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:

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