A crypto derivatives exchange allows traders to speculate on the future price of cryptocurrencies without owning the underlying assets. These platforms offer various financial instruments, such as futures, options, and contracts for difference (CFDs). By leveraging margin trading, users can amplify their potential returns but also face increased risk. Crypto derivatives exchanges play a crucial role in enhancing market liquidity and providing hedging opportunities. Popular examples include Binance Futures and BitMEX, catering to both retail and institutional traders.