3 ways traders use Bitcoin futures to generate profit

Cointelegraph

Published Aug 28, 2021 08:30PM ET

Updated Aug 28, 2021 10:00PM ET

Whenever there's data out on futures contracts liquidation, many novice investors and analysts instinctively conclude that it's degenerate gamblers using high leverage or other risky instruments. There's no doubt that some derivatives exchanges are known for incentivizing retail trading to use excessive leverage, but that does not account for the entire derivatives market.

Recently, concerned investors like Nithin Kamath, the founder and CEO at Zerodha, questioned how derivatives exchanges could handle extreme volatility while offering 100x leverage.

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