Crypto Derivatives Exchanges: The 8 Best Options To Consider In 2022

CoinMarketCap, OKX is the 19th largest cryptocurrency exchange in the world by volume. In fact, the site has over 20 million users in more than 100 countries. Crypto derivatives are growing fast, and many hands want a piece of that pie.

• A futures exchange is a platform that allows investors to ‘long’ or ‘short’ a particular crypto asset with leverage.
• The top picks were selected based on factors like trading fees (weighted 20%), withdrawal fees (15%), and if an exchange offers cold storage of crypto assets (weighted 10%).
• In this guide, we outline the 5 Best Crypto Exchanges in Belgium to invest in digital assets.
• You can choose call and put options depending on your outlook on a particular crypto.
• For security, it has real-time auditing, liquidation, and risk management framework in place.
• It may also include taking a selfie with your mobile phone or computer.

The best exchanges were chosen based on factors like trading fees (weighted 14%), withdrawal fees (12%), and if an exchange offers cold storage of crypto assets (weighted 12%). OKEx is a cryptocurrency exchange that provides advanced financial services to traders globally by using blockchain technology. This crypto exchange offers hundreds of tokens to help traders to optimize their crypto derivative strategies. BaseFEX exchange makes use of the best security practices in the industry and stores user funds on multi-signature cold storage wallets. For making any transactions, 5 out of 7 partners need to sign the transaction, which helps to provide the utmost security for users’ digital assets.

Today’s leading crypto futures exchanges enable anyone with sufficient trading experience and capital to access the global crypto derivatives market in a secure and user-friendly manner. Additionally, Binance Futures offers traders a 10% discount on standard trading fees if they use BNB to pay for trading fees on the derivatives exchange. To enjoy this discount, you will have to transfer BNB from your spot wallet to your futures wallet.

How do you buy crypto?

Unlike its peers, such as Robinhood and Venmo, Cash App also lets users withdraw their Bitcoin to third-party wallets, which makes it stand out from its competition. That’s why it is only recommended to trade on a specialized exchange with dedicated infrastructure for cryptocurrency trading. In this case, the trade goes short and buys BTC short contract of 3 months expiry date.

They offer you access to top-tier liquidity and a wide range of trading tools while maintaining security and liquidity, enabling a safe and efficient trading environment. PrimeXBT provides a robust trading system for both beginners and professional traders that demand highly reliable market data and performance. Crypto derivatives are essentially secondary contracts signed by two or more parties to acquire or sell a specific cryptocurrency asset at a specified price in the future. Any changes to the asset’s cost will directly impact the contract’s value. When two parties enter into a futures contract, they agree to buy/ sell an asset or security at a pre-fixed price on a selected date in the future. Crypto futures have Bitcoin or altcoins (e.g. BNB, LEO, Stellar Lumens) as the underlying.

Top Crypto Futures Trading Platform

Overall, Bisq offers a simple way for users to trade crypto, without the need for identity verification or lengthy sign-up processes. Bisq is a decentralized exchange that comes as a downloadable software, allowing users to trade crypto on a peer-to-peer network. Bisq does not require user registration, as users are trading coins directly with others on the platform, and there are no KYC identity verification requirements to use the platform.. Crypto trading bots are automated software that helps you to buy and sell cryptocurrencies at the correct time.

Investopedia collected key data points from 28 cryptocurrency exchanges across several key categories, including security, fees, features, and more. By now, I believe you have already sensed this, and the fact you are here tells me about your interest. It offers crypto-based perpetual swaps as well as futures contracts. In addition, individual users can see all devices that have logged in, and remove access to any they don’t recognize. Users can also set up “whitelisting,” which restricts any withdrawals of digital assets to known wallet addresses only. As an added layer of protection, Gemini offers hot wallet insurance.

Best Decentralized Derivatives Trading Protocols

BitMEX is built for professional traders and institutions and has a powerful trading platform, built using the same technology used by leading financial institutions. In our detailed Phemex review we found, it is integrated with 30+ liquidity providers, has an order response time of less than 1ms, and can execute over 300K transactions per second. The exchange gets an average daily trading volume of over $1.1 billion. StormGain charges zero commission for trading i.e. no maker or taker fees however a profit share of 10% is deducted from profitable trades, other than that the fee structure is quite affordable. The funding rate hovers around 0.01% and has a funding interval of 8 hours. When it comes to trading, you can either take the DIY approach, or you can utilize one of of eToro’s two hands-off options.

