Bitcoin futures contracts are a derivative product similar to traditional futures contracts. Two parties agree to buy or sell fixed amounts of bitcoin for a specific price on a certain date. Traders use them speculatively, but you can also use them to hedge. Hedging is especially popular with miners who need to cover their operating costs.
Futures are a great way to diversify your portfolio, trade on leverage, and bring some stability to your future income. If you want to explore more advanced strategies with futures, take a look at arbitrage. Cash-and-carry arbitrage and inter-exchange arbitrage offer some lower-risk trading opportunities when executed correctly.