Is the rise of derivatives trading a risk to retail crypto investors? By Cointelegraph
[ad_1]
BTCWith an increase in the number of retail investors dabbling in derivatives trading and investors hopping into decentralized exchanges (DEXs) due to regulations in the United States and China, there has been a rise in users utilizing derivatives DEXs, with (BTC) whales moving into derivatives and an increase in buying interest in derivative contracts.
This has created a surge in the daily trading volume for derivatives protocols, allowing them to briefly take over centralized finance platforms such as Coinbase (NASDAQ:), which sparked interest in retail investors with regard to moving towards derivatives trading in decentralized finance (DeFi). However, without a proper introduction to derivatives in DeFi, new investors are likely to hop off derivatives trading as quickly as they hopped on.
Yenwen Feng is the co-founder of Perpetual Protocol, a decentralized perpetual contract protocol for every asset, made possible by a Virtual Automated Market Maker, with an aim to create an accessible and secure decentralized derivatives trading platform. Yenwen has over 17 years of various expertise and experience in the financial and tech industry, co-founding businesses like Cubie Inc. and Cinch Network. Yenwen also holds an MS degree in computer science from National Chiao Tung University.
Continue Reading on Coin Telegraph
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
[ad_2]
Source link
BTCWith an increase in the number of retail investors dabbling in derivatives trading and investors hopping into decentralized exchanges (DEXs) due to regulations in the United States and China, there has been a rise in users utilizing derivatives DEXs, with (BTC) whales moving into derivatives and an increase in buying interest in derivative contracts.
This has created a surge in the daily trading volume for derivatives protocols, allowing them to briefly take over centralized finance platforms such as Coinbase (NASDAQ:), which sparked interest in retail investors with regard to moving towards derivatives trading in decentralized finance (DeFi). However, without a proper introduction to derivatives in DeFi, new investors are likely to hop off derivatives trading as quickly as they hopped on.
Yenwen Feng is the co-founder of Perpetual Protocol, a decentralized perpetual contract protocol for every asset, made possible by a Virtual Automated Market Maker, with an aim to create an accessible and secure decentralized derivatives trading platform. Yenwen has over 17 years of various expertise and experience in the financial and tech industry, co-founding businesses like Cubie Inc. and Cinch Network. Yenwen also holds an MS degree in computer science from National Chiao Tung University.
Continue Reading on Coin Telegraph
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
About The Author
