Crypto futures are contracts that allow traders to speculate on the price of crypto assets and settle their positions at a predetermined time in the future. These contracts enable investors to secure an asset’s price, protect their positions, and lower risk exposure. By buying futures contracts, traders can mitigate their risk from potential volatility, which is beneficial for those who are concerned about instability.

Crypto futures work by allowing traders to agree to buy or sell an asset at an established price and time in the future. When the future contract expires, the trader either buys or sells the asset at the predetermined price, thereby securing its value. This means that traders can take advantage of market movements without necessarily owning the underlying asset.

Overall, crypto futures are an excellent way for traders to speculate on crypto assets without buying or selling them. They are becoming increasingly popular in the crypto market, providing traders with an efficient way to manage their risk and protect their positions.