It’s impossible to view the stock, foreign exchange, or cryptocurrency markets functioning without derivatives. Hence, using some of the best crypto derivative exchanges in 2023 is crucial. There is a wide variety of strategies traders can use, depending on whether they want to trade futures or perpetual contracts.
Suppose you’re interested in crypto derivatives but don’t know where to start. In that case, an exchange that facilitates such trades is a must.
Many cryptocurrency exchanges are still in their infancy regarding offering derivatives trading. So, we looked into the most popular and reliable ones and compiled a list of the best crypto derivative exchanges for your convenience.
Top 10 Best Crypto Derivative Exchanges
This exchange always ranks high in the best crypto derivative exchanges list. And as far as Bitcoin derivatives trading goes, this exchange is unrivaled. It is widely known for its trustworthiness and the 60+ cryptocurrencies it supports. Notable cryptocurrencies that you can use on this decentralized network are:
The exchange is very safe because it uses two-factor authentication. It charges an extra 0.5% to process a transaction instantly because P2P trades can be exceedingly slow. The platform’s regular fees are 0.35% for makers and 0% for takers.
Ownership of the exchange’s native coin, BNB, allows users to minimize this charge significantly. The exchange also offers various derivatives for trading Bitcoin, making it a very flexible platform.
The exchange’s derivatives trading fee is among the lowest in the industry. It does not charge any deposit fee. The trading fee is a percentage of the total amount of the trade and can range from 0.01% to 0.05%. Also, users who have BNB coins can take advantage of a lower cost.
The system is safe, and users can add an extra protection layer using two-factor authentication.
Derivative trading alternatives on the exchange include option contracts, futures contracts, and indefinite options. There are several order types to choose from limit, market, stop-limit, stop-market, trailing stop, post-only, and one-cancels-the-other.
Only one strike price is available for trading crypto options on the exchange. That’s the same as the Futures strike price for a perpetual contract in BTC USDT. Additionally, unlike European options, American options on the exchange allow you to put your money where your mouth is before the option’s expiration date. The cash settlement of these options eliminates the need for actual cryptocurrency delivery.
|No. of Futures Contracts||43|
|No. of Perpetual Contracts||137|
- It has over 1000+ cryptocurrencies
- Low commissions
- Supports fiat money deposits and withdrawals
- Not fully decentralized
Official Website: https://www.binance.com
A dedicated platform for BitCoin derivatives trading, ByBit ranks among the best crypto derivative exchanges. You can trade from multiple nations, expanding your potential profit margin. More than 2.5 million people worldwide use ByBit, which is only expected to rise.
Bybit boasts that its platform can process up to 100,000 transactions per second, making it the best option for buyers and sellers. It has a 0% fee structure, which is another reason why it’s among the most popular platforms.
It accepts deposits from more than 80 services, catering to its diverse user base — from debit cards and credit cards to cash and wire transactions.
Bybit’s test net lets you see how the platform functions in action, guaranteeing complete openness in all areas of the user interface, which is spotless. The UI was made with both novice and seasoned traders in mind. The site provides a wealth of useful learning materials for those just starting in the world of trading.
|No. of Futures Contracts||4|
|No. of Perpetual Contracts||18|
- Easy-to-use interface
- Competitive trading fees
- Higher liquidity levels
- Brilliant customer support
Official Website: https://www.bybit.com
Huobi, launched in 2013 by the Singaporean entrepreneur Leon Li, claims to be the best cryptocurrency exchange in the world. Futures, Coin coin-margined swaps, USDT USDT-margined swaps, and Options are four derivatives provided by Huobi. Huobi is undoubtedly among the best crypto derivative exchanges in 2023.
The platform has risen to the top of the cryptocurrency exchange market due to its exceptional stability and liquidity. Not only does it have precise safety measures, but it also provides swift and easy operations.
More than 90 payment options, including Apple Pay, wire transfer, credit/debit cards, and bank transfer, are available on Huobi for cryptocurrency trading. Due to its user-friendliness and safety features, this platform is suitable for novices.
Traders can access a sizable security reserve of money, which can be used in a catastrophic security incident, allowing the company to keep its safety standards at an all-time high.
