Top Bitcoin Futures Exchanges CME Group. Beyond this, Bitcoin futures also have their fair share of risks which can make them unsuitable for some traders—two of the main ones are outlined below: Although trading Bitcoin futures on margin (with leverage) can multiply your exposure to beneficial price movements, it also works in the opposite direction and can multiply losses just as quickly. Beyond this, Bitcoin futures are an excellent tool for risk management, since they can be used by miners, cryptocurrency businesses and anybody else that might be holding Bitcoin as a way to reduce or eliminate price risk in the future. The platform was launched in 2016 and is managed by an experienced team consisting of John Jansen, Marius Jansen, and Sebastian Smyczýnski. The exchange first launched its bitcoin futures products back in December 2017, and since then the demand for crypto derivatives has skyrocketed. Beyond this, the platform places a strong emphasis on ease of use, with a simple user interface and fee schedule making the exchange attractive to beginner traders. Of the big American online brokerages offering bitcoin futures contracts, Tradestation is is best in show. On the flip side, OKEX no longer has superior liquidity to Bitmex, so there is little reason to suffer through the account verification process. These futures offer: (a) up to 100x leverage and (b) ability to go both long or short. This platform stands apart from the competition thanks to its extremely low trading fees and 125x leverage for its BTC/USD perpetual contract. e-Trade targets the mass market and has a huge volume of traders. The BitMEX user interface can seem daunting at first, particularly for newer traders, but this complexity does bring with it a wide variety of different order types and useful information needed to assess the market. When the contract expires, the seller will be obligated to sell an agreed quantity of Bitcoin to the buyer at an agreed price. Perhaps an upcoming fundamental event is spooking the market, or you recognize technical patterns that precede a downturn; shorting a futures contract will soften the impact to the fiat value of your holdings. The exchange only processes withdrawals once per day which allows the team to better monitor suspicious activity, while cold storage and a variety of customer-side security options like 2FA and IP whitelisting make it unlikely traders will lose money as a result of a breach. Although Bitcoin futures have a huge number of benefits, it is still quite possible to lose money while trading them, particularly if traders neglect to maintain adequate caution. Futures will ultimately expire and settle at a price determined by an index that is usually transparent and fairly sourced; prices are not set by the brokerage, which removes any potential for price manipulation. Bitmex is targeted towards non-US customers, and they discourage the use of VPN. Deribit (full review) is a derivatives trading platform that offers a huge variety of options contracts, in addition to futures for both Bitcoin and Ethereum. They have grown in popularity, with Bitcoin futures now representing more than 75% of all Bitcoin trade volume. The expiry date of the contracts is mentioned with the nomenclature in most of the exchanges. Delta Exchange launches Quarterly Bitcoin Futures. Because of this, Bitcoin futures can be used to speculate on both the magnitude and direction of Bitcoin price movements—allowing traders to easily go long or short on the market. Those needing support will find a comprehensive help center, which covers most basic concerns and provides in-depth educational material, while direct customer support is available via live chat and email. Additionally, the fees are well higher than the rest of the market at $10 for CME contract, $5 for a CBOE contract, though this includes all additional fees. The website is relatively easy to navigate, and the spot, futures and perpetual swaps platforms are all accessible to beginners and experts alike. Crypto futures are a way to trade the future price action for crypto assets. At the same time, you open a position shorting the equivalent of 10 bitcoin in futures contract, which trade at a 5% premium, or $4200. This is a distinct difference from CFDs or standard margin accounts. Overall, the platform is considered an extremely safe place to trade Bitcoin, as the exchange has never been hacked—using a combination of cold storage wallets and distributed server clusters to stay that way. This means you can focus more on your trading strategies, rather than worrying about dealing with slippage. Here, we summarize five of the most popular. The most advanced crypto derivatives trading platform with up to 100x leverage on Crypto Futures and Perps. We personally would trade CBOE as the contract is worth only one bitcoin to CME’s five, meaning your position can be a good deal smaller. Because all Bitcoin futures platforms enforce margin requirements to prevent bankruptcy and ensure that trade winners get their expected profits, traders are at risk of automatic liquidation if their account balance falls below the required margin requirement. Deribit sports really nice product, and is the top exchange to offer an options market. For those looking to hedge non-bitcoin cryptoasset holdings, this might be a more convenient mechanism. However, what sets it apart from the competition is its focus on crypto options, since the platform offers a huge number of options for both BTC and ETH, with a variety of different expiry dates and strike prices, available to trade with 10x leverage. The downside of this tactic is that oftentimes money is left on the table after you leave the market. Unlike most spot Bitcoin exchanges, Bitcoin futures trading