472
views

Top 9 Cryptocurrency Exchanges to Trade Crypto Derivatives

A derivative is a financial contract between two or more parties based on an underlying asset’s future price. Crypto derivatives are, therefore, tradable contracts between parties regarding the future of an underlying asset, which in most cases, is Bitcoin (BTC) or other top cryptocurrencies. Trading crypto derivatives enables traders to mitigate volatility-associated risks and hedge against potential losses in trading.   

In recent years, crypto-derivatives have grown in popularity. The enormous growth in crypto derivatives is largely attributed to the launch of bitcoin futures trading by the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME) at the end of 2017. 

There are various derivatives products in the crypto space, including Swaps, Futures, Forwards, Options, and Perpetual Futures. With the numerous derivative exchanges available in the crypto space, it can be daunting to choose an ideal exchange. This piece will shed light on the nine best exchanges to trade crypto derivatives. 

9 Best Exchanges to Trade Crypto Derivatives

Binance

Binance is among the oldest and reputable crypto trading exchanges. In addition to spot trading, Binance features margin and futures trading. The exchange supports derivative trading in the form of Binance Futures. 

It provides Perpetual Contracts with leverage of up to 125X and margin trading for BTC and altcoins with up to 1:3 leverage. Binance is not available in certain countries, such as the U.S. The platform has a 24h volume of $15, 476, 568, 375 with a daily turnover of 4 billion and allows settlement in cash. 

OKEx Exchange

OKEx exchange is a user-friendly crypto futures trading platform that fits both professional and novice traders’ needs. The exchange offers both bitcoin & cryptocurrency futures trading with live charts for enhanced marked technical analysis.

The exchange was recently ranked the world’s largest crypto derivatives exchange according to CoinDesk Research. OKEx is among the leading crypto exchanges regarding BTC futures and providing crypto derivative products beyond the traditional future. Out of the ten major cryptocurrency derivatives exchanges, OKEx offers the second-lowest swaps funding rate at an average of 0.0052%. 

The platform offers contract expirations daily, weekly, bi-weekly, monthly, quarterly, and bi-quarterly. This enables traders to execute diverse derivatives trading strategies.

FTX

FTX is a relatively new crypto derivatives trading platform that offers a range of innovative trading instruments such as Perpetual Futures, crypto indices, and volatility contracts. The platform also features special FTX leveraged tokens, which are ERC-20 tokens for leveraged exposure to crypto markets. 

FTX offers leverage of up to 101x and charges the industry’s lowest trading fees at 0.07% with no deposit or withdrawal charges. Some of the standard security features implemented on the platform include encryption and 2FA. FTX is available in 14 different languages and supports over 30 cryptocurrencies.  

BitMEX

Bitcoin Mercantile Exchange (BitMEX) supports crypto derivatives trading and accepts deposits and withdrawals in Bitcoin only. The exchange offers the next generation of Bitcoin trading products with up to 100x leverage on Bitcoin and high leverage on Altcoin contracts. 

BitMEX features an advanced API with a feature-rich trading dashboard with all the tools and charts needed to make a trading decision. The exchange employs the latest in multi-factor security and risk management measures, including auto deleveraging capabilities and insurance funds to keep users safe from price manipulation. 

C-Trade

C-Trade has gained a great reputation among crypto derivatives traders attributed to its fast and secure trading infrastructure that provides cryptocurrency Perpetual and Futures contracts. The C-Trade platform can handle over 100 000 TPS and comes with updated Spot Price Index and Market Price index systems to ensure trades’ reliability.

It offers Bitcoin perpetual futures contracts with up to 150x leverage, low fees, and high market liquidity. Customer funds are stored in multi-signature wallets with the platform employing manual authorization for withdrawals. 

Bybit

Bybit is a user-friendly, intuitive, and smart platform for Perpetual Contract trading with up to 100x leverage. Users can choose from a wide range of deposit options, including BTC, ETH, EOS, XRP, and even fiat currencies. 

Furthermore, the platform offers real-time market data, a customizable trading dashboard, reliable customer support, insurance risk fund, and ADL for risk management. The Singapore-based exchange allows users to make deposits as low as $5 and start trading. 

Huobi Futures

Huobi Future is another excellent digital asset derivatives trading platform that also offers margin trading, spot markets, futures, etc. The platform offers a safe, professional, and efficient digital asset derivative trading service that meets professional crypto derivative investors’ needs. 

The exchange offers 5x leverage for spot trading and allows credit card payments. Users are offered secure storage with dedicated multi-signature cold wallets, 24/7 security monitoring, and a dedicated 20 000 BTC Security Reserve Fund. 

Kraken Exchange

Kraken Exchange supports crypto futures trading with 50x leverage. The exchange also includes spot and margin trading. Users can easily transfer between Kraken Spot and Kraken Future markets. It’s one of the most secure crypto exchanges and offers relatively low trading fees. 

While the trading interface is flexible and intuitive, it’s not the best for novice traders. Traders can deposit and withdraw using a wide range of options such as SEPA, SWIFT, money wire, and domestic payment methods. Kraken Exchange boasts of high liquidity, industry-leading security measures as well as 24/7 live customer support. 

Bitfinex

Founded in 2012, Bitfinex is the longest-running and most liquid major cryptocurrency exchange. The exchange supports the trading of derivatives contracts enabling traders to speculate on the price of an asset. 

