Traders use options contracts to secure the right, but not the obligation, to buy or sell a cryptocurrency at a predetermined price before a specified date.

Businesses or investors can use derivatives to hedge their positions against sudden price changes in crypto markets, protecting their investments from significant losses.

Investors use futures contracts to lock in prices for cryptocurrency, allowing for speculation on future price movements with a fixed timeline.

Financial institutions use derivatives to manage exposure to price fluctuations of cryptocurrencies as part of their investment strategy.