Top Crypto Futures and Derivatives Platforms For Investors
Below, we have mentioned a list of the best cryptocurrency exchanges and derivative platforms for buying and selling digital assets. Continue reading to discover the best options for you. However, before that let’s understand the term derivative trading.
Derivative Trading
A contract or product whose price is determined by an underlying asset is referred to as a derivative. Derivative assets include currencies, exchange rates, commodities, stocks, and the rate of interest. The customer and vendor of such contracts can make predictions about the long-term value of their transactions. Each party bets on the future price of the underlying assets to benefit.
Derivative Trading in Crypto
Any cryptocurrency token can be used as the underlying asset in the trading of crypto derivatives. Two parties sign into a money contract to speculate on the value of a cryptocurrency at a later period. Throughout the contract's first phase, the perimeters agree on a selling/buying value for the cryptocurrency on a particular day, regardless of its value. As a result, investors will take advantage of fluctuations in the underlying asset's value by purchasing the currency at a lower price and selling it at a higher price.
The Most Popular Types Of Derivatives In Crypto
Top Crypto Derivative Platforms
Now that we know enough about derivative trading, let's take a look at four great platforms that offer participants various aspects and benefits for their trading experience.
Binance Futures
When it comes to trading, traders have a tremendous number of options with Binance. The top platform not only provides spot dealing, but also allows users to engage in the margin, options, and futures trading 24/7. Buying and selling cryptocurrency has never been easier or more accessible than it is now. It has become one of the most liquid derivatives exchanges in the industry due to its large selection of trading pairs.
Traders can always anticipate their buy and sell orders to be filled quickly and without having to worry about slippage. Another appealing feature of Binance Futures is its extremely cheap cost structure, which ranges from 0.000% to 0.017%. It offers a generously wide range of leverage for accounts with balances ranging from $0 to $50,000, allowing any trader to expand their portfolio regardless of their account balance. What's even more exciting is the opportunity to make money regardless of the market's direction.
SynFutures
SynFutures is a platform that allows traders to exchange derivatives in a centralized and open manner. Furthermore, it enables them to create their markets by constructing their own synthesized contracts on a wide range of assets, including Ethereum compatible assets, cross-chain assets, and off-chain assets.
Synthetic assets are a brand-new feature in DeFi. Simply put it this way, they represent a quality such as a stock, bond, currency, cryptocurrencies, options, futures, NFTs, and interest rates, and trading them on a platform like SynFutures means that all contracts, both existing and newly synthesized, have deep liquidity, and users don't have to worry about holding and storing the underlying assets. It is a blessing in disguise for individuals who haven't had to go through the arduous process of enrolling and onboarding with a variety of exchanges and hence owning wallets.
ByBit Exchange
ByBit Exchange is an excellent platform for experienced cryptocurrency traders looking for a platform with more advanced features. There are a lot of simple exchanges available right now with simple interfaces to help new investors get started in the crypto market, but they're usually not suitable for serious traders.
With a fully-featured platform that provides spot swap, derivatives trading, and margin trading with up to 100x leverage, ByBit alleviates the stress of the discerning crypto trader. The advanced charting interface is incredibly detailed and packed with options, but it's still easy to use. ByBit Exchange supports allow profit and take care of the related crypto-loss. This functionality isn't available on all margin trading exchanges. If you're serious about margin tradeoff, ByBit is undoubtedly a crypto exchange to think about.
Phemex
The Phemex cryptocurrency exchange has the potential to be a full-service platform. It allows you to leverage your money up to 100x your initial investment and accepts credit card deposits. Phemex offers a variety of opportunities to earn money, as well as free period transactions for premium members. Phemex, which was founded in 2019 and is led by over eight former Morgan Stanley executives, is the most recent Bitcoin derivatives trading platform. Phemex takes a 'user-oriented' approach to create its options and provides incredible performance by crypto trade standards.
Final Thoughts
Cryptocurrency derivatives can be exchanged on both centralized and decentralized platforms. Exchange owners might use cryptocurrency derivatives exchanges to reach out to new investors. A crypto derivatives trading platform is more flexible than spot margin trading, as it provides you access to markets that you wouldn't have access to otherwise.