Whats is a cryptocurrency derivatives exchange
Derivatives in finance are divided into two parts known as futures contracts and options contracts. In futures contracts, traders can go long or short. Long is when you expect the price of the stock to go up in value. A short trade takes place when the trader sells off his shares or bets against the price of the stock.
The trading of cryptocurrency on a derivative exchange is not very different from a fiat stock market exchange. Cryptocurrencies are replaced by shares of companies. Some of the exchanges listed below offer cryptocurrency derivatives trading leverage of up to 125x.
Cryptocurrency derivatives exchange helps cryptocurrency traders to leverage their cryptocurrency holdings for a higher profit margin. Future and options contracts are subject to very high risk and traders should be aware of the risk involved in cryptocurrency derivative trading.
Deribit is one of the first cryptocurrency derivatives exchanges which was founded by John Jansen in 2016. He founded Deribit because he could not find a good Cryptocurrency derivative exchange which has all the trading features like a regular derivative exchange. He decided to hire a few programmers and start Deribit which offers up to 100x leverage on Bitcoin futures.
The order matching engine is built to perfection by the developers of Deribit with a latency time of less than 1 microsecond. If you are looking for options trading for Bitcoins and other cryptocurrencies then Deribit offers 10X leverage on options trades with various strategies.
Deribit’s developers took over 2 years to develop the product which has a very low latency rate that can handle a large number of cryptocurrency derivative request an any given point.
99% of the cryptocurrencies are kept in cold storage which makes hacking the system nearly impossible. The hot wallet is also encrypted which makes hackers from entering the system very difficult.
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Sign-Up form: https://www.deribit.com/reg-9433.5690
Front page: https://www.deribit.com/reg-9433.5690?q=home
Delta exchange is founded by a team of Indians who wanted to build the most trusted cryptocurrency derivative exchange with fairness, transparency, and integrity.
The cryptocurrency derivative exchange offers up to 100X leverage on Bitcoin and other popular cryptocurrencies. The exchange was founded in 2018 right before the cryptocurrency boom and since then the team with ex-bankers and technology experts have build a cryptocurrency derivatives exchange with low latency which handles a high trading volume.
The company is registered in Kingstown, St Vincent but most of the founders and developers are based in Mumbai, India’s financial capital. The founders have the vision to make Delta exchange most liquid and trusted cryptocurrency derivatives exchange in the world for institutional and retail traders.
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Referral link: https://www.delta.exchange/referral?code=QCPGOR
Referral Code: QCPGOR
FTX is one of the most advanced cryptocurrency derivatives exchanges in the list with quarterly future and perpetual future options. FTX has partnered with Alameda Research, a company that provides liquidity to cryptocurrency exchanges and provides traders with a platform that has been built from the ground up. According to the exchange, the order matching engine has been built from the ground up to handle a large number of trades quickly.
Traders would love the FTX platform as it has one of the best liquidity among its competitors. Along with liquidity, the company also provides leveraged tokens and traders would do not need to micro-manage the risk and collateral.
FTX has over the counter (OTC) trading which is live 24/7. The cryptocurrency derivative exchange also offers trades 20 free coins for new users.
Sam Bankman-Fried, an ETF trader and Gary Wang co-founded FTX and have partnered with most of the well know cryptocurrency companies in the bitcoin and blockchain space.
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ByBit is one of the most customer-focused cryptocurrency derivatives exchange in this list with live chat and multilingual support team. The derivative exchange keeps its user’s cryptocurrency safe from hackers by storing them in a cold wallet.
The order matching engine is advance and can handle over 100k trades a second. It takes about 10 microseconds to complete an order which is a good number for a cryptocurrency derivatives exchange.
According to the company, the user data would be 100% secure and the system has been built to not have any downtime even during an update.
The withdrawals for customers are done three times a day which makes the crypto derivatives exchange trustworthy.
ByBit has been built by founders from the Forex, banking, and blockchain industry. The company also has a highly experienced tech team with backgrounds from Tencent, Nuoya Fortune, Morgan Stanley, and much more.
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Referral Link: https://www.bybit.com/app/register?ref=N8lN6
Referral Code: N8lN6
GlobeDx is a cryptocurrency derivatives exchange where retail and institutional traders transact bitcoin futures. A trader can create quarterly trades and perpetual trades.
Most of the other cryptocurrency derivatives exchange on this list 100X trading leverage but GlobeDx offers 125X trading leverage to boost profits. The developers have also built a derivative exchange integrate with multiple trading applications.
James West is the founder and CEO of GlobeDx he has previously led a family-run fund to $300 million in assets under management and Shaun NG is co-founder and CTO behind the very well developed exchange. Both the co-founders graduated from Cambridge University.