Top 5 Best Crypto Derivative Exchanges in 2020 Worth To Trade On
Cryptocurrency derivative exchange is an online exchange that allows you to buy and sell cryptocurrencies derivative contracts. A cryptocurrency derivative contract is a financial contract between two or more parties based on the future price of an underlying asset (cryptocurrency).
Existing commonly heard among traders terms ‘go long’ and ‘go short’ refers directly to derivative contracts. By going long, trader makes a profit if the price of cryptocurrency rises, buys crypto at a lower price and sells it higher. Going short, the trader makes a profit if the price of cryptocurrency drops sells crypto at a higher price and buys back lower. Important to mention, crypto derivative exchanges allow the trader to borrow from the platform and increase their position up to 100 times. Using leverage and going long with 1 BTC, a trader can open a position up to 100 BTC worth.
|10% discount on trading fees||+35% bonus to first deposit||Claim $90 welcome bonus||5% discount on trading fees|
|Visit Binance||Claim Bonus||Visit ByBit||Visit FTX|
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We recommend using only crypto derivative exchanges with high liquidity, time-tested and trustworthy ones. We gathered the best top-tier crypto derivative exchanges with the highest security standards in the cryptocurrency industry, so you could make a great profit from Bitcoin and altcoins price fluctuations.
Here is our top 5 rating of the best derivative exchanges:
|№||Cryptocurrency derivative exchange||Supported coins||Leverage||API keys (for internal trading; bots)||Daily volume||Opened since|
[Check full review]
|BTC, ETH, LTC, ADA, LINK, EOS, over 30 cryptocurrencies||up to x125 (BTC);up to x75 on altcoins;||Enabled;Trading robots friendly||over $2 billion||2017|
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|BTC, ETH, EOS, ADA, LTC, BNB, over 30 cryptos, indexes.||up to x101 (BTC); up to x50, x100 on altcoins||Enabled;Trading robots friendly||over $300 million||2017|
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|BTC, ETH, XRP, EOS||up to x100 (BTC); up to x50 (ETH,XRP,EOS);||Enabled;Trading robots friendly||over $300 million||2018|
[Check full review]
|BTC, ETH, XRP, EOS, LTC + forex pairs, indices and commodities||up to x100 (crypto);up to x500 forex, indices, commodities||No internal desk trading yet||over $1 billion||2018|
[Check full review]
|BTC, ADA, BCH, ETH, EOS, LTC, TRX, XRP||up to x100 (BTC); up to x50 (ETH); the rest up to x33;||Enabled;Trading robots friendly||over $1 billion||2014|
Binance is the number one spot trading exchange and has launched margin and futures trading. The amount of cryptocurrencies available for margin trading by Binance is the best bitcoin exchange launched in 2017. They holding first place by trading volume among all exchanges.
Wondering where to buy alt coins? Binance is the best cryptocurrency exchange for altcoins. The platform supports wall of coins, such as BTC, ETH, LTC, XRP, LINK and over 30 altcoins.
The fee structure on Binance is higher than competitors and equal 0.1% for both maker and taker orders. For the amount of the assets and leverage platform provides on altcoins, this fee is reasonable.
Exchange to one of the best-established fiat gateways supporting wire transfer, credit card and debit card deposits and withdrawals. In order to use the service, you need to complete the identity verification process. Depositing cryptocurrency requires minimal KYC. Possible to trade without KYC, but daily deposits and withdrawals are limited.
The Binance security features are one of the best in the crypto sphere, two-factor, email, and mobile authentication enabled. Customer support is very good there. Even the bitcoin reddit trading community pick Binance. The only downside of the platform is that US traders can’t trade there with US IP. However, that doesn’t stop millions of traders from the US to enjoy trading on the platform using a VPN, as Binance is the best alternative to Coinbase.
The FTX cryptocurrency trading platform is designed for professional trading and is focused only on cryptocurrency derivatives. The platform interface is represented by good usability, despite the extensive functionality. In addition, there are official mobile applications on Android and IOS, which provide all available FTX functionality.
FTX crypto exchange is developed and used by Alameda Research company. The company was founded by professional trader Sam Bankman-Fried and programmer Gary Wang in October 2017. Alameda manages the digital assets of companies and investors. At the same time, the organization is a cryptocurrency market maker for BitMEX, OKEx and other trading platforms. The site manages a portfolio of digital assets equivalent to $100 million. Also, Alameda is engaged in professional trading of digital assets with daily turnover from 600 million to 1.5 billion dollars.
FTX has a multi-level commission structure for all futures and spot markets:
- First tier – Volume for 30 days up to $1 million – 0.07%;
- Second level – Volume in 30 days >1 million dollars – 0.06%;
- Third level – Volume in 30 days >5 million dollars – 0.055%;
FTX requires identity verification; without it, the deposit and withdrawals are only $1,000 per day. There three levels of KYC verification, here are they are:
- Level 1 – specify the name and country of residence. Withdrawal limit of up to $2,000;
- Level 2 – provide full name, residency, identity documents and a description of the source of income. Unlimited withdrawal in cryptocurrencies per day;
- Level 3 – the user provides a bank account. Unlimited withdrawal to crypt-currency per day and unlimited bank transfers from OTC account.
Exchange provides high-security standards for the users, they support Google 2FA and SMS verification.
