If retail investors gain bad experiences from derivatives trading, the image of derivatives might be smeared, shunning new investors from going into this new form of trading, argues tempofeng, co-founder of perpprotocol.
Derivatives in DeFi bring the rewards but leave behind the inefficiencies that traditional finance offers. However, the crypto market is a volatile one, to say nothing of the complexity of trading derivatives on DEXs, in which retail investors have to learn to make the trades by themselves. These investors require guidance and knowledge on both DeFi and platform navigation when they enter derivatives for the first time.
Most new investors are not experts in DeFi derivatives and, as such, protocols are actually putting in more effort to welcome these new investors in such a way that they are not too ill-equipped to handle the torque in derivatives. There is more educational content on derivatives trading nowadays, whether on Twitter, YouTube, Medium or Discord. So, it’s much easier to learn more about derivatives trading in DEXs now than in the summer of DeFi back in 2020.
more regulations on derivatives. Without a positive user experience for retail investors, this may end up creating a negative stigma for derivatives trading.Retail investors can expect derivatives trading to become commonplace in the future, allowing anyone with a decentralized wallet to easily partake in trading. The popularity of derivatives trading will continue to rise, and derivatives protocols must focus on the experiences that they give to users to keep up with the demand.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Hong Kong Regulators Impose Limitations on Investing in Spot Crypto ETFsLike the U.S., Hong Kong financial regulators are not too keen on letting retail investors trade spot crypto ETFs, new guidelines show. iamsandali reports
Leer más »
Crypto hodlers may not get richer from mainstream adoption — Goldman SachsWill mainstream adoption take crypto’s price to the moon? It’s not a guarantee according to GoldmanSachs. (Reporting via WilliamSuberg)
Leer más »
Robinhood Cryptocurrency Trading Profits Drop as Platform Avoids Memetoken ListingsICYMI: Robinhood's profits from cryptocurrency trading dropped in the fourth quarter of 2021 $SHIB $DOGE
Leer más »
Robinhood to Launch Crypto Trading Internationally — Sees 'Immense Potential' in Crypto Economy – Exchanges Bitcoin News“Robinhood has set aggressive goals to start opening its crypto platform up to customers internationally in 2022.” cryptocurrency bitcoin $BTC
Leer más »
CoinFLEX’s New AMM+ and the Rise of Crypto Yield 2.0 – Sponsored Bitcoin NewsCoinFLEX, a leading derivatives exchange and yield platform, has announced the second iteration of their innovative AMM+ (Automated Market Maker)
Leer más »
Bitcoin, Ethereum Technical Analysis: Bitcoin Moves Higher as Crypto Markets Rebound on Saturday – Market Updates Bitcoin NewsFollowing two consecutive days of losses, bitcoin and ethereum both rebounded strongly to start the weekend.
Leer más »