Bitcoin futures trading picture

Best Crypto Futures Exchange USA – Trade Derivatives from US!

Crypto Futures USA – Summary

There are two options to trade futures from the USA

  1. Signup with one of the few US-regulated crypto exchanges and trade futures and derivatives (BTCC, Kraken, BYDFi)
  2. Use an exchange with no KYC requirements (Additional precautions might need to be taken like VPN etc)

We can’t recommend number 2, but we must provide accurate information. There might be risks involved in using a VPN to sign up with certain exchanges we are unaware of.

Trade Crypto Futures from the USA

A Bitcoin trading calender with settlement day for futures trading

A Bitcoin trading calender with settlement days for futures trading.

Crypto futures trading in the USA is subject to strict regulations by financial authorities.

Therefore, only BTCC, BYDFi, and Kraken offer futures and derivatives on the US markets.

BTCC has the most derivative trading volume and perpetual markets. In addition, they have the best crypto signup deposit bonus.

Crypto Exchange with non-KYC withdrawal limits

The table below shows the non-KYC withdrawal limits for some of the top cryptocurrency trading sites.

Its possible to sign up, trade and withdraw a certain daily amount on these exchanges without fulfill any KYC documents.

What are Bitcoin and crypto futures?

Bitcoin futures are a category of crypto trading instruments.

Bitcoin futures allow investors to speculate on the future price of Bitcoin. Investors can get exposure to Bitcoin or any cryptocurrency without owning the underlying asset. 

Important is that Bitcoin futures are a derivative of the underlying asset, in this case, Bitcoin. A crypto derivative does not trade at the same price as the spot market.

A Bitcoin futures contract is an agreement to buy or sell Bitcoin BTC at a specific price at a particular date. With the Bitcoin and crypto futures trading instruments, you can speculate in both bull and bear markets.

  • By going long on Bitcoin futures, you commit to buying Bitcoin at a specific price, at a certain date, in the future.
  • By going short on Bitcoin, you commit to selling Bitcoin at a specific price on a certain date.

Crypto Futures VS Crypto Spot Trading

Futures contracts and spot trading are two utterly different trading products.

The most significant difference is owning the underlying asset when spot trading. So, for example, if you buy Bitcoin for your USD, you acknowledge that Bitcoin.

However, the futures contract is a derivative financial agreement that obligates the parties to transact an asset at a predetermined future date and price.

Read more about the lowest crypto spot trading fees.

Why are crypto futures not widely available in the USA?

It’s hard to get a U.S. license for cryptocurrency exchanges to derivatives trading to retail investors.

BTCC Crypto Futures Trading for USA

BTCC 11000 Crypto Signup and Welcome deposit bonus

BTCC launched in 2011 and is one of the oldest crypto derivative exchanges. BTCC only has perpetual and future markets with no spot market.

BTCC, recognized as the world’s longest-running cryptocurrency exchange, operates in the US market with a crypto license issued by the Financial Crimes Enforcement Network (FinCEN). The exchange, with over 12 years of operation, focuses on providing safe trading services, employing advanced technology through various market cycles. BTCC emphasizes the importance of a fair trading environment for cryptocurrency enthusiasts globally and holds licenses in the US, Canada, and Europe, underscoring its commitment to legal compliance and secure trading practices

There are no KYC requirements for crypto deposits and withdrawals.

