The derivatives of the cryptocurrencies are gaining more and more strength in the market of encryption. In fact, for some analysts, these could boost of important to the whole industry. But, what do you say derivatives of cryptocurrencies? and why are they gaining so much importance? In this article I explain it.
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Derivatives of the cryptocurrencies: a new way of looking at the encryption
Although the market for crypto is becoming established as an alternative to the common means, in some cases, taking ideas from the traditional market. This is the case of the so-called “derivatives”. The result of the actions, are a type of offers that allow people to bet on the value of corporations that are traded on the stock exchange. What’s unique about this is that it allows you to invest in a basket of shares of large cap as FANG, which combines the actions of the four actions of high-performance technology on the market. This commercial tool has been shown to be useful in terms of the stock market. Even to overcome conditions subsequent to periods of crisis. In the market of cryptocurrencies, derivatives are financial contracts between two or more parties. These “derived” their value from the digital currency’s underlying. In other words, it is an agreement to buy or sell a criptomoneda in particular at a fixed price and specific time. The most popular form of these derivatives are Future of Bitcoin, which have become more and more adoption around the world.
Boom of the derivatives
The demand for these derivatives cryptographic not only maintained, but has increased with time. In fact, it is worth noting that June of 2019 was the best month for the volume of Future of Bitcoin at the CME since its launch. Negotiated close to 300,000 contracts in the period of 31 days, marking an increase of 27% compared to the volume of the previous month. The growth of this type of derivatives has been such that even today announced the launch of a new instrument in January: options on the Future of Bitcoin. The derivatives of cryptocurrencies represent a particularly important element for institutions. These should be that are part of an important technique of management of risks. Specifically, they offer protection against the infamous volatility of the cryptocurrencies. In addition, they enable the operators to compensate for their potential losses by using “put options” and coverage, another essential tool in the arsenal of institutional market. Because of this, it can be said that currently derivatives of cryptocurrencies are in high demand and the institutions seem to be the main customer. Therefore, their rise may help boost the entire industry cryptographic. The following two tabs change content below. I am a student of International Studies, interested in new technologies and their impact on the world. A true believer that tenacity is the foundation of success.