How does the definition of futures contracts in economics apply to the cryptocurrency industry?

1 answers

• divadOct 29, 2020 · 5 years ago
  At BYDFi, we believe that futures contracts play a crucial role in the cryptocurrency industry. These contracts provide a way for traders to hedge their positions and manage risk. For example, if you're a miner and want to secure a certain price for your mined Bitcoin, you can enter into a futures contract to sell your Bitcoin at that price in the future. This way, you can protect yourself from potential price fluctuations. Additionally, futures contracts also attract institutional investors who may not want to directly hold cryptocurrencies but still want exposure to their price movements. Overall, futures contracts bring more liquidity and stability to the cryptocurrency market.
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