10 Best Crypto Derivatives Exchanges In 2023
Introduction
As the crypto derivatives industry continues to grow, so does the number of exchanges and trading venues. With so many options available, it can be hard to know where to start when looking for a reliable crypto derivatives exchange. To help you make an informed decision, we’ve compiled a list of some of the best crypto derivatives exchanges in 2023.
1. Binance
Binance Futures is one of the largest and most popular cryptocurrency derivatives exchanges in the world. They offer a wide variety of futures products, including spot and margin trading on Bitcoin, Ethereum, Ripple, Litecoin, and EOS. The platform offers advanced trading features, such as auto-hedging, cross-margin trading, order book depth chart, and more.
- USD-Margined Futures Contracts – Binance offers USD-margined futures contracts that are settled in either USDT or BUSD. These contracts are perpetual, meaning there is no fixed expiry date, and users can hold their positions for as long as they wish. The exchange also allows traders to take delivery of their orders and settle them in either USDT or BUSD.
- Coin-Margined Futures Contracts – Traders can also trade coin-margined futures contracts on Binance, which are settled in cryptocurrencies such as BTC, ETH, and other cryptos. These contracts work in the same way as USD-margined futures contracts and are perpetual with no fixed expiry date.
- Binance Leveraged Tokens – Binance also offers leveraged tokens that allow traders to access increased exposure to particular crypto assets such as Bitcoin and Ethereum. The exchange calculates the daily gains/losses on these tokens based on the underlying asset’s performance and adjusts the leveraged position accordingly.
- Binance Options – Binance also offers options trading, allowing traders to speculate on the price of an asset over a predetermined period. Contracts are available for BTC and ETH at the moment, and more cryptos are expected to be added in the future.
By using Binance, you won’t just benefit from competitive fees and an easily navigable platform for both novice and experienced traders. With their broad selection of derivative products, users can diversify their portfolio by hedging with leverage tokens or leveraging up to maximize returns. Additionally, there’s the advantage of high liquidity and tight spreads on top of everything else.
In conclusion, Binance will remain one of the leading cryptocurrency derivatives exchanges in 2023 as it offers a wide selection of products and services that cater to both professional and retail traders. With its advanced trading features, competitive fees, and support for a variety of crypto assets, Binance is sure to remain one of the top choices for cryptocurrency derivatives traders in the years to come.
Pros
- Wide selection of derivatives products
- Competitive fees
- User-friendly interface
- Support for a variety of crypto assets
Cons
- Limited customer support options
- No margin lending or borrowing options are currently available.
2. Bybit
Bybit is a cryptocurrency derivatives exchange that allows traders to take advantage of leveraged trading. The platform mainly focuses on coin-margined and USDT-margined perpetual contracts, but it also provides options. Bybit has some of the best liquidity in the industry and low fees compared to competitors.
Bybit offers a variety of derivatives products, such as coin-margined futures contracts that are settled in Bitcoin and Ethereum. These contracts are great for traders looking to speculate on price movements or hedge against market volatility without owning the actual cryptocurrency.
The exchange also offers USDT-margined perpetual contracts, which allow traders to take advantage of leveraged trading without needing to own the underlying asset. There is also a wide variety of trading tools and order types available, including limit, market, iceberg, and stop orders. These are great for advanced traders who want precise control over their trades. Additionally, Bybit also has a great user interface that is easy to use and intuitive.
Bybit is a great choice for leveraged trading and has some of the best liquidity in the industry. With its advanced trading tools and low fees, Bybit is sure to remain one of the top choices for cryptocurrency derivatives traders in the years ahead.
Pros
- High liquidity and low fees.
- Variety of derivatives products, including coin-margined futures, USDT-margined perpetual contracts, and options.
- Advanced trading tools and order types.
- Easy to use user interface.
Cons
- Limited customer support options.
- No margin lending or borrowing options are currently available.
3. Deribit
Deribit is another popular cryptocurrency derivatives platform. Deribit offers a variety of futures and options contracts, including perpetual and term contracts. The platform also has a wide selection of order types, such as limit, market, iceberg, and stop orders.
Deribit also has great liquidity and low fees compared to competitors. Additionally, Deribit is open to traders in over 100 countries. There is no fee for a deposit, and withdrawal is also free up to a certain limit.
