Cryptocurrency Derivatives: Frequently Asked Questions Answered

Is it possible to trade derivatives with only a small investment capital?

Large futures trading platforms such as CME and CBOE have fairly high entry thresholds and strict KYC requirements. But derivatives trading is also available for traders with start-up capital.

For example https://redot.com/derivatives/ ensures nearly 24/7 uptime and enables HFT throughput via FIX and REST API, supporting a redundant server-failure-proof infrastructure. The platform is microservice-based, providing independence of modules giving the system further resilience. Margin rates are based on market factors such as volatility which are recalculated in real time and provide fair requirements while allowing high-leverage to maximize market exposure and returns

How do derivatives affect the value of cryptocurrencies and the market as a whole?

Many experts are sure that the appearance of derivative assets on the cryptocurrency is an important step towards their mass implementation. It is expected that investors will become less skeptical of digital assets, which in turn will have a positive impact on the level of demand in the market. As a result, this may be one of the reasons for the increase in the value of digital money in the future.

The release of traditional financial instruments on digital assets also indicates their recognition by regulators as an object for investment. This is confirmed by the fact that bitcoin futures are actively used in the financial market, which has the most stringent asset requirements.

The emergence of derivative assets in the cryptocurrency market has opened up additional opportunities and benefits for traders. Already today, these tools are actively used by thousands of people around the world, and this area is expected to continue to grow at a rapid pace, contributing to the popularity and increase in the value of digital assets. This integration of traditional financial instruments into the cryptocurrency market was especially appreciated by mainstream traders who hesitated to enter the crypto market for a long time, as well as those who were looking for high-quality tools for hedging and risk diversification.