Upbit: Crypto Derivative Instruments Play An Important Role In Market Diversification

Photo: Doc. Antara

JAKARTA - Upbit Indonesia views that crypto derivative instruments, such as forwards, futures, options, and swaps, play an important role in market diversification and risk management.

Upbit Indonesia Chief Operating Officer (COO) Resna Raniadi said crypto derivatives play an important role in market diversification because it allows investors to start entering and taking positions in various digital assets without having to have them directly.

"This helps in mitigating risks and creating wider investment opportunities," Resna said in a statement in Jakarta, quoted from Antara, Monday, July 29.

For information, crypto derivatives cover various types of instruments such as forwards, futures, options, and swaps. These instruments are considered not only to allow diversification but also provide better liquidity in the market.

According to Upbit, crypto derivatives also have a crucial role in modern financial markets. This allows investors to protect their asset value from extreme price fluctuations, manage risks, and gain exposure to crypto assets without having to own them.

With crypto derivatives, Resna said that the market is becoming more efficient and integrated, and attracts more participation from institutional and individual investors, which in turn can encourage wider economic growth.

Resna also emphasized the need for development and support for crypto derivatives in Indonesia. With the right support from the government and regulators, he views that Indonesia has the potential to become a leader in the global crypto industry.

"The development of crypto derivatives is an important step in this journey," said Resna.

Upbit said that his party is committed to continuing to support the development of the crypto industry in Indonesia. In addition, Upbit is also committed to collaborating with various parties to create a safe and innovative ecosystem for all market participants.