What are the benefits of using CDS contracts in the cryptocurrency market?

3 answers

• Apr 30, 2022 · 3 years ago
  CDS contracts provide an additional layer of risk management for investors in the cryptocurrency market. By purchasing a CDS contract, investors can protect themselves against the default risk of a particular cryptocurrency or exchange. This can help mitigate potential losses and provide peace of mind to investors.
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• Apr 30, 2022 · 3 years ago
  Using CDS contracts in the cryptocurrency market allows investors to gain exposure to the price movements of cryptocurrencies without actually owning the underlying assets. This can be particularly beneficial for investors who want to speculate on the price of cryptocurrencies without the need for a digital wallet or the risk of hacking or theft.
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• Apr 30, 2022 · 3 years ago
  CDS contracts in the cryptocurrency market are a relatively new development, and their benefits are still being explored. However, one potential advantage is the ability to hedge against the volatility of cryptocurrencies. By entering into a CDS contract, investors can protect themselves against large price swings and potentially limit their losses in the event of a market downturn.
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