Crypto derivatives have attracted loads of traders into the market, which has helped the crypto market grow and flourish.
Compared to trading in the spot market, trading in the derivatives market is no easy task. It requires skill, temperament, and the right trading platform to succeed due to the higher risks involved.
The use of leverage to trade derivatives helps amplify your profits if your trade goes as expected. But, it can also result in greater losses and may wipe your capital in case the market moves opposite.
Therefore, using the right kind of exchange platform is also very important for having the right skill.
Following is the list of top crypto derivatives exchanges in the market.
Top Crypto Derivatives Exchanges In 2022
- ByBit: $2000 Deposit Bonus & 100X leverage. [Recommended]
- PrimeXBT – 35% Extra Bonus On Deposit, 100X leverage on all coins
- FTX: Many exotic cryptocoins & tokens here for 20x levergae
- Phemex: Up & coming crypto futures and derivatives platform at 20x leverage
- Binance Futures: World’s largest crypto exchange with 100x derivatives
- Deribit: Bitcoin & Ethereum Futures @ 100X leverage
Bybit was launched in March 2018 and is one of the fastest-growing crypto derivatives exchanges in the market and is known for its customer-centric platform interface. It was the first platform to make crypto derivatives trading accessible to a retail class of traders.
It currently offers to trade in inverse perpetual contracts, linear perpetual futures, and inverse futures contracts. The maximum leverage offered is up to 100X on the BTC futures contracts and 50X on remaining contracts.
Bybit is known for its clean platform interface and best-in-class market depth. The exchange ranks within the top 5 list of exchanges by trading volume and has more than 1.6 million registered users.
Trading fees on the platform are competitive. It offers a maker rebate of 0.025% and charges a taker fee of 0.075%. The funding rate hovers around 0.01% and has a funding interval of 8 hours.
If you’re looking for an exchange that offers high leverage, has a powerful and feature-rich trading platform, then you should select PrimeXBT.
Founded in 2018, PrimeXBT is registered in Seychelles and is a multi-asset exchange, offering to trade in cryptocurrencies, forex, commodities, and indices.
The cryptocurrency segment offers margin trading in BTC, LTC, ETH, XRP, and EOS with a maximum leverage of 100X on all crypto assets.
It has a professional, intuitive and straightforward trading platform interface. It includes advanced tools and indicators for technical analysis, customizable charting layout, multiple order types to manage trades, real-time market data, access to Covesting copy-trading platform, etc.
The exchange is integrated to 11+ liquidity providers and has an order response time of less than 7.12 ms, which helps it to fill orders instantly. It has a flat rate structure and charges a commission of 0.05% per trade regarding trading fees. (Don’t forget to check our in-depth Primexbt review)
FTX is a fairly young cryptocurrency exchange launched in February 2019 and has grown rapidly. The exchange is consistently ranked in the list of top 6 exchanges by trading volume.
It was launched by the founders of Alameda Research (a top global liquidity provider) and is backed by popular crypto firms like Binance, Bitfinex, Circle, FBG Capital, True USD, etc.
The FTX exchange offers to trade in both spot and crypto derivatives but is primarily known for its offering in the crypto derivatives segment.
The crypto derivatives segment offers to trade in over 150 perpetual and quarterly futures, leveraged tokens, BTC options, and MOVE contracts (lets you speculate on the price a particular coin will move).
The maximum leverage on the platform is 101X, and you can set your default leverage level as per your risk profile and trading requirements.
Regarding trading fees, it follows a tiered-rate structure based on 30-day trading volume. It charges a maker fee of 0.02% and a taker fee of 0.07% for the initial level. FTT token holders are offered a discount of up to 60% on the trading fees.
Launched in November 2019, Phemex has received an overwhelming amount of support and growth from the industry and is regarded as one of the best platforms in the bitcoin derivatives trading segment.
The exchange is led by eight former Morgan-Stanley Executives and is registered as a Money Service Business (MSB) with the Financial Crimes Enforcement Network Department of UAE.
