Crypto derivatives are a class of financial assets that are becoming more used in 2020 and today there are new platforms that are now providing crypto derivatives trading.
I’m going to outline what crypto derivatives are, the different types including futures, options and perpetual swaps, and where to trade crypto derivatives in 2020.
What Exactly are Crypto Derivatives?
Cryptocurrency derivatives are financial instruments that derive their value from cryptocurrencies, and act as a way for traders to profit from trading crypto without having to own it.
Crypto derivatives can be divided into 3 groups.
Crypto futures are agreements for the trade of an amount of cryptocurrency at a certain time, date, amount and price.
Crypto options are the same as futures, except that the agreement is optional and not required to be completed.
Crypto perpetual swaps are the same as crypto futures except that the agreement is settled in USD instead of Bitcoin.
Where Can Crypto Derivatives be Traded?
PrimeXBT
PrimeXBT is the world’s leading multi-asset margin trading platform listing a wide range of crypto derivatives, as well as traditional assets like stock indices, forex pairs, metals and commodities.
Leverage of up to 100x is available for all cryptoassets, as well as leverage of up to 500x for all traditional assets.
The platform has built its name on providing advanced tools, low fees, and a wide range of opportunities for novice traders and experts alike.
Deribit
Deribit is one of the newer trading platforms in the crypto derivatives space, and has already worked to create exposure as a platform that focuses only on these assets.
There have been mixed reviews of the platform, with claims Deribit’s customer support is substandard.
Saying this, Deribit is certainly worth taking a look if you’re interested in trading crypto derivatives as they have a wide range of futures and options available.
In Conclusion: Crypto Derivatives
Crypto derivatives are becoming very popular in 2020 and it looks like they’re here to stay.
Many new traders are hearing about them and converting from normal cryptocurrency trading to trading derivatives.
It will be interesting to see if this trend continues throughout 2020 and beyond.