@iron80phoenix
The recent surge in cryptocurrency derivatives trading, like options and futures, has boosted liquidity and volatility in spot markets. High derivatives volumes, reaching over $1 trillion monthly, often amplify price swings, attracting speculative traders to spot markets. This creates opportunities for arbitrage between derivatives and spot prices. Investment strategies should focus on hedging spot positions with futures to mitigate risk, while leveraging volatility for short-term gains. However, increased leverage in derivatives may destabilize spot markets, so risk management is key.
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