We try our best to keep things fair and balanced, in order to help you make informed decision. Before selecting a Bitcoin derivatives exchange, always check the liquidity on the platform, platform interface, and platform security. If available, trade on the demo version of the exchange to familiarize yourself with the platform. The trading fee on the platform is as per the industry standards and has a flat-rate structure.

This is because their platform ticks all of the boxes when it comes to having the best user experience, deepest liquidity, lowest fees and best overall security. They are also one of the few exchanges that does not require identity verification, meaning you can sign up with an email & password only. Bybit was launched in March 2018 and is one of the fastest-growing crypto derivatives exchanges in the market and is crypto derivatives exchange known for its customer-centric platform interface. It was the first platform to make crypto derivatives trading accessible to a retail class of traders. A cryptocurrency exchange is like an online brokerage for cryptocurrencies, tokens , and other digital assets. Many of these exchanges offer investment options for active traders looking to buy, sell, or hold digital assets like bitcoin, ethereum, and litecoin.

Best Crypto

The total value locked in the decentralized derivatives market is currently around $27 billion. Let’s take a look at the decentralized derivatives exchanges where most of this value is held and transferred. Decentralized derivatives are a new way for traders to trade crypto assets without directly holding them. FTX also allows its users to trade the prediction markets and help you earn interest on your dormant lying cryptos on its platform.

These exchanges allow traders to speculate on the future price of an asset, or effectively hedge their portfolio. Decentralized crypto exchanges distribute responsibility https://xcritical.com/ for facilitating and verifying crypto trades. Anyone willing to join a DEX network can certify transactions, much like the way cryptocurrency blockchains work.

Coinbase’s more than 200 tradable coins should satisfy most looking to break into the crypto space. Crypto.com provides a very good selection of tradable cryptocurrencies, with more than 250 available. The Crypto.com Visa Cardis available for users who want to optimize for coin-based rewards.

How to Sign Up for a Cryptocurrency Exchange Account

Huobi Global offers a simple way to buy crypto, as users can deposit fiat funds and make a purchase right away. Trading fees are also relatively low, ranging from just 0.015% to 0.2% per transaction. In addition, Huobi Global offers advanced trading, including limit, stop, and trigger orders, as well as margin and futures trading. Overall, Huobi Global offers a wide range of cryptocurrency altcoins to buy, sell, and trade, including assets that aren’t available on many centralized exchanges.

Kraken’s professional trading platform offers very low trading fees, with discounts given to high-volume traders. It uses a maker/taker fee model, with fees ranging from 0.00% to 0.26%. With day trading typically involving a large volume of transactions per month, Kraken helps keep costs low for active traders. Kraken is ideal for active traders, offering low trading fees, advanced charting and order types, and access to margin and futures trading. Gemini offers several security features for both retail and institutional investors alike. In addition to security features like two-factor authentication and cold storage of crypto assets, Gemini also employs individual-level controls to further secure user accounts.

Are Crypto Exchanges the Best Way to Buy and Sell Bitcoin?

Some platforms allow users to stake selected cryptos and earn interest payments. Types of storage options, security and insurance available, plus an assessment of any large-scale hacks of each exchange over its lifetime. We looked at the availability of complex trading features like advanced order types and volume discounts for frequent trading.

FTX is a crypto derivatives trading platform that is designed by a bunch of traders with Wall Street experience. A relatively new platform, it offers a range of innovative trading instruments like Perpetual Futures, crypto indices, volatility contracts and more. In addition, it also has special FTX leveraged tokens that are ERC-20 tokens for leveraged exposure to crypto markets without many specifics. Some crypto exchanges support advanced trading features like margin accounts and futures trading, although these are less commonly available to U.S.-based users.

Dynamic pricing on the platform is supported by decentralized oracles, along with TWAP pricing from leading decentralized exchanges. Taking the top spot on the list is Binance Futures, which leads the rest when it comes to 24-hour volumes. While it is popular for the spot trading feature, it also features margin and futures trading. Being one of the relatively older and a reputable crypto platform, trading on Binance is a straightforward process. It offers Perpetual Contracts with leverage of up to 125X and is found to be ideal for shorting Bitcoin and other cryptos without having to maintain a large BTC deposit in the user’s account.

How We Chose the Best Crypto Exchanges

The platform offers unique perks and crypto rewards for Crypto.com Visa Cardusers. If you’re interested in buying cryptocurrency, you need to open an account with a crypto exchange. There are around 500 examples to choose from, and Forbes Advisor combed through the leading players to determine the best crypto exchanges for both new and experienced investors. We also took into account platform availability, the number of cryptocurrencies available, and customer support options.