What are bitcoin futures trying to do?
Using Bitcoin futures to trade Bitcoin can be helpful in a number of ways. The main advantages are:
Futures on the cryptocurrency can be used to check the price if you want to buy or sell it.
People who are worried about the risks of trading on exchanges that aren’t controlled can trade Bitcoin on a clear, regulated market.
Traders can control their risk with Bitcoin futures, which let them sign contracts to sell Bitcoin at a set price. People who are worried about how the market is right now might find this helpful.
When traders use Bitcoin futures to bet on the price of Bitcoin in the future, they can use leverage to trade with more money than they actually have. This is a powerful tool for traders, but if the market goes against them, it can go very wrong.
The future of Bitcoin futures will depend on the general trend of the cryptocurrency market, the amount of demand for these financial instruments, and what regulators and other stakeholders do. Even though it is hard to know how Bitcoin futures will affect the cryptocurrency market in the long run, it is clear that they will have some kind of effect.