Deribit is one of the best cryptocurrency derivatives platforms on the market today and offers something for both beginner and experienced traders. Deribit also provides margin trading services for experienced traders who want to take advantage of leverage. The platform also has a great user interface that is easy to use and understand.
Overall, Deribit is an excellent choice for traders who want to trade cryptocurrency derivatives. With its wide selection of products, advanced tools, features, and excellent customer service, Deribit is sure to remain one of the top choices for cryptocurrency derivatives traders in the years ahead.
Pros
- High liquidity and low fees.
- Variety of derivatives products, including perpetual contracts, term contracts, and options.
- Advanced trading tools and order types.
- Open to traders in over 100 countries with no deposit or withdrawal fees up to a certain limit.
- Great user interface and customer service.
Cons
- Limited margin lending or borrowing options currently available.
4. Bitmex
Bitmex is one of the most popular cryptocurrency derivatives exchanges on the market today. The platform mainly focuses on futures and options contracts but also provides margin trading services. Bitmex has some of the best liquidity in the industry, as well as low fees compared to other platforms.
Bitmex offers a wide variety of derivatives products, such as perpetual and futures contracts that are settled in Bitcoin. These contracts are great for traders looking to speculate on price movements or hedge against market volatility without owning the actual cryptocurrency.
Further, Bitmex also allows users to take advantage of leveraged trading with up to 100x margin. The platform also offers a variety of order types, including limit, market, iceberg, and stop orders. These are great for advanced traders who want precise control over their trades.
Bitmex also provides a great user interface that is easy to use and understand. Additionally, the platform has excellent customer service and is open to traders in over 100 countries.
Pros:
- High liquidity and low spreads.
- Wide range of derivatives products.
- Highly secure platform with two-factor authentication.
- Open to traders in more than 100 countries.
Cons:
- Complex user interface, which may be intimidating for novice traders.
- Limited payment options: only Bitcoin and Ethereum as accepted currencies for deposits and withdrawals.
- High fees compared to other exchanges.
5. Gate.io
Gate.io is another great platform for traders who want to trade cryptocurrency derivatives. It offers a wide variety of futures, options, and perpetual contracts that are settled in either USDT or BTC. The platform also has low fees compared to competitors and a wide selection of order types, such as limit, market, iceberg, and stop orders.
Gate.io also provides margin trading services for experienced traders who want to take advantage of leverage. The platform also has great liquidity, which is especially beneficial to traders who trade large volumes.
Gate.io has a great user interface that is easy to use and understand. Additionally, the platform offers excellent customer service and is open to traders in over 100 countries.
The various derivatives products offered by Gate.io make it an excellent choice for traders who want to trade cryptocurrency derivatives. It has great liquidity, low fees, and a wide selection of order types. Whether you are a beginner or an experienced trader, Gate.io is sure to have something for you.
Overall, Gate.io is an excellent choice for traders who want to trade cryptocurrency derivatives. It has great liquidity, low fees, and a wide selection of order types. Additionally, the platform is open to traders in over 100 countries and doesn’t charge any fees for deposits or withdrawals up to a certain limit. Whether you are a beginner or an experienced trader, Gate.io is a great choice for trading cryptocurrency derivatives.
Pros:
- Easy-to-use and intuitive interface.
- Wide selection of crypto derivatives instruments, including futures, perpetual swaps, margin trading, options, and plenty more.
- High liquidity allows traders to execute trades easily without large spreads or slippage.
- Comprehensive security measures, including multi-signature wallet security and cold storage for their customers’ funds.
- Highly competitive fees are some of the lowest in the industry.
Cons:
- Limited customer support options can lead to delays in resolving issues and misunderstandings.
- Lack of leverage options beyond 100x for traders looking for more sophisticated trading options.
- A limited range of payment methods is available, with only cryptocurrency deposits and withdrawals being supported.
- Trading fees can be relatively complicated to understand and calculate in some cases.
6. Huobi Global
Huobi Global is a leading cryptocurrency derivatives trading platform. It offers a wide variety of futures, options, and perpetual contracts that are settled in either USDT or BTC. The platform also has low fees compared to competitors and a wide selection of order types, such as limit, market, iceberg, and stop orders.
