6 Best Platforms for Trading Crypto Futures in 2020
Crypto futures are derivative products in the form of a contract. Two parties commit to either sell or buy a cryptocurrency on a certain date in the future at a predetermined price. In essence, Crypto futures allow traders to speculate on the future magnitude and price of an Asset.
The trading volume of crypto futures has grown rapidly since launching the first Bitcoin futures contract in 2017 by the Chicago Board Options Exchange (Cboe). According to a recent Bloomberg Report, “Futures daily volume exceeds that of the Bitcoin spot market.” Below are some of the top exchanges facilitating this rapid adoption.
BitMex is the biggest and the most popular crypto futures trading platform in the market. It was launched in November 2014 by Seychelles-based HBR Global Trading limited. The exchange has offices worldwide except in several countries, including the USA, Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, Sudan.
BitMex uses a kdb+ database known for its effectiveness in high-frequency trading. Fees are 0.25% markers fee and 0.75 % takers fee for every trade. Customers can trade with up to x100 leverage. The platform has massive trading volumes (mostly over $2 Billion per 24 hour period). Other unique features of BitMex include a demo platform, liquidity, and excellent security.
OKEx is one of the largest crypto futures trading exchanges with over $1.5 Billion in daily trading volume. The Malta-based exchange operates in more than 100 countries serving over 20 million customers. OKEx offers Crypto-to-crypto, fiat-to-fiat, and crypto-to-fiat trading pairs. Also, a token’s future market is settled in that token rather than in bitcoin.
For investors looking to venture into non-bitcoin crypto futures, OKEx is the best deal. It’s also among the top for bitcoin futures. The platform charges a 0.02% maker fee and a 0.05% taker fee. The fee applies for futures and perpetual swaps in nine supported cryptocurrencies: BTC, ETH, TRX, and XPR.
“Deribit” comes from two words; Derivatives and Bitcoin. Deribit was founded in 2016 in Amsterdam. The platform is bitcoin’s first and largest options trading exchange, with an excellent bitcoin futures offering. As the name suggests, all transactions within Deribit are purely in bitcoin.
The platform offers perpetual futures, traditional futures, and options for both Bitcoin and Ethereum. The withdrawal fee range from 0.0002 to 0.0015. Futures attract a Maker Fee of -0.02% (Rebate) and Taker Fee of 0.05%. Deribit futures products are tradeable with 50-100x leverage. It has over $134 Million daily trading volume.
eToro is a Fintech company based in Israeli. It is an award-winning social trading platform established in 2007. eToro stands out as the oldest platform for investing in stocks and crypto-assets. The platform offers an easy to use interface and a demo account.
eToro charges a withdrawal fee of $5. Other eToro features include a mobile-enabled platform, a $25 minimum trade value, and a copy trading feature. The platform supports 15 coins with BTC, ETH, XRP, DASH, and LTC.
Binance is the most popular exchange in the industry. It stands out as the world’s biggest Bitcoin Exchange and the most liquid spot exchange. It was established in 2017 by crypto innovators Changpeng Zhao and Yi He.
Binance recently added futures products to its platform and is currently offering 11 perpetual futures. Despite being new, the BTC/USDT futures are topping with over $2.5 Billion 24 hour trading volume.
Besides futures, Binance offers other products and services, including staking, lending, and spot exchange. Binance perpetual Futures fees start at 0.02% (makers) to 0.04% (takers).
Launched in 2017, Kucoin is a Singapore-based global cryptocurrency trading platform. Kucoin, also known as “The People’s Exchange” for its user-centered features, offers one of the most competitive fees in the market (0.1% flat fee) and a 0.0005 withdrawal fee. The exchange is currently boasting over $48 million daily futures trading. Kucoin supports futures trading for Ethereum and Bitcoin.
Trading crypto futures comes with many benefits compared to regular trading. Futures not only attract a low fee but also allows leverage trading. Futures are also extremely liquid compared to digital assets, thus reducing the risks involved in trading volatile cryptocurrencies. A cryptocurrency exchange links the investor with these and other benefits.
Crypto futures trading has grown rapidly in a short period. There are currently dozens of crypto exchanges offering futures trading, with each having unique features. This article filters through the huge list to bring you 6 of the best platforms for trading crypto futures based on pricing, trading volume, and unique features.