Thanks to the increased interest of the trading community, crypto derivatives are among the most common financial products on all cryptocurrency exchanges or trading platforms today. Trading crypto derivatives has its own advantages as users can mitigate volatility-related risks and hedge against potential losses.
There are various derivative products, including swaps, futures, forwards, options, and perpetual futures. With the right skills and on the right platform, traders can get the most out of these instruments and make a small fortune in the process. However, finding the right platform is key.
If one were to list five of the best crypto derivatives exchanges on the market, these would be:
First place on the list goes to Binance Futures, which leads the rest in terms of 24-hour volumes. While it’s popular for the spot trading feature, it also offers margin and futures trading. As one of the relatively older and reputable crypto platforms, trading Binance is a straightforward process. It offers perpetual contracts with up to 125X leverage and is ideal for short selling Bitcoin and other cryptos without the need for a large BTC deposit on the user account.
Traders can also benefit from the margin trading feature for BTC and Altcoins with leverage of up to 1: 3. Binance Futures generally has a low fee structure, supports more than 200 altcoins and also offers the option to trade limited volumes anonymously. However, the platform is not available in certain regions including the US and does not support fiat payments.
FTX is a crypto derivatives trading platform developed by a number of traders with Wall Street experience. As a relatively new platform, it offers a range of innovative trading instruments such as perpetual futures, crypto indices, volatility contracts and more. In addition, it has special FTX leveraged tokens, which are ERC-20 tokens for leveraged engagement in crypto markets without many special features.
The platform is available in 14 different languages and supports over 30 cryptocurrencies and some of the leading fiat currencies with no deposit or withdrawal fees. On the platform, traders can get up to 101x leverage while paying some of the lowest trading fees in the industry at 0.07%. FTX also implements some of the standard security features including the latest in encryption, 2FA, and more.
As a relatively new trading platform, FTX still has to make a name for itself in the market and expand to other regions.
C-Trade is a relatively new trading platform for next-generation crypto derivatives and has quickly established itself in the market. The aim is to become a marketplace for crypto derivatives. C-Trade is known for its lightning fast secure trading infrastructure that offers perpetual and futures contracts in cryptocurrency. The platform also has options, warrants, and other structured products in the pipeline tailored to meet the diverse needs of the trading community.
C-Trade is created by a team of technology entrepreneurs with expertise in traditional equity derivatives trading and crypto asset management. The team has a thorough understanding of the market and traders’ needs and preferences, which has enabled them to create a reliable, secure and easy to use crypto derivatives platform.
C-Trade uses a high-performance matching engine that can process over 100,000 TPS and, along with updated Spot Price Index and Mark Price Index systems, ensures the reliability of trades. In addition to maximum leverage of 150x, C-Trade has a low fee structure and approves withdrawals within minutes. It is also known for exceptional customer service that can be reached through multiple channels such as live chat, contact form, email or social media. The C-Trade support team is highly qualified and able to answer questions in the shortest possible time.
Although the trading volume is lower than that of its peers, which is quite common with young platforms, C-Trade finds a place of its own as one of the hottest emerging trading platforms for crypto derivatives. Currently, C-Trade is running a BTCUSD Perpetuals trading competition and has a rewards program that allows users to earn up to $ 200 in rewards.
BitMEX, short for Bitcoin Mercantile Exchange, is one of the largest Bitcoin trading platforms that has been in operation since 2014. It is a pure Bitcoin platform that only accepts deposits and withdrawals in the flagship crypto.
BitMEX has a comprehensive, feature-rich trading dashboard with all the tools and charts required to make trading decisions. The platform implements appropriate security and risk management measures, including an insurance fund, automatic debt relief functions and protection against price manipulation.
Currently, BitMEX users can take advantage of up to 100x leverage and trading fees are the same as their industry peers. While the platform is very reliable and has gained the trust of the crypto community, it is best suited for seasoned traders, which makes it an attractive platform for crypto whales and institutional investors.
However, the list of cryptocurrencies supported by BitMEX is limited compared to others. It is also known to occasionally experience system congestion issues that are inconvenient to the trading community. It is also a target of several lawsuits.
Bybit, headquartered in Singapore, is another fast-growing crypto derivatives platform with daily trading volume, making it one of the top 10 exchanges on the market. Bybit was launched in March 2018 and offers a user-friendly, intuitive and intelligent platform for trading perpetual contracts with up to 100x leverage. The platform offers flexible deposit options such as BTC, ETH, EOS, XRP and even fiat currencies that can be used to make deposits of less than $ 5 to start trading.
Other notable features of Bybit include real-time market data, a customizable trading dashboard, reliable customer support, insurance funds and ADL for risk management. However, the number of contracts offered on the platform is limited to 4 to 5 compared to C-Trade.
Each of these five platforms has its own strengths and weaknesses. For example, Binance is one of the leading crypto platforms with the highest volumes and the highest user base. On the flip side, FTX users can experience many new crypto trading products as they work on building their user base. In close cooperation with FTX is C-Trade, a relatively new platform that offers an attractive welcome bonus, a quick payout and the best leverage. In addition to round-the-clock security and the powerful matching engine, the platform also scores in the customer service department.
Meanwhile, BitMEX is the pioneer in the exchange of crypto derivatives and has been around for a long time. However, recent litigation and system congestion issues remain a concern. And finally, Bybit offers an easy-to-use crypto derivatives platform with limited trading products that is offset by its transaction processing capabilities.
These five crypto derivatives exchanges are just a tip of the iceberg as there are many platforms that offer a variety of trading products and features. Traders looking to choose the right platform for their needs can always try as many as they want before making a selection. Some of these platforms also offer an attractive new user welcome bonus that can come in handy during the decision-making process.
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