Sellers and buyers alike appreciate that Huobi Global does not charge commissions on trades. Huobi also supports a broad variety of cryptocurrencies, with more than 400 available on the platform.
|No. of Futures Contracts||56|
|No. of Perpetual Contracts||168|
- Excellent reputation
- Great customer support
- User-friendly interface
- Low fees
Official Website: https://www.huobi.com
OKX is a top derivatives trading venue that offers a variety of derivative products, such as Futures Contracts, Options, and Perpetual Contracts. The exchange is fantastic for novice traders and institutions, and experienced traders, thanks to its comprehensive starter knowledge quiz.
OKX is a feasible option for traders interested in Altcoin derivatives due to the extensive range of products available for trading on the platform.
OKX also has the unique ability to facilitate the pairing of derivatives trade with the trading of fiat currencies, which is a huge plus for customers. With this, you can conduct business in any currency you like. You can withdraw your money without incurring additional costs due to currency conversion.
OKX ranks as the 19th largest cryptocurrency exchange by volume, as per CoinMarketCap, with over 20 million users from over 100 different nations on the site. In general, OKX is a fantastic exchange for crypto assets.
|No. of Futures Contracts||136|
|No. of Perpetual Contracts||56|
- Easy to use
- Good customer support
- Low fees
- Various payment methods
Official Website: https://www.okx.com
KuCoin has earned a place in the hearts of many traders thanks to its consistently high performance over the past decade. Headquartered in the Republic of Seychelles, KuCoin now serves over 10 million customers and has a presence in more than 200 countries. Also, it is one of the best crypto derivative exchanges in 2023.
The website allows users to buy, sell, and trade roughly 700 different cryptocurrencies, including popular coins like as Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance Coin (BNB), ADA, Ripple (XRP), Dogecoin (DOGE), and Dotcoin (DOT).
Four distinct varieties of cryptocurrency contracts are supported by the KuCoin exchange. These include Linear contracts, Perpetual contracts, Inverse contracts, and Delivery contracts.
On KuCoin, you will find three different futures platforms: Futures Lite, Futures Brawl, and Futures Pro. Trading cryptocurrency futures on KuCoin Exchange comes with several benefits.
The most important are transparency with the volume of trades conducted, customer support, increased market depth, and liquidity, all of which work together to ensure that traders do not experience significant losses due to erratic market movements and instant withdrawals.
|No. of Futures Contracts||27|
|No. of Perpetual Contracts||60|
- Solid and stable trading platform
- Transparent and competitive trading fees
- Wide range of alt-coins
- Brilliant customer support
Official Website: https://www.kucoin.com
MEXC Global, established in 2018, is a cryptocurrency service company that facilitates numerous crypto services. These services range from spot trading to derivatives trading to staking to institutional support.
More than 6 million customers have been helped by the exchange, which has a presence in over 200 countries. MEXC Global is a derivatives market participant that exclusively offers perpetual contracts. A margin of up to 125x is made available to users on these contracts.
Margin trading in both USDT and Coin is possible on the exchange. On MEXC Global, makers pay a 0.02% trading fee, and takers pay a 0.06% trading fee for perpetual contracts.
Although MEXC’s maker and taker fees are low at 0.2%, they are much more than those of brokers like BingX and Binance. Furthermore, the credit and debit card processing fees are hefty. While they fluctuate widely, you can often count on 8-13%, which is significantly more than the average of 4%.
|No. of Futures Contracts||0|
|No. of Perpetual Contracts||119|
- A wide variety of cryptos are available
- Great for beginners
Official Website: https://www.mexc.com
You can’t overstate the significance of finding a reliable BitCoin exchange if you work in crypto. You can trade in many other markets on this exchange, including cryptocurrencies, foreign currency, indices, and commodities.
PrimeXBT has quickly become the premier venue for investors and traders interested in entering the emerging cryptocurrency derivatives market. It’s a BitCoin-based margin trading platform with instantaneous access to over 30 different assets, including crypto and other digital currencies.