platforms tend to offer extremely low fees, which makes them attractive to both high volume and low volume traders. However, there is some action to be had there, the fees are low, and the spreads are not half bad. BitMEX ( full review) is a futures exchange offering perpetual futures on Bitcoin and ETH, and regular futures... Deribit. If you have problems with verification specifically, or your account in general, the customer support often gets a bit lost in translation to put it mildly. Deribit Bitcoin Options and Futures Exchange, the only place where you can trade bitcoin options and futures Crypto Futures and Options Exchange Your account has been locked by Deribit administrators, please contact support@deribit.com if you wish to unlock the account. It processes $6.2 billion daily, which is higher than Huobi and OKEx, based on Skew’s data. BTC futures were first launched in December 2017, and their initial performance was contrary to the hype that surrounded it. While Cboe Bitcoin futures was the first to launch, the CME Group is considered to be the world’s largest futures exchange. Perhaps the best argument for choosing OKEX over Bitmex is that each token’s future market is collateralized and settled in that token rather than bitcoin. BitMEX. The liquidity of BitMEX and Binance Futures. Nonetheless, the platform still keeps the majority of user funds in cold storage and offers a wide variety of account security options. By far one of the major benefits of bitcoin futures contracts, and arguably the main reason why they’re so popular is the fact that they can be traded on leverage. For security, ByBit stores almost all user funds in cold storage, and offers several customer-side security features, including multiple two-factor authentication options, in addition to a detailed log of recent account actions (e.g. And this is the problem with Deribit – it simply does not yet have the volume of either BitMex or OKEX yet. Cryptocurrency futures aren’t just cheap and efficient to trade, they’re also extremely liquid, which means those with large positions usually won’t have any liquidity issues. However, shorts need to provide massive excess margin – meaning you need to control more than the nominal value to open a short. (Though we greatly prefer CME’s blended index pricing to CBOEs, which uses only Gemini for some unknown reason). In addition to Bitcoin, BitMEX offers a wide variety of regular futures contracts for EOS, LTC, BCH, XRP, TRX, and ADA, as well as perpetual swaps for just BTC and ETH. Bitcoin Futures are traded between market participants. In a normal market, futures contracts are priced at a premium over the spot price, with the difference decreasing over time as the settlement date draws nearer. As such, even small adverse movements can cause significant losses when trading with high leverage. Our Guides, comparison tool, and reviews will help clarify which exchanges is best to buy from. Bitcoin Futures Specifications: Cboe and CME. In brief Bitcoin futures are a type of simple agreement contract to buy or sell Bitcoin at a specific price at a specific future date. This, after US law enforcement pressed charges against BitMEX’s owners for complacency over money-laundering at the beginning of the month. The platform is one of the few exchanges to offer leverage for options products but does require KYC for higher volume users. In cumulative daily volume, Binance Futures is already the largest Bitcoin futures exchange. It seems that the FCA angle is being used to attract institutional money – if that strategy does not work, Cryptofacilities is doomed as they have not built the necessary volume. However, though the platform is relatively simple to use, its fee schedule isn’t so simple: Beyond this, traders may need to pay a variable funding rate, which is shown in the trading interface after selecting a contract. If you were to overlook the 80% margin, you do get access to both CME and CBOE markets, and e-trade is a great overall product. Many traders attempt to manage their risk simply by buying an asset when the price drops or selling it when the price goes up. Bitcoin futures are the most popular derivatives product to get exposure to Bitcoin’s wild volatility. Ameritrade. A: You do not need a digital wallet to trade bitcoin futures when the futures are cash settled or financially settled (as is the case with CME, Cboe, and most other bitcoin futures exchanges). This was also marked by a spike in trading volume, of $66 billion on futures exchanges and $7 billion on spot exchanges. You need to plop down 66% of your position’s nominal value, which sort of defeats the purpose of a futures contract in our somewhat ignorant opinion. And if you do have that minimum covered and are fine trading CBOE contracts, you can do so from Ameritrade’s awesome thinkorswim platform, widely thought to be one of the top products in the market. ByBit also keeps its trading fees plain and simple, charging a 0.075% taker fee, while providing a maker rebate of 0.025% for all perpetual contracts. 