#EthereumFuture Understanding # Ethereum Futures: A Guide for Investors

Ethereum futures are financial derivatives that allow traders to speculate on the future price of Ethereum (ETH), the second-largest cryptocurrency by market capitalization. These contracts are agreements to buy or sell Ethereum at a predetermined price at a specified time in the future. Ethereum futures offer unique advantages and risks, attracting both institutional investors and retail traders.

What Are Ethereum Futures?

In essence, a futures contract is a standardized legal agreement to buy or sell an asset at a future date and price. In the case of Ethereum futures, the underlying asset is ETH. These contracts are typically traded on regulated exchanges like the Chicago Mercantile Exchange (CME), Binance, or Bybit.

Ethereum futures come in two primary types:

1. Cash-Settled Futures: These are settled in fiat currency (e.g., USD), not in actual ETH.

2. Physically-Settled Futures: These involve the delivery of actual ETH upon contract expiry (less common).