How do non-deliverable forwards differ from traditional cryptocurrency trading?

1 answers

• Jan 13, 2022 · 3 years ago
  Non-deliverable forwards (NDFs) and traditional cryptocurrency trading have distinct differences. NDFs are financial contracts that allow investors to speculate on the future exchange rate of a currency, without actually owning the currency. On the other hand, traditional cryptocurrency trading involves buying and selling actual cryptocurrencies on a digital exchange. NDFs are settled in cash, while traditional cryptocurrency trading involves the transfer of cryptocurrencies between wallets. Additionally, NDFs are typically traded over-the-counter (OTC), while traditional cryptocurrency trading takes place on centralized exchanges. These differences in structure and execution make NDFs and traditional cryptocurrency trading unique in their own ways.
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