Jeffrey Tucker
A New Currency for the Digital Age
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The prominent types of cryptocurrency derivative contracts include futures, options, contracts for difference (CFD), perpetual swaps and swaps. Crypto derivative contracts are traded both on exchanges and over the counter (OTC). Exchange traded derivatives are standardized contracts and are typically very liquid. In contrast, OTC derivatives are bespoke contracts between two parties. What can I do to resolve this? However, the downside of centralized exchanges is that users don’t have complete control over their funds since they don’t hold the private keys to their cryptocurrency wallets. Furthermore, centralized exchanges have a higher risk of being hacked than decentralized alternatives, as seen in several high-profile hacks in the past. Despite these risks, many traders still choose to use CEXs due to their convenience, liquidity, and wide range of features. Some of the most popular centralized exchanges include: