Bitfinex Derivatives offers a derivatives platform accessible through crypto exchange Bitfinex. Notably, Bitfinex Derivatives is the first derivatives platform to offer Bitcoin Dominance [BTCDOM]. Its a perpetual swap enabling investors to take a position on the market weighting of the world’s biggest cryptocurrency.
Referencing 7 leading cryptocurrencies in the Bitcoin Dominance Index, a metric that traders can use to gauge bitcoin’s value relative to that of the broader digital currency market, BTCDOM enables traders to speculate on bitcoin’s performance against other digital assets.
The availability of the BTCDOM perpetual swap on Bitfinex Derivative’s platform provides traders with the capacity to obtain exposure to bitcoin without it being fully directional, as is the case when taking a long or short futures position on the world’s biggest cryptocurrency by market cap. As a contract that enables holders to speculate on the relative dominance of bitcoin, BTCDOM is allegedly more capital efficient and cost effective than an outright long or short futures trade, while also being less volatile.
As per press statement shared by Bitfinex with KoinPost, Bitfinex Derivatives is the first derivatives platform to offer the Bitcoin Dominance perpetual swap. This product will allegedly provide Bitfinex Derivatives’ users with a further avenue to obtain exposure to the world’s biggest digital currency by market capitalization.
Interestingly, futures contracts enable traders to buy or sell assets at a specified price and date in the future, providing a means of hedging and offsetting risks, as well as an opportunity to multiply profits. Furthermore, Bitfinex Derivatives platform and products are only available in eligible jurisdictions, and are exclusive to verified users.
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