Even though we’ve seen crypto winter and recession in 2022, the popularity of cryptocurrency derivatives exchanges has grown exponentially over the past few years, and 2023 is projected to be a good year for crypto derivatives trading. With so many platforms available, it can be difficult to determine which are the best crypto derivatives exchanges for both experienced traders and newcomers alike. Fortunately, there are certain criteria that can help assess each exchange’s suitability: security measures, execution speed, customer support services, and liquidity levels.
By taking into account these factors, traders have a better chance of finding reputable and reliable exchanges that provide quality service and trading opportunities. A lot of the top crypto derivatives exchanges will be offering access to a wide range of products such as futures contracts, options contracts, or perpetual swaps – all with extremely competitive fees.
What are crypto derivatives and how they can help you more money?
If you’re not yet well-versed in derivatives and want to know what is a crypto derivative, go ahead and read the paragraph below. Crypto derivatives are financial instruments that allow investors to speculate on the price movements of underlying digital assets, such as Bitcoin and Ethereum. They enable traders to take advantage of leveraging their capital, meaning they can potentially make larger profits or losses than if they simply bought and sold a cryptocurrency outright.
Crypto derivative exchanges are platforms that facilitate trading in these products, and by 2023 there will be an even bigger number of these exchanges offering a wide range of cryptocurrency-backed derivatives. These exchanges provide traders the ability to quickly access different markets around the world with low fees and tight spreads, allowing them to diversify their portfolios while taking advantage of opportunities in both bear and bull markets. As crypto continues to become more widely accepted, we expect to see increased demand for crypto derivatives (especially Bitcoin derivatives) exchanges and products next year. By creating a more efficient marketplace, these exchanges will help promote the growth of the digital asset industry while providing traders with the tools they need to maximize their profits.
Best crypto derivatives exchanges list:
- Huobi Global
Best cryptocurrency derivatives exchanges that will most likely keep growing in 2023
Dexilon is one of the leading cryptocurrency derivatives exchanges founded in 2021. The decentralized platform provides self-custody and a comprehensive suite of services, including perpetual futures, cash-settled delivery futures, options, and exotic Derivatives. Its mission is to make cryptocurrency more accessible and secure. Dexilon makes it easy to access the dynamic world of cryptocurrencies without compromising users’ safety. The exchange offers competitive fees, low transaction costs (no gas costs), quick deposits, and withdrawals, as well as a user-friendly interface. It is a reliable and trusted platform for both experienced traders and beginners alike. With the recently upgraded version of the Testnet allowing users to try crypto derivatives trading with zero risk, Dexilon is the perfect place for new investors to begin their journey into the fascinating world of cryptocurrency.
Binance derivatives exchange is the world’s largest cryptocurrency exchange by volume – it holds nearly 60% of the crypto derivatives market. The crypto platform offers a wide range of trading options for traders with all levels of experience, including options and futures contracts. Binance supports more than 600 digital assets and provides advanced charting tools. The platform also provides leverage up to 125x and flexible settlement dates so that users can customize their trades according to their preferences.
OKX is a Seychelles-based cryptocurrency CEX offering derivatives contracts. Established in 2017 as OKEx and rebranded in 2022 as OKX, it now has a new roadmap, continuously expanding the range of features for its users. For example, in August 2022 it introduced spot-derivatives risk offset, becoming the first crypto exchange to do that. The platform offers derivatives including margin futures, perpetual swaps, and options. The platform is highly secure and its low-fee structure makes it an attractive option for traders.
BTCEX is a crypto exchange that offers a whole range of trading services, on both derivatives and spot levels. The platform operates pretty fast, with deposits being confirmed quickly and withdrawals being processed anytime you need (no restrictions on the number of withdrawals per day/week, etc.). The maker and taker fees are quite compelling – 0.02% and 0.05%, respectively. A competitive advantage of this exchange is its risk management – BTCEX established an Insurance Fund, giving them the ability to cover the negative balance of bankrupt accounts.
Founded in 2016, Deribit is one of the biggest crypto options exchanges, however, it’s far from that in terms of crypto futures. It’s a crypto-native exchange and doesn’t give you a chance to deposit fiat currencies. The exchange claims to be completely secure – Deribit keeps 99% of the customer deposits in cold storage meaning crypto hackers will have a hard time trying to steal the funds.
Bybit is a fast-growing crypto derivatives exchange with headquarters in Singapore. It offers 3 contract options: USDT perpetual, inverse perpetual, and inverse futures. The trading features on Bybit include but are not limited to cross and isolated margin trading. You can get 100X leverage with them, which will be the most decisive factor for some investors.
