Futures are contracts that allow buyers and sellers to agree on a price for an asset at a specific date in the future. In this case, the asset is a cryptocurrency. This means that traders can speculate on the future price movement of a cryptocurrency without needing to own it outright. For example, if a trader believes the price of Bitcoin will rise, they can buy a futures contract at the current price, hoping to sell it later for a profit. Conversely, if they think the price will drop, they can sell a futures contract to profit from the decline.These contracts can add complexity, as they often involve leverage, allowing traders to control more significant positions with less capital. However, this also increases risk, as losses can exceed the initial investment. Futures are used by various market participants, including speculators looking for profit opportunities and hedgers looking to mitigate risk related to price fluctuations.