Huobi Global also offers margin trading services for experienced traders who want to take advantage of leverage. The platform also has great liquidity, which is especially beneficial to traders who trade large volumes. In addition, Huobi Global has a great user interface that is easy to use and understand. The platform offers excellent customer service and is open to traders in over 100 countries.
The various derivatives products offered by Huobi Global make it an excellent choice for traders who want to trade cryptocurrency derivatives. It has great liquidity, low fees, and a wide selection of order types. Whether you are a beginner or an experienced trader, Huobi Global is sure to have something for you.
Pros:
- Access to hundreds of tokens and assets.
- Intuitive interface, easy for newbies to get started.
- Wide range of derivatives products with low fees and leverages up to 125x.
- Advanced security measures, such as cold storage wallets and two-factor authentication.
- Good reputation and is one of the most trusted crypto derivatives exchanges.
Cons:
- Slow customer service response times may occur.
- The high leverage offered is risky and not suitable for all traders.
- No educational resources for new traders available.
- Relatively high trading fees when compared to other platforms.
- No margin trading or options trading.
7. OKX
OKX is a leading cryptocurrency derivatives trading platform. It offers a wide variety of futures, options, and perpetual contracts that are settled in either USDT or BTC. The platform also has low fees compared to competitors and a wide selection of order types, such as limit, market, iceberg, and stop orders.
OKEx also offers margin trading services for experienced traders who want to take advantage of leverage. The platform also has great liquidity, which is especially beneficial to traders who trade large volumes. Also, OKEx has a great user interface that is easy to use and understand. Additionally, the platform offers excellent customer service and is open to traders in over 100 countries.
The various derivatives products offered by OKEx make it an excellent choice for traders who want to trade cryptocurrency derivatives. It has great liquidity, low fees, and a wide selection of order types. Whether you are a beginner or an experienced trader, OKEx is sure to have something for you.
Pros and Cons
Pros:
- Low fees.
- Excellent liquidity.
- Wide selection of order types.
- Great user interface and customer service.
Cons:
- • Not available to traders in some countries.
- • No leveraged margin trading.
Overall, OKEx is a great choice for experienced traders who are looking to take advantage of cryptocurrency derivatives trading. With great liquidity, low fees, and a wide selection of order types, OKEx provides an excellent option for those wanting to trade cryptocurrency derivatives.
8. MEXC Global
MEXC Global is an up-and-coming exchange that brings low-capr of lto cap gems at their incubation stage. The exchange was established in 2018 in Seychelles, East Africa. It has a presence in more than 200 countries and has served more than 6 million users.
The exchange supports 11 different languages and provides a margin on perpetual contracts of up to 125x. It has a great user interface that is easy to use and understand as well as excellent customer service. The platform is open to traders in over 100 countries.
MEXC Global is an excellent choice for those looking for low-cap tokens incubated on exchanges with great liquidity and low fees. The platform also offers great user support and is suitable for both novice and experienced traders alike.
Pros:
- Variety of low-cap tokens incubated on the exchange.
- Low fees compared to competitors.
- Great liquidity for large-volume traders.
- Great user interface and customer service.
Cons:
- Limited margin lending or borrowing options currently available.
- Leveraged trading can be risky and is not suitable for all investors.
- Platform not suitable for beginner traders due to its complexity.
- No insurance in case of platform hack or theft.
9. Coinbase
Coinbase is one of the largest and most popular cryptocurrency exchanges in the world. It allows users to buy, sell, store and trade a wide range of digital currencies, including Bitcoin, Ethereum, Litecoin, and more. Coinbase also offers margin trading services for experienced traders who want to take advantage of leverage. The platform also has great liquidity, which is especially beneficial to traders who trade large volumes.
Coinbase has a great user interface that is easy to use and understand. Additionally, the platform offers excellent customer service and is open to traders in over 100 countries.
Pros:
- Variety of cryptocurrencies available for trading.
- Low fees compared to competitors.
- Great liquidity for large-volume traders.
- Great user interface and customer service.
- Supports margin trading up to 3x leverage.
Cons:
- Limited margin lending or borrowing options available.
- Leveraged trading can be risky and is not suitable for all investors.
