Futures Contract
An agreement to buy or sell an asset at a set price on a future date — crypto's main leverage and hedging instrument.
A futures contract obligates the parties to trade an asset at a predetermined price on a set expiry date. Traders use them to speculate with leverage or to hedge existing holdings without selling. Unlike buying spot, you post margin rather than the full value — amplifying both gains and losses.
Crypto futures come in dated form (traditional expiry) and, far more popular, as perpetuals that never expire. Regulated CME Bitcoin futures also gave institutions early exposure before spot ETFs existed. The core caution is universal: leverage means a modest adverse move can wipe your margin via liquidation.