They provide a secure and fluid trading environment by providing access to various trading tools and ensuring the highest levels of liquidity at all times. If you’re a newbie or a seasoned trader who needs access to accurate market data and seamless trading execution, PrimeXBT has you covered.
Trading in the five major cryptocurrencies, stock indices (S&P500, FTSE100), commodities, foreign exchange, and five advanced order types is possible. PrimeXBT also boasts of serving 152 countries with daily trading volumes of 170,000.
The distinctive feature of this trading platform is that it offers 100x leverage for crypto trading. Leverage can be a useful tool to increase trade earnings. However, it can increase losses significantly if you aren’t careful.
PrimeXBT also provides a service called the Turbo market, in which users can wager on the direction of market price movement (up or down) for a very brief period (1-15 minutes). Users stand to gain as much as 70% in the long run by using this, albeit experts can argue that this “trading” is more dangerous.
|No. of Futures Contracts||43|
|No. of Perpetual Contracts||137|
- Comprehensive charting features
- A Turbo Trade feature for extremely quick trades
- Great reward system
- Various cryptocurrencies and commodities present
Official Website: https://primexbt.com
Gate.io is a remarkable cryptocurrency exchange that has attained high success thanks to its distinctive product offers. It is a global digital asset platform founded years ago and supports more than 1400 cryptocurrencies and 2500 trade pairs.
This exchange platform gives you access to a wide variety of trading, lending, and staking tools, including spot, Non-Fungible Tokens (NFTs), margin, copy trading, leveraging, futures, API trading, and more.
In addition, Gate.io offers trading bonuses and discounts through its native exchange token, GateToken. The cryptocurrency exchange implements a multi-layered security strategy, which includes monitoring for unusual behavior, multi-factor identification, withdrawal blocklists, and security logs to prevent unauthorized user account access.
Similarly, the platform is protected against theft by institutional-level security procedures that you may implement online and offline, removing any potential for a single point of failure.
Perpetual Contracts, Futures Contracts, and Warrants are some of the different derivatives that Gate.io makes available to its customers. Furthermore, Futures contracts are subject to a settlement commission of 0.015% from Gate.io. 149 perpetual contracts and various contracts are available on the platform.
|No. of Futures Contracts||Not specified|
|No. of Perpetual Contracts||149|
- No withdrawal fees
- Very low trading fees
- Secure exchange
- Excellent customer support
Official Website: https://www.gate.io
Bitmex is a well-known cryptocurrency exchange that also allows for trading derivatives. Since its debut in 2014, it has steadily developed a reputation among traders as a reliable trading platform.
The following is a categorization of the derivative products available on Bitmex:
- Perpetual Contracts
- Futures Contracts
In addition, Bitmex permits a margin of up to 100x on any contracts made using their platform. It also provides derivative products on several tokens, including BTC, ADA, BNB, DOT, DOGE, EOS, ETH, and others.
All contracts are settled in BTC, including withdrawals, deposits, and fees. The trading platform provides 85 futures contracts and 17 perpetual options.
Market takers pay 0.075% for every trade, and makers earn a 0.025% rebate. A reimbursement like this is provided to makers as a thank-you for contributing to the platform’s liquidity.
The following is a list of some other features offered by Bitmex:
- Customer service is available around the clock.
- Bitmex places a portion of your cryptocurrency holdings in a cold storage facility for your protection.
- Two-factor authentication is available to prevent unauthorized users from accessing your account.
- Bitmex supports English, Russian, Japanese, Chinese, and Korean languages.
|No. of Futures Contracts||85|
|No. of Perpetual Contracts||17|
- Staking opportunities
- 24×7 support
- Wide range of fiat currencies
- Advanced order types
- Fewer assets than some competitors
Official Website: https://www.bitmex.com
Deribit is another specialized exchange developed specifically for trading cryptocurrency futures and options. It began operations in 2016 and has since developed an easy platform for derivative traders.
Over 100 different nations can participate in trading on Deribit. You can deposit no fee and withdraw money without incurring any fees up to a specific amount. The platform only allows derivatives of Bitcoin and Ethereum.
Deribit’s UI is designed to make it appealing to newcomers while also serving as a powerful tool for seasoned users. You can trade using its web portal or download its mobile application, which is available for Android and iOS.
