Derivatives are financial instruments whose value is based on the price of an underlying asset, such as stocks, commodities, currencies, or cryptocurrencies. They are commonly used for hedging risks or speculating on price movements. The concept of derivatives has been around for centuries, with origins in agricultural markets where producers and consumers entered into contracts to lock in prices before harvests. In the context of cryptocurrencies, derivatives have gained popularity as traders seek to leverage their positions and hedge against market volatility.