Market volatility makes it hard to manage risk using only spot trading. A crypto derivatives exchange enables traders to hedge positions, speculate on price movements, and manage exposure through futures, options, and perpetual contracts. These tools are commonly used by experienced traders to protect portfolios during market swings. Understanding margin requirements, funding rates, and liquidation risks is essential before using them. When chosen carefully, these platforms can add flexibility to a trading strategy without needing to hold the underlying asset. Reviewing fee structures and risk controls can be a useful first step.