- Platform not suitable for beginner traders due to its complexity.
- No insurance in case of platform hack or theft.
Overall, Coinbase is a great choice for those looking to buy, sell, store and trade a wide range of digital currencies. With low fees, great liquidity, and support for margin trading, Coinbase provides an excellent option for those looking to get involved in the cryptocurrency trading market.
10. KuCoin
KuCoin is a popular cryptocurrency exchange based in Hong Kong. It offers easy trading of hundreds of cryptocurrencies and boasts low transaction fees, great customer service, and a simple user interface. The platform also supports margin trading up to 10x leverage as well as advanced order types, including limit orders, stop-limit orders, and more.
In addition, KuCoin offers a wide range of trading tools and features, including API access, 24/7 customer service, and advanced charting. The platform is available in over 90 countries and currently supports eight languages.
Pros:
- Variety of cryptocurrencies available for trading.
- Low fees compared to competitors.
- Great liquidity for large-volume traders.
- Great user interface and customer service.
- Supports margin trading up to 10x leverage.
Cons
- Limited margin lending or borrowing options currently available.
- Leveraged trading can be risky and is not suitable for all investors.
- Platform not suitable for beginner traders due to its complexity.
- No insurance in case of platform hack or theft.
Overall, KuCoin is a great choice for those looking to buy, sell, store and trade a wide range of digital currencies. With low fees, great liquidity, and support for margin trading up to 10x leverage, KuCoin provides an excellent option for experienced traders looking to get involved in the cryptocurrency trading market.
A crypto derivative is a financial instrument that derives its value from a cryptocurrency or underlying asset. Crypto derivatives are designed to enable traders to speculate on the price of a digital asset without having to take physical possession of it. Crypto derivatives usually involve two parties, a buyer and seller, who enter into an agreement to exchange the difference in prices between when the contract is executed and when it expires.
The best crypto derivative exchange is an opinion that can vary dramatically depending on the individual’s needs and preferences. Some popular crypto derivative exchanges include Binance, BitMEX, Deribit, Bybit, Huobi, and OKEx. Each platform offers unique features such as leverage levels, various order types, and fee structures. Therefore, the best crypto derivative exchange for one individual may not be the best for another.
Crypto derivatives trading offers traders several advantages over traditional spot markets. First, crypto derivatives allow traders to speculate on the price of digital assets without actually having to own them. This allows for greater leverage and exposure to the market than in spot markets. Secondly, crypto derivatives allow traders to access more sophisticated trading strategies such as hedging, arbitrage and spread trading. Finally, crypto derivatives are often more liquid than spot markets and offer greater price transparency.
Trading crypto derivatives is a relatively simple process. To get started, you’ll need to open an account with a broker or exchange that offers crypto derivative trading. Once your account has been set up, you’ll be able to deposit funds and begin trading.
Crypto derivatives trading carries several risks that must be carefully considered and managed. These include counterparty risk, liquidity risk, and price volatility. Counterparty risk is the possibility of a counterparty in a trading transaction not fulfilling its obligations according to the terms agreed upon. This can lead to losses if the other party defaults on their part of the deal.
Some of the best crypto derivative exchanges include Binance Futures, BitMEX, ByBit, Deribit, and OKEx. These platforms provide a wide range of cryptocurrency derivatives trading options, such as futures contracts, perpetual swaps, options contracts, and more. Each platform has its own distinct benefits in terms of liquidity and fees, so it is important to research each exchange carefully before choosing one.
Conclusion
In conclusion, there are a number of great crypto exchanges available that offer great features and benefits to both novice and experienced traders alike. Ultimately, it is important to do your own research before selecting an exchange so that you can make an informed decision and choose the right one for your needs.
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Disclaimer
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About The Author
Moses is an experienced freelance writer and analyst with a keen interest in how technology is disrupting the financial sector. He has written extensively on the subject of cryptocurrencies from an investment perspective, as well as from a technical standpoint. He has also been involved in trading cryptocurrencies for over two years.
More articles
Moses is an experienced freelance writer and analyst with a keen interest in how technology is disrupting the financial sector. He has written extensively on the subject of cryptocurrencies from an investment perspective, as well as from a technical standpoint. He has also been involved in trading cryptocurrencies for over two years.
