The post Who is afraid of crypto derivatives? appeared on BitcoinEthereumNews.com.

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial. Stock trading and investment are never meant for the faint of heart, but one can certainly ease into them without losing their head and hard-earned money. Blue-chip fiat investing is established, is typically easy to understand, and has many avenues where traders can ask for help. It might be slightly boring and slow to grow if only investing in reliable, “sure thing” stocks, but they’re still relatively approachable. Derivatives Derivatives such as futures or options ramp up the intensity, as the investments become more speculative and complex—even more so than just looking at numbers on the screen. The earning potential here is incredibly vast, but so is the potential for loss. This is why derivatives are usually left to institutional investors or experienced traders who have a better grasp of how to navigate these sectors and, to say it plainly, are better equipped to lose their investment. Now, imagine throwing crypto into the mix here. Crypto derivatives are not a new concept, and many leading exchanges and platforms have launched services for experienced traders to try their hand at it. However, entering a speculative market dealing with notoriously volatile assets is not so easy. And just because someone has found success in futures and options trading in fiat doesn’t mean the same fortune will befall them in crypto. Simply put, crypto derivatives are frightening to the average trader. But is there any way to make it less intimidating? Fiat investment services have only become more accessible with the rise of mobile-first products that use simple and understandable language to guide newcomers. Any sensible financial advisor at a retail bank will also likely advise clients to store funds…

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Filed under: News - @ June 30, 2024 9:10 am