One of the main advantages of crypto futures trading is the ability to hedge against potential losses in the market. Hedging involves taking a position in a future contract that serves as insurance against adverse price movements. This strategy allows traders to protect their existing investments from sudden and unexpected price swings, mitigating risk and minimising potential losses.<\/p>\n

There are several ways to hedge using crypto futures contracts. One method is to take a short position in the futures market, offsetting potential losses in the spot market if prices drop. Another approach is cross-exchange hedging, where traders hold long and short positions on different exchanges to hedge against volatility.<\/p>\n