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These derivatives are one of the financial instruments most used by cryptocurrency traders seeking to indirectly expand into the bitcoin market.
Table of other cryptocurrencies.
1. bitcoin ETP?
2. Bitcoin ETFs?
3. Bitcoin ETNs?
4. trading?
5. (CFD) of bitcoin?
All of these are known as derivatives of any financial instrument, this value is associated with another asset or basket of assets, which is called "underlying assets."
Products are very well known and popular in the bitcoin markets and all those cryptocurrencies, these allow you to earn assets without the need to directly buy these coins.
But as in other products that are traded in the financial markets, these derivatives function as a monetary and multi-party contracts, which can be used to be tangible and function smoothly in their operations, just like exchanging the currency or making it. liquidate.
This primary idea is that, through a contract, buyer clients can generate their future income with all the variations in the prices of the underlying assets and all those sellers receive their liabilities for their commercialization and benefit.
It is already notable that Europe may be the global center of the Bitcoin industries.
I give the example, in the case of one of the derivatives of bitcoin, this product will be governed by the price of cryptocurrencies as the point of reference to emulate it in its own markets.
This allows all traders to benefit from all asset movements.
In this way, those investors can speculate on the prices of cryptocurrencies without having the need for them to directly possess these funds in it.
The value of the bitcoin that we are used to seeing, when we see the one that we observe in the Calculators of these prices of the Crypto News and the Coin-MarketCap, this would be the value with which the cryptocurrencies are fixed or traded in the markets spot (cash) as direct payment made.
This is the case of all those derivatives, which these products have their own financial markets, because although they emulate in the spot market, they can obtain slightly different values, that is where these variations come in.
So this is because the derivative is a financial product among themselves and all those traders make a series of offers and demands in the market for this product, affecting its price.
In this sense it is oriented, each derivative would have its own mechanisms in order to maintain a certain similarity with the underlying assets among themselves.
Among the best known derivatives in the cryptocurrency market we have the (leverage tokens), they are cryptocurrency contracts.
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This article was written by @oscardavid79 free of copyright
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