Crypto derivatives are not just doing well, but absolutely upturning the status quo in the cryptoasset market, with large swathes of traders transitioning across to these new trading instruments.
We’re breaking down what crypto derivatives actually are, and the best places online to trading crypto derivatives in 2020.
Crypto Derivatives 101
Crypto derivatives are a new kind of way to trade cryptocurrencies, but because no crypto is actually held by investors it presents a wide range of benefits.
There are 3 types of cryptocurrency derivatives which are Crypto Futures, Crypto Options and Crypto Perpetual Swaps.
Crypto futures are agreements to trade cryptocurrency at a time, amount and price, and they are binding.
Crypto options are the same as futures, except that they are optionally executed.
Crypto perpetual swaps are the same as futures, except that they are settled in USD instead of BTC.
Crypto Derivatives Trading Platforms
PrimeXBT
PrimeXBT is the world’s #1 multi-asset margin trading platform listing a wide range of derivatives and traditional assets that include commodities, stock indices and forex pairs.
As well as this, PrimeXBT lists a large number of cryptoassets that include Bitcoin, Ethereum, Litecoin, Ripple and EOS.
Traders enjoy high leverages of up to 100x on all cryptoassets and up to 500x on all traditional assets.
PrimeXBT is known for having an intuitive and professionally-made trading suite, with excellent charting technologies and supporting functionality.
Traders at PrimeXBT pay a low 0.05% on each trade - one of the lowest fee schedules in the cryptocurrency industry.
Deribit
Deribit is a platform that focuses solely on derivatives and in the time that they have been operating have created a name for themselves as being one of the places to go for derivatives trading.
The platform itself a quite good, but could be improved with a better design of their user interface.
Another criticism of the platform is that their customer support is in desperate need of improvement, with widespread reports of sluggish or non-existent service.
All in all however Deribit is good platform for trading crypto futures and options, and is worth checking out.
In Summary: Crypto DerivativesCrypto derivatives are here to stay, and from the statistics surrounding the growth of this sector we will be likely to see more about these instruments as time goes on.
Finding the right place to trade crypto derivatives is important, and the two trading platforms we’ve listed provide the best services in the industry for derivatives that we’ve found.