Crypto derivatives are risky because:

They are never profitable

They only allow buying

Markets are volatile and leverage magnifies losses

You must own the underlying asset

When a leveraged position’s losses exceed your margin, what happens?

The trade continues normally

You earn interest

Liquidation occurs

You automatically short the asset

A funding rate is best described as:

A subscription fee

A gas fee on the blockchain

A fee exchanged between long and short traders to align prices

A staking reward rate

Which of the following is a smart risk management technique?

Going all-in with high leverage

Avoiding stop-losses to prevent early exits

Calculating risk-reward ratios before entering trades

Trading during peak volatility only

Which risk is specific cryptocurrencies and blockchain-based platforms?

Credit card fraud

Smart contract risk

Bank freezes

Margin Calls

What does "DYOR" mean in crypto trading?

Download Your Online Resources

Do Your Own Research

Derivatives Yield On Risk

Don’t Yield Other Returns

Paper trading allows you to ___.

practice trading without using real money

earn small real profits

avoid all taxes

guarantee profits

The future of crypto derivatives includes:

Less regulation and fewer tools

Full reliance on banks

Elimination of all centralized trading platforms

More decentralization, regulation, and institutional adoption

Drew is excited by 100x leverage and bets his entire savings on a single long trade. The market crashes and his position gets liquidated. What did Drew fail to do?

Use risk management strategies

Set a high funding rate

Join a DAO

Pay his exchange bill

Mia wants to learn how to use crypto derivatives safely before going live. What is not a good step for her to take?

Read about stop-loss and take-profit orders

Try paper trading with a demo account

Try paper trading with a demo account

Complying with local crypto regulations

Risk Management and the Future of Crypto Derivatives

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