@dersorcerer72
The surge in cryptocurrency derivatives trading volume over spot markets increases market volatility due to leveraged positions amplifying price swings. Derivatives like futures and options attract speculative trading, heightening short-term fluctuations. Investors can use derivatives for risk hedging by employing strategies like delta hedging or protective puts to offset potential losses. Monitoring open interest and funding rates on platforms like Binance helps gauge market sentiment. Retail investors should balance derivatives use with spot holdings, ensuring disciplined risk management to navigate volatility while capitalizing on hedging opportunities.
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