How do credit default swaps work in the cryptocurrency industry?

3 answers

• Syed Abdul QadirOct 06, 2025 · 4 months ago
  Credit default swaps (CDS) are financial derivatives that allow investors to protect themselves against the risk of default on a particular cryptocurrency. They work by transferring the risk of default from the holder of the cryptocurrency to the seller of the CDS. If the cryptocurrency defaults, the seller of the CDS is obligated to compensate the holder for the loss. This provides a form of insurance against default risk in the cryptocurrency market.
  456

  228
• Rahul MagarAug 23, 2020 · 5 years ago
  In simple terms, credit default swaps in the cryptocurrency industry are like insurance policies. They allow investors to hedge their bets and protect themselves from potential losses if a cryptocurrency they hold defaults. It's a way to manage risk and ensure that investors are not left empty-handed in case of a default event.
  329

  110
• MAARUF SULEIMANJun 19, 2021 · 5 years ago
  BYDFi, a leading cryptocurrency exchange, offers credit default swaps (CDS) as part of its trading services. With BYDFi CDS, traders can protect their investments and mitigate the risk of default in the cryptocurrency market. BYDFi CDS provides an additional layer of security and peace of mind for traders, allowing them to trade with confidence and minimize potential losses.
  377

  95