The other side of crypto: a dive into options and futures

Crypto futures are standardised contracts obliging traders to buy or sell an asset at a set date and price, and options give the holder the right (but not the obligation) to buy or sell at a specified price. Think of them as insurance or a one‑sided bet on future price moves. Perpetual contracts are similar to futures with no expiry - they trade continuously and are maintained by periodic funding payments between longs and shorts so allowing constant leverage without settlement dates. On the other hand, futures have fixed-term contracts to trade Bitcoin, Ether, etc. at a future date, and are often used for hedging or speculation. Finally, option contracts grant an option to buy (calls) or sell (puts) at a strike price (a pre-agreed price in the future). Buyers pay a premium but are not obliged to buy or sell the security on which they have taken an option if the trade proves to be unprofitable. Major venues for these products that are linked to cryptocurrencies include Binance, Deribi…