Cryptoderivatives help traders manage risks and increase profits. Here are the best cryptoderivatives exchanges to do business with them.
Cryptoderivatives – it is an agreement to buy or sell a particular cryptocurrency at a fixed price and a specified time in the future. Here are the first four exchanges of crypto derivatives that we recommend.
BitMEX, the oldest derivatives market in the cryptoworld. It has been in operation since early 2014, when cryptoburses were still in their infancy.
It is a trading platform to maximize BTC because trading can only be done with a BTC deposit; no stablecoins. Larger merchants also prefer BitMEX as it offers the largest demand range in the crypt, resulting in less slippage in large orders.
However, BitMEX has only three trading pairs against the USD (BTC, ETH and XRP), while the rest are relatively illiquid contracts that are tied to BTC. The stock exchange is also prone to system overload during volatility peaks.
When the ruling spot market king decides to market derivative instruments, traders are likely to move. Seven months after the first trading in derivatives, this king consolidated his place by becoming the largest platform.
Binance has permanent futures contracts for a large number of altcoins against USDT, which is one of the biggest pluses. In addition, it is possible to trade futures with all pairs while holding collateral in USDT, offering protection of capital against volatility.
As the largest spot exchange for retailers, Binance offers a hassle-free experience when moving from spot to derivatives and vice versa. By integrating both of these markets into a single UX, Binance is a great platform for those looking to secure their direct futures positions.
This is one of the younger platforms that has quickly attracted the attention of retailers and institutional traders. FTX offers a wide range of spot pairs and derivatives as well as staking markets.
FTX has permanent contracts and futures on almost all major altcoins. What sets them apart from others is their innovative products.
The Exchange introduced “MOVE” contracts, which allow traders to stake on volatility. With several uncrypto products, such as the US presidential election betting, FTX sets the bar for crypto derivative platforms, high.
FTX is the only platform with futures, open-ended contracts and options for BTC and altcoins. No other bourse has other altcoin options other than ETH. FTX performed well in times of high volatility.
An option trader’s paradise, Deribit is the single most liquid Bitcoin options exchange, even when compared to CME and Bakkt.
Deribit enjoys over 85% of all Bitcoin option liquidity. The exchange offers perpetual swaps and futures too, but it has made its claim to fame with hallmark option volume. The exchange averages over 60,000 BTC of daily open interest.
Among other things, Deribit has a portfolio simulator that lets traders play around with different options spreads to calculate their profit or loss. For option traders and hedgers, Deribit is undoubtedly the best option.
From our experience, BitMEX, Binance, FTX, and Deribit are the best cryptoderivatives exchanges on the market. Between the four, traders can access a variety of instruments with ample liquidity.