The FTX Exchange was created by traders for traders, providing services for trading in cryptocurrency derivatives. It offers innovative products including derivatives, options, volatility products and leveraged tokens. Thus, the exchange is an excellent tool for professional trading firms. In spite of this, FTX has good usability, so it is available for beginners. Start day trading crypto with FTX.
Bybit is a cryptocurrency derivatives exchange, offering its services to individual and institutional traders and solving the problem of market manipulation existing on other exchanges, creating an honest and transparent environment. Bybit is one of the best cryptocurrency exchange launched in 2018.
100,000 transactions per second per contract – The order processing kernel runs at ten times the industry average speed, ensuring no overloads. Instantaneous response servers and the latest technologies prevent overloads so that traders’ positions are not liquidated, and traders do not miss the opportunity to place orders, as is often the case with server failures. Most often, BitMEX digital currency exchange users are dissatisfied with overloads. On BitMEX if such overload happens, the user can’t manage the position, and as a result gets liquidated. BitMEX doesn’t refund the losses to traders, so we don’t advice to trade on BitMEX without stop losses and big leverage.
The platform is based on the industry’s best system of hierarchically determined offline wallets, which stores all digital assets of users and platforms. Each deposit address assigned to a user is an offline wallet address. Digital assets are collected and withdrawn through offline signatures. To ensure the safety of users’ and platform’s assets, all block deposit records, transaction records, individual account balances and platform account balances are checked when withdrawing funds.
ByBit fee structure got a negative make fees equal -0.025%, the taker fees are 0.075%. Negative maker fees on limit orders help trader not to pay for opening the position; actually, he got paid for making his order. The taker fees are lower than Binance ones, the overall fee structure is very comfortable.
- Prime XBT
Prime XBT is an excellent cryptocurrency derivative trading platform for traders looking to increase their Bitcoin (BTC) holdings. Exchange daily trading volume exceeds $1 billion. Prime XBT is one of the best cryptocurrency exchange for day trading.
Prime XBT is an ambitious emerging player in the field of crypto derivative exchanges. Considering user-centric focus, convenience, and growing features, Prime XBT is likely to continue to expand its loyal user base and become the preferred destination for new and experienced margin traders. Here are the key features of the platform:
- Deposits only in Bitcoin – You will not be able to deposit any other types of cryptocurrency into Prime XBT;
- Margin trading on traditional assets and top cryptocurrencies – Trading Bitcoin, Ethereum, LTC, EOS and XRP, as well as S&P 500, FTSE100, Nasdaq, Japan, gold, natural gas, silver, crude oil, etc;
- Well-designed and powerful platform with customizable widgets – More than 12 integrated liquidity providers support the platform;
- Covesting feature – Covesting on Prime XBT which allows you to view and copy the operations of successful traders, reviewing their profit curve and strategy;
- One of the lowest fees – Prime XBT is very transparent in terms of fees and guarantees some of the lowest fees in the crypto sphere;
- Privacy – Prime XBT doesn’t have KYC (Know Your Customer), as they are a pro-privacy company, there are no limits on deposits and withdrawal
As mentioned above the fee structure is the lowest in the cryptocurrency industry. The maker and taker fees are equal 0.05% each. Cryptocurrency exchange supports all kind of devices from PC, tablet to mobile phone. The interface is user friendly and comfortable to use.
Summing up, Prime XBT provides access to a real-time market with a wide range of tools for technical analysis while maintaining security, liquidity and providing a comfortable and efficient trading environment for traders of all levels.
BitMEX is one of the largest platforms for derivative cryptocurrency trading. The platform supports the trading of derivatives with the function of margin trading. For developers, there is a full API. Traders could build up their trading bot or trade from the internal desk through BitMEX API.
No official applications are provided. Despite this, the site has a good and intuitive interface. The site supports English, Russian, Chinese, Japanese and Korean languages.
BitMEX supports trading on BTC, ETH, EOS, LTC, BCH, XRP, TRX and ADA. By trading, we mean derivatives trading. No spot trading available on the exchange.
The main asset of the exchange is Bitcoin. Deposit and withdrawals, as the profits are made in Bitcoin. BitMEX provides leverage up to x100 on Bitcoin, x50 on Ethereum and x33 and lower on other contracts. The commission is divided into two types as on the most derivative exchanges, maker and taker. Maker fee is equal to -0.025%, and the taker fee is equal to 0.075%.
As mentioned above, a negative maker fee is a great advantage for traders building up their position through limit orders. They are saving up on fees and get paid for their orders.
The support team does a great job. After the announcement, the response time does not exceed one hour. As for security, the exchange operates on a decentralized network and uses PGP encryption. User funds are stored on dedicated servers using a cold storage method. The site supports a two-factor authentication service. There is no verification procedure (KYC) on BitMEX. For user authentication email and password are enough.
The only downside of BitMEX is that from time to time, overload happens. During the overload, it’s impossible to execute a trader or amend any order. The losses caused by such overload are not refunded by BitMEX. It’s recommended to protect trade with a stop loss and don’t overleverage.
Overall, Bitmex is a trusted cryptocurrency exchange, one of the oldest in the market. Day trading Bitcoin through API interface makes trade execution easy and widens the automation process, letting traders build their automated strategy.