Chapter 14

Cryptocurrency Futures and Options


Bullet Getting to know the basics of futures and options

Bullet Trading cryptocurrency derivatives

Futures and options are two forms of a general financial instrument called derivatives. They derive their value from the price action of something else — traditionally, from financial assets like stocks, commodities, fiat (government-backed) currencies, and other market indexes. As the cryptocurrency market becomes more popular, different cryptocurrency derivatives have been popping up and are accessible to individual traders.

In this chapter I first overview the basics of futures and options trading, and then I explore how they work in the crypto market.

Tip At the time of writing, many regulations exist around such assets, so you can invest in them through a handful of brokers and exchanges around the world. In the United States, Bitcoin futures trading is available on a handful of brokers and exchanges such as these:

Get Cryptocurrency Investing For Dummies now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.