The major supported perpetual contract on the platform is Bitcoin/Tether Perpetual Contract (BTCF: USTF). In addition to derivatives, Bitfinex allows margin trading of up to 5x leverage and offers traders access to a peer-to-peer lending market.

Conclusion

Crypto derivatives allow traders to predict the future prices of assets without purchasing the underlying asset itself today. This means that the trader does not have to spend as much to gain exposure to the market. 

The growing interest in crypto derivatives has seen the growth of crypto exchanges supporting derivative trading. The exchanges highlighted in this review are excellent if you’re looking for an ideal platform to trade crypto derivatives, including futures, swaps, forwards, options, and perpetual contracts.

Bitcoin live price
Btc
Bitcoin
$19.606,01
price
3.17318%
price change
BUY NOW

Furthermore, the platform charges low trading fees and is very secure. Trading crypto futures is very profitable, especially if you’ve got the right skills.  

Stay up to date with our latest articles

More posts

Here are the Benefits of Auditing Your Smart Contract with SolidProof

Auditing a smart contract is vital to ensure that the code functions as intended. SolidProof offers a wide range of services to help with this process. The company guarantees a sound audit process and an experienced team of auditors.  Here are the benefits of auditing a smart contract with a reputable company such as SolidProof: A wide range of services: SolidProof offers a wide range of services to help with the audit process, including code review, security analysis, and more.…

Smart Contracts Vulnerabilities Specific to The DeFi Space

As the financial world moves increasingly online, it's becoming more and more essential to ensure that all transactions run securely. One way this is possible is through the use of smart contracts.  Smart contracts are computer programs that automatically execute the terms of a contract. They provide a secure way to conduct transactions without relying on third-party intermediaries.  While the use of smart contracts offers many advantages, they are also vulnerable to attack. In this blog, we will explore how…

Malicious Attacks on Smart Contracts that Auditors Can Easily Identify

With many businesses adopting blockchain technology and Smart Contracts, offering reliable security audits in the industry has become increasingly important.  Businesses may protect their assets and contracts by recognizing and preventing harmful assaults. This blog post will explore the different attacks a group of criminals can carry on Smart Contracts. We'll also look at real-world instances of assaults to help you secure your contracts. What are Smart Contracts? Understanding the Benefits of This Technology What are smart contracts? They are…

How Smart Contract Audit Can Help Prevent Hacks

As companies move toward implementing smart contracts, the need for technical audits becomes increasingly essential. Having a third-party auditor check your contracts for vulnerabilities can prevent your company from suffering from a hacking attack.  What are Smart Contracts? A smart contract is a script that automatically carries out a contract's provisions. Smart contracts are self-executing, meaning that once the system verifies the meeting of pre-determined conditions, the contract will automatically execute. This eliminates the need for intermediaries such as lawyers…

Top 10 Ways to Earn Free Bitcoin in 2022

Here are the best ways to earn free Bitcoin when your purse is light. --- Are you interested in Bitcoin, but still hesitant to risk putting money towards it? Alternatively, are you looking to sat every sat possible, but lack the dry powder to buy more? Here’s a secret: you can put more bitcoin in your pocket without spending a dime – or even doing any real work.  That’s not to say you’ll earn much bitcoin without either of those…

Are Gold-Backed Tokens Worth Investing During Crypto Bear Market?

The crypto market is under the complete control of bears, investors taking short positions to profit from declining prices. In this unstable environment, new capitalists are fearful or skeptical when funding projects. Instead, they turn to more reliable assets that would not wipe out their portfolios when or if they flop. Gold-backed tokens represent a category of assets ready to provide portfolio stability and allow investors to overcome the bear market without too many losses. On the contrary, gold-pegged tokens…

What is Taro? Trading Assets and Currencies on Bitcoin

Taro leverages Bitcoin, lightning, and Taproot to enable the peer-to-peer transfer of currencies and assets beyond just BTC. —  Worried that Bitcoin is too boring to play within the growing digital asset economy? Fret no longer.  Using Taro, the original blockchain network can support the decentralized exchange of multiple assets – including fiat currencies. Moreover, the protocol works together with the lightning network, letting users transact – instantly and for free – with non-BTC-denominated balances.  Read below to learn about…

What is Fedimint? The Custody Solution to Bitcoin Privacy

Fedimint combines distributed custody with blind-signed ecash tokens to let Bitcoin users transact in private. --- Despite its growth, Bitcoin still faces some glaring limitations to reaching mass adoption as a fully censorship-proof payments network. One of them is privacy. Bitcoin’s ledger is fully open and public, meaning anyone can track another person’s transactions if they know his public address.  The other is a custody problem. While wallet software UX has improved considerably over time, many Bitcoin holders still store…

What Is a Crypto Bear Trap?

Cryptocurrencies are often incredibly volatile and can see massive price swings in a short time.  This makes them ripe for bear traps. A bear trap is a situation where traders wrongly think a coin is about to reverse a downtrend. These events often result in significant losses.  This guide will discuss crypto bear traps, how to identify them, and the risks involved in these situations. Introducing Crypto Bear Traps A bear trap happens when a trader buys assets, expecting the…

Understanding the GameFi Phenomenon

The GameFi industry is changing the way people think about gaming and finance. It provides a new way for gamers to interact with each other and earn money. It is also giving people a new way to invest their money.  The GameFi industry has the potential to change the way these industries operate. This guide will look more closely into this new business, covering several features. What Is the GameFi Sector? The GameFi sector is a crypto-based industry that uses…