1  Bakkt offers daily and monthly Bitcoin futures for physical delivery. Let’s assume that you buy 10 bitcoin at $4,000. You can also trade perpetual contracts with 100x Leverage. Commissions are extremely low; BitMex, who in our view sets the bar for bitcoin futures trading, waives fees entirely for makers or even offers a fee rebate. A positive funding rate requires buyers to compensate sellers by paying a portion of their positions as fees. However, after Sunday’s 10.9% slide in BTC value , the bitcoin futures … Digitex Futures will be the first bitcoin futures exchange to provide traders with such an easy way of placing buy and sell orders in a single click with no extra movements when time is of the essence. Every Bitcoin futures contract has a date linked to it. As it stands, the large majority of cryptocurrency futures exchanges are unregulated. Pick the most appropriate futures platform whether you want to collateralize trades in USD or bitcoin itself. BitMEX (full review) is a futures exchange offering perpetual futures on Bitcoin and ETH, and regular futures on a variety of altcoins. They are beginning to take on some real volume, and should the market mature deribit will find itself in a very interesting position. As it stands, OKEx is among the most popular exchange platforms, and currently serves more than 20 million customers in over 100 countries. Cryptofacilities is licensed and regulated by the UKs FCA, which might be quite appealing to some traders. CBOE – One of the largest futures exchanges in the world. CoinDiligent is the go-to resource for cryptocurrency traders. So why does it lag behind literally every bitcoin-only futures exchange? It is a trusted institutional platform and has recently taken to offering Btc Future’s contracts. Crypto futures not only have the same features as margin trading, but also higher liquidity and lower trading fees. Because of this, traders can expect little to no slippage when trading, regardless of the prevailing market conditions, since most prominent bitcoin futures trading platforms have very low spreads even during times of high volatility. Customers will find a relatively simple user interface with robust charting tools, supplemented by a large variety of order parameters—giving users a great deal of control over their trades. BitMEX takes the security of its users and their funds seriously, which is why the exchange hasn’t been compromised since its launch. Specifically, the leverages, trading hours, and margin requirements are all prohibitively limited for all but institutional investors or high net worth individuals. Binance (Futures) Centralized. Coming in at number two is OKEX which, while a good deal behind Bitmex in our book, is the second and final bitcoin futures exchange in the top echelon. The highly-regulated Chicago Mercantile Exchange has overtaken BitMEX as the derivatives exchange with the second largest amount of open interest for Bitcoin futures contracts, data from Skew Analytics shows. Delta exchanges offers trading in cryptocurrency futures. Despite launching in just 2018, the platform’s Bitcoin futures are already hugely liquid, and typically over $1 billion in 24-hour trade volume. Additionally, OKEx has some of the lowest fees in the market—with a 0.02% maker fee and a 0.05% taker fee for futures and perpetual swaps. I’d be grateful if you could give us your expert opinion on mushino. So what’s good? This means they are not licensed to offer futures products. Hey Andreas, I’ll look into it when I get the chance. Some of the products reviewed provide Bitreview compensation in exchange for advertising - please note that bitreview works to maintain a completely unbiased predisposition to all products and provide information based solely on merit. Check out our Bitmex Review. Bybit, the top six Bitcoin futures exchange by open interest and daily volume, is integrating the price feeds of Chainlink (LINK). 99% of user funds are kept in cold storage, while customers can choose from a variety of additional security options, including two-factor authentication (2FA) and IP pinning. This is more of a risk on smaller, less liquid platforms and is mostly a concern for those trading with a tight stop loss, high leverage or both. This predetermined date is called the Expiry date. Funds must be fully cleared in your account before they can be used to trade any futures contracts, including bitcoin futures. Deribit clearly places a strong emphasis on security and has never been hacked in its more than three years of operation. However, for some reason traders have simply not flocked to cryptofacilities, and unlike Deribit they do not accept US customers which limits the sort of regulatory flaunting that might work to their advantage. This essentially allows even those with limited capital to turn a serious profit if they’re able to accurately predict the market. You can learn more about CoinDiligent on our “About” page. The exchange has a beginner-friendly UI and a simple to use mobile app. Cash. Besides being an excellent tool for speculating on Bitcoin prices and hedging again price risk, Bitcoin futures have several benefits that make them worth considering as part of any solid trading strategy. On the positive side, longs can open positions with a 50% margin, which is better by a good deal than the rest of the US brokerages. ₿348426.2 84 12. Simply due to the eyebrow-raisingly high margin requirements. BitMEX – One of the largest cryptocurrency exchanges. Short term hedging strategies against volatility and downtrends allows for a more active management of that wealth. This essentially means traders can open positions far larger than their balance by temporarily borrowing capital from the futures trading platform or other traders. (Tradestation is also awesome). Traditional futures, on the other hand, have a 0.25% taker fee and 0.05% maker rebate. Trade Bitcoin with Zero Fees. As such, there may be a higher risk trading on unregulated platforms, since traders have few protections in place should anything go wrong. The Chicago Mercantile Exchange, or CME Group Inc., is the world’s largest financial derivatives exchange. When combined with the ability to trade on leverage, futures contracts are an excellent way to extract profits from volatile markets like Bitcoin. However, you will need a digital wallet (or at least a brokerage account) if dealing with physically-settled bitcoin futures – like with Bakkt . By contrast, ByBit’s