  • Trading Fees: BTCC offers competitive trading fees, positioning it in the low to medium fee range for crypto futures trading fees for being available in the US.
  • Deposit Fees: BTCC does not charge deposit fees for cryptocurrency deposits. Read more about fiat deposit fees.
  • KYC Requirements: You can trade on BTCC without any KYC requirements but there are withdrawal limits. See full article about non-KYC crypto exchange and withdrawal limits.
  • Restricted Countries: BTCC primarily focuses on the Asian market but is open to international traders; however, it’s important to review the availability in specific countries.
  • Operational Years: BTCC has been operational since 2011.
  • Headquarters: BTCC is headquartered in Hong Kong, China.
  • Security Incidents: BTCC has not experienced any significant security breaches or hacks as of the last update in September 2021.
  • Trading Volume: 4th place on Coingecko.
  • Number of Futures Markets: 2
  • Number of Perpetual Markets: 53
Bydfi crypto exchange logo

BYDFi Crypto and Bitcoin Futures for the USA

BYDFI signup bonus

BYDFi Exchange, a notable player in the US cryptocurrency market, operates with a Money Services Business (MSB) license issued by the Financial Crimes Enforcement Network (FinCEN). Its registration number with FinCEN is 31000215482431. This regulatory compliance enhances BYDFi’s credibility and trustworthiness in the fast-paced world of crypto trading.

In the United States, BYDFi distinguishes itself by offering a wide variety of trading options. It provides traders access to over 400 different cryptocurrencies, significantly more than many other US-based exchanges. This extensive range allows traders to diversify their portfolios and take advantage of various market conditions. In terms of leverage, BYDFi stands out by offering up to 150x leverage for perpetual contracts, surpassing the typical maximum leverage of 100x or 125x found at other US exchanges.

Additionally, BYDFi is known for its user-friendly platform, offering seamless trading experiences complemented by advanced trading tools. These tools assist users in tracking positions, analyzing market trends, and making informed trading decisions.

  • Trading Fees: BYDFi offers competitive trading fees, placing it in the low to medium fee range for crypto futures trading.
  • Deposit Fees: BYDFi has minimal or no deposit fees for cryptocurrency deposits. Read more about fiat deposit fees.
  • KYC Requirements: It’s possible to trade on BYDFi without any Know Your Customer (KYC) verification and you can withdraw up to 0.5 BTC daily.
  • Restricted Countries: BYDFi is available to traders in the USA and adheres to the regulatory requirements specific to the region.
  • Operational Years: BYDFi has operated in the cryptocurrency futures trading market since 2019. BYDFi started as BitYard in 2019/20.
  • Headquarters: BYDFi is headquartered in Singapore.
  • Security Incidents: Since the last update in September 2021, BYDFi has not reported any significant security breaches or hacks.
  • Trading Volume: Not on Coingecko
  • Number of Futures Markets: 0
  • Number of Perpetual Markets: 165

Kraken Crypto and Bitcoin Futures for the USA

Kraken, a prominent cryptocurrency exchange, maintains several registrations and licenses to operate in North America. In the United States, Kraken is registered as a Money Services Business (MSB) with the Financial Crimes Enforcement Network (FinCEN), under the registration number 31000239561651. 

Additionally, Kraken Bank operates under the supervision of the Wyoming Division of Banking with a Special Purpose Depository Institution charter, enabling it to conduct specific interstate, digital asset-related services. 

In Canada, Kraken holds MSB registration with FINTRAC, enhancing its regulatory compliance and ability to serve Canadian clients. These registrations and licenses demonstrate Kraken’s commitment to regulatory compliance and secure operations in the US market.

  • Trading Fees: Kraken offers a VIP-tiered fee structure, with lower fees for high-volume traders, positioning it in the low to medium fee range for crypto futures trading.
  • Deposit Fees: Kraken generally does not charge deposit fees for cryptocurrencies. Read more about fiat deposit fees.
  • KYC Requirements: Kraken requires users to complete KYC verification to access its futures trading services.
  • Restricted Countries: Kraken has a global reach, but it is essential to check the specific services available in each country due to regulatory variations.
  • Operational Years: Kraken has been operational since 2011.
  • Headquarters: Kraken is headquartered in San Francisco, California, USA.
  • Security Incidents: Kraken has maintained a strong security record and has not experienced any major security breaches.
  • Trading Volume: Medium. 25th place on Coingecko.
  • Number of Futures Markets: 30
  • Number of Perpetual Markets: 110

