The cryptocurrencies and it's deriatives
If you look towards traditional derivates in the financial market you can find that the volume of old derivates is large enough against spot trading, current crypto-based derivates are small enough in volume, if you are going to evaluate the cryptocurrency derivates according to the traditional financial market you couldn't evaluate the development potential, but you could extract the range of derivates by multiply with the native asset, crypto derivates also introduce old-fashioned products like stocks and bonds, the valuation of crypto derivates should not be limited to the native crypto asset but rather than the entire financial market. Normally traditional derivates can be divided into four types
Forwards
Futures
Options
Swaps
Due to the narrative of crypto-asset, forwards and swaps are not possible in the cryptocurrency market, the derivates of cryptocurrency can accommodate four types of assets for example stocks, bonds, foreign exchange, and commodities, from the perspective of trading, the crypto-assets can be divided into on-exchange trading and over-the-counter trading. If you are going to further deep into the cryptocurrency derivatives market you can find that the mainstream derivatives are futures contracts additionally these future contracts divided into delivery contracts and perpetual contracts
Delivery Contracts
Delivery contracts are those types of contracts that have expiration dates for the current month and the specific period, if the problem generated due to market conditions then these contracts divide the liquidity which many experts refer to flow of funds into the market which supports the market cycle.
Perpetual Contracts
The science of perpetual contract in the crypto world is highly innovative and unique, these contracts have no specific delivery date, and the fund rate is settled within 8 hours duration in order to keep the price equal to the price of spot trade, from the perspective of the investors, perpetual contracts are equal enough to spot and can be leveraged and shorted, therefore these contracts are so much popular among investors.
Coinbase
If you do the trade with Coinbase stock, you can freely trade tokens with only Coinbase equity and gain unlimited granularity over your multiple crypto assets. In case of your outstanding judgment, you can trade long or short without any barriers., if your judgment is failed the risk is only yours.
Mass Migration
The traditional financial market now entered the cryptocurrency realm the crypto market started to replace the old-fashioned financial market, the influx of funds from the traditional market promoted the ambition of cryptocurrencies to completely take over the financial market, traditional financial products now package in crypto wrapper, the crypto derivates can be traded 24 hours and seven days a week and without any interruption and any intervention.
As compared to traditional financial markets which are open or close according to their local time and this process iterated all over the world, before Bitcoin there is no synchronization among global financial markets, but after Bitcoin, the global financial market become synchronized and decentralized
Risk and Fear
The crypto derivates are less risky compare to spot trading, the design of financial products in the crypto world is highly efficient and accurate, the associated risks are low cost and minimum
Blockchain brought a revolution in the financial world, anyone, anywhere can trade 24/7 without interruption, the mapping of financial assets with blockchain is easy, the security and the problem of ownership are gone forever.