Derivatives
By CoinGecko | Updated on Mar 03, 2020
Derivatives are financial instruments whose value is derived from an underlying asset (e.g. Crude Oil, Gold, Bitcoin etc). Compared to spot markets where the underlying asset changes ownership, in derivatives markets, traders trade contracts rather than the actual assets.
Related Terms
Block
In the context of blockchain, block refers to the collection of transactional data or information that are bundled together in a predetermined size.
Collateralized Debt Obligation (CDO)
A collateralized debt obligation (CDO) is a form of derivative in which the value is generated from another underlying asset, and is sold to institutional investors.
Cold Storage
Offline storage of cryptocurrencies which is arguably safer as they also require physical access (eg. hardware wallet, paper wallets)
Token Generation Event (TGE)
An event in which new tokens (ussually on a smart contract platform) are created and distributed to the public.
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