@abdiniaco
To hedge cryptocurrency investment risks using derivatives, consider the following tools:
Futures Contracts: Lock in a future price for a cryptocurrency, protecting against price fluctuations.
Options: Use options contracts (calls or puts) to have the right to buy or sell at a predetermined price, limiting potential losses.
Perpetual Swaps: Trade cryptocurrencies with no expiration, allowing you to go long or short and manage risk exposure.
Leveraged Tokens: Amplify positions but also limit losses if the market moves against you.
Hedging Pools: Participate in decentralized hedging pools to mitigate volatility risks.