Bitcoin futures are a financial instrument that allows traders to speculate on the future price of Bitcoin.
Futures are contracts between two parties to buy or sell an underlying asset, such as Bitcoin, at a specific price on a specific date in the future. Bitcoin futures were introduced in 2017 by two major exchanges, CME Group and Cboe Global Markets, and they have since become popular among traders and investors. One of the main benefits of trading Bitcoin futures is that they allow traders to take advantage of market volatility without actually owning the underlying asset. They also provide traders with the ability to hedge against price movements, which can be useful for those who own large amounts of Bitcoin and want to protect their investment. Bitcoin futures are traded on regulated exchanges and are subject to strict rules and regulations. However, there are also risks associated with trading Bitcoin futures. The cryptocurrency market is highly volatile, and the price of Bitcoin can fluctuate rapidly. This means that traders can incur significant losses if they do not manage their positions carefully.