@crystal7defender
As of March 11, 2025, cryptocurrency derivatives trading volume has surpassed spot markets, reflecting heightened speculative activity. This shift amplifies market volatility, as leveraged positions in futures and options magnify price swings—large buy-ins inflate rallies, while liquidations deepen crashes. Data from exchanges like Binance shows derivatives driving over 70% of total volume, intensifying short-term fluctuations. Investors can hedge risks using derivatives: buying put options protects against downturns, while futures lock in prices for spot holdings. Strategies like straddles capitalize on volatility, balancing risk. Diversifying and monitoring on-chain metrics enhance resilience in this dynamic market.
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