Digital Bytes

Digital Bytes

Share this post

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

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

Jonny Fry's avatar
Jonny Fry
May 27, 2025
∙ Paid

Share this post

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

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…

Keep reading with a 7-day free trial

Subscribe to Digital Bytes to keep reading this post and get 7 days of free access to the full post archives.

Already a paid subscriber? Sign in
© 2025 Jonny Fry
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share