The meeting will take place on October 9th, 2014 at the CFTC Headquarters in Washington DC. The upcoming meeting marks the first time that the regulator is publicly wading into the area of bitcoin regulation. There has been a growing demand for bitcoin futures from global merchants, miners and hedge funds for an efficient hedging tool. In....