It offers to trade in 15 leading cryptocurrencies and provides a maximum leverage of up to 100X on BTCUSD contracts and 20X on remaining contracts.
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.
For institutional traders, it offers FIX API and sub-account functionality for quantitative traders. The transaction fee on the platform is 0.075% for the market makers and -0.025% (rebate) for the market makers.
Binance Futures has surprised everyone in the market with its growth to the top within a year of its launch.
The platform was launched in early 2020 and has changed the dynamics of the industry by offering a wide selection of crypto derivatives products and higher leverage offerings.
Professional and institutional traders prefer the Binance Futures platform because of its superior market depth and ability to fill trades at requested quotes.
The exchange offers to trade in USDT-margined perpetual and quarterly futures, COIN-margined perpetual and traditional futures, leveraged tokens, and BTC options. On USDT-M futures and COIN-M futures, it offers a leverage of up to 125x and up to 3X leverage on leveraged tokens.
On using leverage, it charges a daily interest rate between 0.004% to 0.04%. The trading fee is based on the last 30-day trading volume and has a 10-tiered fee-rate structure. The maker fee is 0.02% for the initial level, and the taker fee is 0.07%. It offers a discount of 25% on the trading fee when paid with BNB tokens.
Into Futures Trading? Check out the Best Crypto Futures Exchanges of 2021
It is a first-generation crypto exchange that has evolved and updated itself according to the needs of the traders and investors.
Kraken was founded in 2011 but launched its services in 2013. It offers trading in both spot and crypto derivatives segments and is known for its unmatched safety record.
In the crypto derivatives segment, the exchange offers to trade in perpetual futures of five leading cryptocurrencies, including XBTUSD, ETHUSD, XRPUSD, LTCUSD, and BCHUSD. You can trade with a maximum leverage of up to 50X.
The exchange offers a clean and intuitive interface and is considered a pioneer in introducing a customizable workspace. It also includes added tooltips and simplified order forms.
Regarding trading fees, it is based on 30-day trading volume and has an 8-level rate structure. In the first level, the maker fee is 0.02%, and the taker fee is 0.05%.
Deribit was launched in 2016 and is designed for institutional and professional traders. The exchange shot to fame due to its low trading fees and professional platform interface.
The exchange offers to trade in Bitcoin and Ethereum perpetual, futures, and options. The maximum leverage offered is 100X on Bitcoin Futures and up to 10X leverage to trade options with various strategies.
Deribit has a powerful trade engine, an order response time of less than 1 ms, and allows trade via web, mobile, and API. It supports three advanced trading software, including HAASONLINE, FMZ Quant, and Actant. For security, it has real-time auditing, liquidation, and risk management framework in place.
The trading fees are different for each instrument. It offers a 0.01% maker rebate for BTC weekly futures and has a 0.05% taker fee. On BTC and ETH perpetual futures, the maker fee is NIL, and the taker fee is 0.05%. And, on the BTC and ETH option, both maker and taker fee is 0.03% of underlying, but not exceeding the 12.5% of the option price.
BitMEX is the pioneer of crypto derivatives trading. Starting in 2014 and based in Hong Kong, BitMEX is the first platform to offer margin trading in Bitcoin with leverage as high as up to 100X. And is the first exchange to cross the $1 billion average daily trading volume milestone in the derivatives segment.
The exchange offers to trade in perpetual futures, linear futures, and QUANTO futures and allows trading with a maximum leverage of up to 100X. Its XBTUSD market is considered the most liquid market in the cryptosphere.
BitMEX is built for professional traders and institutions and has a powerful trading platform, built using the same technology used by leading financial institutions.
The trading fee on the platform is as per the industry standards and has a flat-rate structure. It offers a maker rebate of 0.025% and charges a taker fee of 0.075%.
BTSE is a versatile crypto exchange launched in September 2018 and is a regulated broker. It is licensed by the Dubai government’s Department of Economic Development and regulates its central bank.
You can trade in BTC, ETH, LTC, and XMR futures on the platform with up to 100X leverage.
