What are crypto futures?

Futures trading refers to a method of speculating on the price of assets, including cryptocurrencies, without actually owning them. Like commodity or stock futures, cryptocurrency futures enable traders to bet on a digital currency’s future price. Needless to say, Bitcoin futures are currently the most popular type of crypto futures contracts.

What is a crypto futures settlement?

Cash-settled: Meaning upon settlement, there’s a transfer of cash (usually U.S. dollars) between the buyer and seller. Although a crypto futures contract is supposed to closely track the price of the underlying asset, its value can sometimes vary throughout its maturation (as it edges toward its settlement date).

What happened to crypto in 2020?

People started pouring money into crypto in early 2020, and in the short term, their bets paid off more than tenfold; Bitcoin alone rose from $4,861 in March 2020 to an all-time high of $67,789.63 in November 2021. Ethereum performed even better, rising from just $110 a pop to an all-time high of $4,891.70

What is crypto and how does it work?

What is Crypto? Cryptocurrencies are digital tokens that use cryptography for their creation and security. Bitcoin was the first, but thousands more have come. In the past few years, thousands of new cryptocurrencies have appeared, all claiming to offer something a little different.