Launched in 2017, KuCoin is a crypto exchange that offers a wide range of coins to trade – over 600 and operates in more than 200 countries. Apart from the essential trading options, KuCoin allows its users to do margin trading, futures, and P2P trading. Compared to a lot of its competitors, KuCoin offers low fees and now it has a feature that helps stand out. The platform has recently launched a Trading Bot designed to simplify the trading process and which is an advisor for you to make better investments.
Huobi Global is a great cryptocurrency exchange with a solid presence in Asia. It’s been operating in China since 2013 and managed to expand its user base far beyond Asia. Huobi is known for being one of the most liquid cryptocurrency exchanges in the world. With over 400 crypto assets and an ecosystem comprising derivatives trading, staking, crypto loans, and more, it’s a great option in 2023, especially for users in Asia. As for security, Huobi Global claims to hold the customer funds in multi-signature cold wallets, which are considered to be safer compared to regular online wallets.
Crypto derivatives market – the state in 2022 and what can we expect in the next year
In 2023, the crypto derivatives market is expected to be more mature than before despite the ongoing recession. Why? The lack of trust in the centralized exchanges made a lot of crypto investors turn their heads towards decentralized exchanges, and DEXs are ready to offer a lot to the flow of new users. With the introduction of new trading tools and crypto derivatives tokens, investors will find it easier and safer to explore this growing asset class. Increased liquidity and competitive fees should also increase the appeal of these products. Industry players such as exchanges and technology providers are already investing in innovative solutions that could help create a secure environment for users while allowing them to take advantage of new opportunities. Ultimately, this could create a more vibrant crypto derivatives market for investors to explore in the future.
Meanwhile, traditional financial institutions are beginning to take notice of the potential growth opportunities afforded by these digital assets. Many banks and other corporate entities are now investing in cryptocurrency trading platforms, as well as exploring ways to integrate blockchain technology into their own operations. With the help of regulatory oversight and innovation from industry players, we should see even greater adoption of crypto derivatives products within the next few years.
Crypto futures exchanges – how they can help you earn more profit
Crypto futures exchanges are an important force in the crypto derivatives market. By 2023, crypto futures trading will have established itself as a major component of the cryptocurrency ecosystem. Crypto futures exchanges offer an easy way to trade digital currencies without having to own them outright. These platforms are also increasingly utilized for hedging strategies and arbitrage opportunities, making them attractive to institutional investors and traders alike. Furthermore, many crypto futures exchanges now offer innovative features such as margin trading, liquidity pools, and other advanced order types.
A key indicator of their growing prevalence is the increasing number of crypto-backed derivative products available to traders. Crypto futures exchanges typically offer a wide variety of derivative products, such as futures contracts, perpetual swaps, and options. These derivative instruments can help traders hedge against price fluctuations or gain exposure to markets with low capital requirements. Furthermore, many platforms also offer leveraged trading capabilities that enable users to amplify their profits by taking on additional risks. All in all, this makes crypto futures exchanges indispensable for anyone looking to trade digital assets with greater efficiency and ease.
Crypto options exchanges – another popular type of crypto derivatives
Crypto options exchanges are becoming increasingly popular in the cryptocurrency space, offering traders a wide range of products for their trading needs. Best crypto options exchanges allow traders to buy or sell contracts that grant them the right to purchase or sell a digital asset at an agreed-upon price point within a certain time frame. These exchanges typically offer hedging mechanisms, allowing traders to limit their risk by taking both long and short positions on digital assets simultaneously. As these platforms are becoming more widely adopted in 2022, we expect to see an influx of new offerings from leading derivatives exchanges all over the world. Additionally, many crypto exchanges are now offering margin trading, which allows traders to leverage their positions with borrowed funds. This feature has the potential to significantly increase profits, but also carries a great amount of risk and should be used with caution.
Concluding thoughts about choosing the most profitable platform
Overall, there is no shortage of quality crypto derivatives exchanges in 2022. By taking into account factors such as security measures, liquidity levels, fees, and customer service support when selecting an exchange, traders can make sure they are using the best platform available for their trading activities. With careful research and analysis, investors can easily find a reputable exchange that provides them with everything they need for profitable trades in the volatile crypto markets. What is clear for sure is that decentralized exchanges will be growing steadily, given that centralized platforms are now much less trusted after the FTX’s collapse.
The best exchanges in 2023 will provide self-custody, an intuitive user interface, low fees, and high liquidity levels. They offer access to a wide range of products such as futures contracts, options contracts, or perpetual swaps – all with competitive fees. Also, with advanced encryption technology, end-to-end data protection protocols, and multifactor authentication processes implemented by the exchanges, traders can rest assured that their funds are secure. With careful research and analysis, investors can easily find a reputable exchange that provides them with the things they need for profitable trades.