BTSE has an institutional-grade trade engine, which can process over a million trades per second. The exchange allows multi-asset margin and settlement, which allows you to seek a settlement in a different asset than a margin posting asset.
The trading fee on the platform is quite competitive. It offers a maker rebate of 0.01% and charges a taker fee of 0.04%. And, the exchange maintains a spread of about 0.01%.
Where can you trade crypto derivatives?
More and more cryptocurrency exchanges have been embracing crypto derivatives in recent years as they try to keep up with the competition and increase the product offering for their users.
The chances are that you can now trade crypto derivatives in most of your favorite crypto exchanges, given how common they are. Also, crypto derivatives are available in both centralized and decentralized crypto exchanges.
However, it is always better to trade in dedicated derivative exchanges as they will give you access to more markets. Exchanges that have derivatives as one of their many products might only allow you to trade derivatives like futures on a few assets only.
That said, the best crypto derivatives exchanges are those that support futures contract trading, options, perpetual contracts, swaps, and most other types of crypto derivatives. Additionally, they should also have high leverage to amplify your potential earnings.
A good crypto derivatives exchange should have low transaction fees to ensure the costs do not eat up your profits. Also, it should provide maximum security with features like two-factor authentication, IP whitelisting, advanced encryption, and cold wallets for storing most of the assets.
Some of the best places to trade crypto derivatives are Bybit, Binance, and FTX, as they also have a broad product offering, high leverage, and low trading fees.
Can you trade crypto derivatives in the US?
The US has some of the strictest crypto regulations, and very few companies can meet them to get licenses to operate in the market.
Although you can still trade crypto derivatives in the USA, you will have fewer exchanges to choose from and lower maximum leverage compared to traders from other countries.
Some of the best crypto exchanges for trading derivatives in the USA are Kraken and FTX.US. Kraken allows US traders to trade futures on most of the top cryptocurrencies and allows for seamless transfer from spot to futures trading and vice versa. FTX.US allows traders to trade crypto options, futures, and swaps.
A few other exchanges that operate in the US market can also offer derivatives trading, but it is a good idea to confirm before signing up.
How do you trade crypto derivatives?
Crypto derivatives trading does not involve the exchange of any asset. However, the price depends on an underlying asset. For example, if you are trading a BTC futures contract, the price will depend on the price of BTC.
Like with spot trading, there are two parties involved in these contracts: the buyer and seller. The two have directly opposed opinions for the future price of the underlying asset. Hence, they agree to buy/sell the asset at a predetermined price and quantity in the future.
If it is a quarterly futures contract, you wager on what you think the asset’s price will be at the date of settlement. If the price moves in your predicted direction, you will make a profit without holding the underlying asset.
Most exchanges allow you to trade crypto derivatives with leverage, which increases your potential gains and the likelihood of getting liquidated if the market moves in the wrong direction.
Is crypto derivatives trading riskier?
Crypto derivatives trading is as risky as any other form of crypto trading, given the highly volatile nature of cryptocurrencies. However, it can get riskier than regular crypto trading when you add leverage.
If you trade crypto assets with leverage, you increase your potential gains greatly. However, the risk is also high because the higher the leverage you use, the smaller the change in price in the wrong direction required to trigger liquidation.
Also, crypto derivatives get riskier if you hold the position for a long time, as these are not meant to be long-term investments. Holding a crypto derivatives piston long accrues higher management fees, and the effects of volatility decay are more severe for the position.
I hope you find the list of crypto derivatives exchanges helpful and lets you filter the exchange based on your needs and trading goals.
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.
- 1 Top Crypto Derivatives Exchanges In 2022
- 1.1 #1. Bybit
- 1.2 #2. PrimeXBT
- 1.3 #3. FTX
- 1.4 #4. Phemex
- 1.5 #5. Binance
- 1.6 #6. Kraken
- 1.7 #7. Deribit
- 1.8 #8. BitMEX
- 1.9 #9. BTSE
- 1.10 FAQs