Why Are Crypto Derivative Markets Essential? | by LBank Exchange | Mar, 2023

From the LBank blog.

Why Are Crypto Derivative Markets Essential?

Cryptocurrency has been a roaring success in recent years, with more and more people investing in digital assets like Bitcoin and Ethereum.

Along with the rise of cryptocurrencies, we have also seen the emergence of crypto derivative markets, which are essential to the growth and sustainability of the crypto industry.

In this article, we will explore why crypto derivatives are crucial and how they contribute to the overall success of the crypto industry.

What is the significance of crypto derivative markets?

Why LBank Is the best crypto derivatives exchange

LBank is considered one of the best crypto derivative exchanges for various reasons. These factors make it an attractive option for traders looking for a reliable and trustworthy platform to trade crypto derivatives.

Here are some of the reasons why LBank is considered to be one of the foremost crypto derivative exchanges:

How do I open a LBank Futures account?

LBank is a cryptocurrency derivatives trading platform that offers a variety of futures products, including perpetual and futures contracts.

If you are new to LBank, here is a step-by-step guide on how to make your first crypto futures trade on LBank.

1. Create an account: If you are new to LBank, you can download the LBank app or open an account on the LBank website, then sign up by providing your email address and a strong password. After that, you must verify your email address and complete the KYC (Know Your Customer) process, which involves submitting personal identification documents such as a passport or driver’s licence.

2. Open a LBank Futures account: To open a futures account, go to LBank Futures and click the registration button. Tick the “I have read and agree to Risk and Disclaimer.” Follow this guide for more detailed information.

3. Fund your account: After the opening process, you can deposit funds into your LBank Futures account. LBank Futures accepts a range of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), among others.

To deposit funds, click on the “Deposit” button in the top right corner of the website and select the cryptocurrency you want to deposit. Copy the deposit address provided and send the desired amount of cryptocurrency from your wallet to the deposit address.

4. Navigate to the Futures trading page: After funding your account, you can navigate to the futures trading page by clicking “Futures” on the top Derivatives bar. On the futures trading page, you will see a list of futures products you can trade. Click on the futures product you want to trade to open the trading interface.

5. Make your first trade: Upon verifying and funding your LBank account and transferring funds to your LBank Futures wallet, you’re ready to make your first trade.

For your first trade, go to LBank Futures and select your preferred trading pair, such as BTC/USDT or ETH/USDT Futures Contracts.

6. Monitor your trade: After placing your order, you can monitor your trade on the trading interface. The trading interface displays real-time information about the futures contract, including the current price, order book, and trading history. You can also set up alerts to notify you when the price reaches a certain level.


Crypto-derivative markets are essential to the growth and sustainability of the crypto industry. These markets play a crucial role in developing the crypto industry by providing a platform for investors and traders to hedge against volatility, enhance liquidity, facilitate price discovery, diversify portfolios, and encourage innovation. As such, they are an essential component of the modern financial landscape and will continue to shape the future of finance for years to come.

Please note: Crypto futures offer great ways to diversify your portfolio. However, it’s important to note that futures trading carries a high level of risk, and you should clearly understand the risks and potential rewards before engaging in futures trading.

Disclaimer: The opinions expressed in this blog are solely those of the writer and not of this platform.

This article came directly from the LBank blog, found on https://lbank-exchange.medium.com/why-are-crypto-derivative-markets-essential-845be9b8ff42?source=rss-87c24ae35186——2

Latest News