other futures contracts tend to achieve around $30-$50 million in 24-hour volume. This is because most countries do not consider cryptocurrencies like Bitcoin to be money, and hence these platforms aren’t technically required to apply for a money transmitter license unless they directly handle fiat currencies—and few do. When the market becomes overwhelmed with buyers or long contract holders, then the funding rate turns positive. Bitcoin rolling three-month futures basis Source: Skew The differential between the premium offered by other exchanges and BitMEX has widened over the past 24 hours. Futures trading is common practice in the cryptocurrency space, with CME and CBOE futures exchanges for Bitcoin futures, and among the crypto-based is BitMEX among the most notable exchanges. Please note that the TD Ameritrade margin requirement for bitcoin futures products is 1.5 times higher than the exchange margin requirements, and is subject to change without notice. There are no expirations at Bybit, they use a perpetual swap instrument which tracks the spot market. (they do not make up for the difference). Bitcoin futures volume on CME Group reached $ 0.37 billion in the last 24 hours and rose to 9th place. Want to know more? Whilst not nearly at the liquidity levels of the Bitmex XRP market, only bitcoin may be used there for trading. Best Bitcoin and Crypto Futures Exchanges Bybit. Trading Fees Currently Kill Short-Term Traders OKEX is a global exchange, but very much an East Asian product. Of course, the leverage is adjustable from 1-100, so set it where comfortable. As a blockchain optimized to provide oracles to decentralized finance (DeFi) protocols, Chainlink allows platforms to retrieve reliable market data. A recent redesign presented a much nicer face to the product, and the trading platform and logic are all more than adequate. We are curious to hear your thoughts on the platform. Before CME’s […] As Bitcoin derivatives, these contracts track the underlying value of Bitcoin and describe the terms of an agreement between two parties—a buyer and a seller. Most of these futures contracts can be traded with up to 50x leverage, whereas up to 100% leverage is available for ByBit’s BTC/USD perpetual. That makes no sense from a trader’s perspective. Source: Skew Binance Futures already the biggest Bitcoin futures exchange in volume. ByBit (full review) is a platform that offers perpetual futures for Bitcoin, Ethereum, EOS and XRP. Bitmex provides excellent, Western-oriented support via email or troll box (which can be entertaining and comparatively well-behaved and educated) and contribute research to the market of a very high quality. Deposit in any of these cryptos and trade instantly and anonymously – and get up to $90 in free trading capital while you are at it. Market expectations ranged from a sudden climb in BTC spot price to increase liquidity on spot exchanges. For those looking for a new bitcoin futures home – and a home that allows USD collateralized trades in a regulated format – we have a hard time thinking of good reasons to pick etrade over Tradestation to be honest. Bitcoin futures are traded between market participants, which removes any theoretical conflict of interest between the trader and the exchange. Binance cryptocurrency exchange - We operate the worlds biggest bitcoin exchange and altcoin crypto exchange in the world by volume Traders can now trade bitcoin on the legendary ThinkorSwim trading platform, and take … The US exchanges listed below offer bitcoin futures trading collateralized in USD. If you are are relatively high-net-worth individual that lives in the states and wants exposure to bitcoin without bothering to buy the underlying instrument, this could be for you. The reasons for this are simple: Bitcoin futures exchanges are extremely liquid, offer low fees, and enable the use of high leverage. These can be reduced for higher volume traders and OKB token holders. After OKEX, there is a big drop to number three. While we strive to ensure all information is up to date, it may vary from the information displayed on the products website. Hold your own wealth and never depend on anyone else for your financial security Find the most secure and private wallets with BitReview. Analysis compiled by Coinalyze found that over the course of the past few days, $1 billion worth of open interest has been wiped from leading Bitcoin futures exchanges. To toss in a bunch of futures jargon, this diminishing difference between the spot price and the futures price is called the basis, this normal market condition is termed contango, and when the spot and contract prices meet, which they always must do at settlement, this is called convergence. Bitcoin futures work on the same principles, and such futures contracts for BTC can be bought/sold on Bitcoin futures contract exchanges. So, a distinction that might be valuable to some. Pascal Thellmann is an algorithmic trader mostly focused on market making. What Are Bitcoin & Crypto Futures? Interactive Brokers seems to be integrating bitcoin futures begrudgingly. CME offers monthly Bitcoin futures for cash settlement. A clean and intuitive trading interface is crucial and Binance definitely got the memo. However, the two most popular Bitcoin futures exchanges – CME and CBOE faced two different fates. As such, anybody with a sizeable long position might want to open a short hedge using Bitcoin futures contracts, since these will profit while their spot position declines, protecting them against adverse changes in the market price of Bitcoin. ByBit ( full review) is a platform that offers perpetual futures for Bitcoin, Ethereum, EOS and XRP. One Bitcoin futures contract (each futures contract equals 5 bitcoin) Minimum Price Fluctuation.