The following is a list of some extra features offered by Deribit:
- Deribit provides support for many trading bots and uses cold storage to ensure the safety of its users’ assets.
- The trading fee that Deribit assesses is very low and ideal for beginners.
- Support for customers is offered around the clock.
- Deribit supports the following languages: English, Korean, Spanish, Japanese, Russian, Chinese, and Turkish.
- It provides dashboards for viewing order books, current trades, and trading history. In addition, it provides statistics about futures, indices, volatility, and technical indicators.
To trade, you will first need to open an account, make a deposit, and decide whether you want to engage in futures trading or options trading. If you get stuck, you can find helpful articles on their blog.
|No. of Futures Contracts||59|
|No. of Perpetual Contracts||2|
- Low fees
- Fast withdrawals
- Various payment methods
- Ideal for both beginners and pros
Official Website: https://www.deribit.com
Crypto Derivative Exchanges Comparison
What is Crypto Derivatives Trading?
A crypto derivative is a secondary contract whose value is derived from cryptocurrency or another digital asset. Futures and perpetual contracts are a few of the most well-known cryptocurrency derivatives.
Trading in crypto is similar to traditional derivatives in that both parties enter a contract to acquire or sell an underlying asset. You can sell these assets at a fixed price and set time.
Put differently; a derivative is worthless apart from the underlying asset. For example, the value of cryptocurrencies like Ethereum is used to calculate the prices of Ethereum derivatives.
What is Crypto Futures?
The term “crypto futures” describes agreements between parties to exchange cryptocurrency at a future date and price. The contracts are very standard, although minor variations in implementation are possible. The trader stands to win or lose depending on the direction of prices in the future.
What are Perpetual Contracts?
A Perpetual contract is a special Futures contract in which the contract does not have an end date, which enables investors to maintain a holding for as long as they see fit.
Trading in perpetual contracts or perpetual swaps is based on the underlying Index Price. The Index Price represents the weighted average of the prices at which the coins are trading on the world’s largest cryptocurrency exchanges.
For this reason, the price of most cryptocurrencies included in Perpetual Swaps is equivalent to or near the price on spot markets. It’s important to remember that the marked price and the spot market price don’t always coincide, especially under unusual market conditions.
How to Trade Crypto Derivatives?
Time needed: 1 minute
How to Trade Crypto Derivatives?
The first step is to open a trading account with a cryptocurrency derivatives exchange that allows for derivatives trading. Some excellent choices include Binance, Huobi Global, and Bybit. Then, follow the steps below:
- Open an account
To open an account with the cryptocurrency exchange, select “Open Now.“
- Choose the derivative
Select either “Options Trading” or “Futures Trading” based on your preference.
- Choose the contract
Choose the contract you wish to trade by the price and date.
- Adjust positions and enable “Hedge Mode”
After that, make any necessary adjustments to the position mode. Then, click the “Hedge Mode” option. Remember to adjust your Leverage Multiplier.
- Deposit funds into your account
After that, deposit money into your Futures account.
- Monitor your portfolio
Regularly monitor your portfolio or position. You can view your positions from the screen’s bottom.
- Exit your position
Lastly, you can exit your position by selecting either the “Limit Close” or “Market Close” buttons.
- Close the Hedge Mode
Close the Hedge Mode option. You can start trading Options or Futures with confidence now.
Trading derivatives is a specialized subset of crypto trading that you can carry out in three ways: options, futures, or perpetual swaps. The outcome of the different types of contracts is the same since they both involve the purchase of cryptocurrency at a future date and price.
Futures offer a risk-free investment opportunity, but options carry a greater potential reward with less commitment. On the other hand, a perpetual contract has no end date and lasts indefinitely.
Exchanges like Binance, Bybit, and Huobi Global are highly recommended for doing derivatives transactions securely and swiftly. They have a great selection of coins and order options, competitive fees, and a smooth trading environment.
Derivatives trading carries the same high levels of volatility and risk as any other crypto trade. Carefully considering your situation and the impact on your financial independence is essential before putting your money into cryptocurrency.
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