CEX IO Signup bonus 200 USDT

CEX IO SignUp Bonus 200 USDT - Trading Fees - Review 2024

Below are a few ways to become eligible and receive incremental Welcome Bonuses on Exchange Plus:

  1. Register on Exchange Plus to receive 50 USDT.

  2. Make your first deposit worth at least 20 USDT on Exchange Plus to receive 50 USDT.

  3. Conduct your first trade worth at least 20 USDT on Exchange Plus to receive 100 USDT.

 

CEX IO Derivative Trading

Derivative trading on CEX.IO allows traders to speculate on the future price movements of various crypto assets without having to own or hold the underlying asset. This offers several advantages, including:

  • Enhanced Leverage: Derivatives allow traders to magnify their gains or losses by using leverage. This means that they can trade with a smaller initial investment, potentially increasing their profits but also exposing themselves to greater risk.

  • Hedging and Arbitrage Opportunities: Derivatives can be used to hedge against existing positions or to exploit arbitrage opportunities between different markets.

  • Greater Market Access: Derivatives provide traders with access to a wider range of markets and trading strategies than is possible with spot trading alone.

CEX.IO offers a variety of derivative trading products, including futures, options, and swaps. These products are traded on the CEX.IO Exchange Plus platform, which provides advanced order execution and deep liquidity.

Here are some of the key features of derivative trading on CEX.IO:

  • Variety of Products: CEX.IO offers a wide range of derivative products to suit the needs of different traders.

  • Advanced Order Execution: CEX.IO Exchange Plus provides advanced order execution capabilities, including limit, market, stop-limit, and stop-loss orders.

  • Deep Liquidity: CEX.IO Exchange Plus has deep liquidity, which means that traders can easily enter and exit positions without significant slippage.

  • Margin Trading: CEX.IO allows traders to use margin trading, which can magnify their gains or losses.

  • Margin Calls: Traders must maintain a minimum margin level to avoid margin calls, which occur when their account equity falls below a predetermined level.

  • Risk Management Tools: CEX.IO offers a variety of risk management tools, such as stop-loss orders and position sizing guides.

Derivative trading can be a powerful tool for experienced traders, but it is important to understand the risks involved before using it. Derivatives are leveraged products, which means that traders can lose more money than they invest. Additionally, derivatives are subject to market volatility, which can cause sudden and large price movements.

Crypto Futures in the USA

Understanding Leverage, Risks, Fees, and Regulations

Cryptocurrency futures trading has gained significant traction in the financial market, offering a unique opportunity for traders to speculate on the future price movements of digital assets. In the United States, this form of trading has become increasingly popular due to the potential for high returns and diversification strategies.

To comprehend crypto futures trading in the USA, it’s essential to grasp what futures are, the leverage involved, associated risks, trading fees, fee reduction mechanisms through VIP tiers, and the regulations required for offering futures trading to US customers.

Understanding Crypto Futures

Crypto futures are financial contracts where two parties agree to buy or sell an asset at a predetermined price on a specified future date. Regarding cryptocurrency futures, traders speculate on the future price of digital assets such as Bitcoin, Ethereum, or other cryptocurrencies.

Leverage in Crypto Futures

Leverage trading is a crucial aspect of futures trading, allowing traders to control a more substantial market position with a relatively minor capital investment. In the USA, futures trading platforms typically offer high leverage ratios ranging from 2x to 100x or more, depending on the platform and the cryptocurrency being traded. However, higher leverage comes with increased risk, potentially magnifying gains and losses.

Risks Involved in Futures Trading 

Futures trading involves several risks, including market, leverage, liquidity, and regulatory risks. The inherent volatility of the cryptocurrency market amplifies these risks. Leveraged positions can lead to significant losses, and traders must manage risk effectively through proper risk management strategies.

Trading Fees in Crypto Futures

Trading fees are a standard aspect of futures trading. These fees typically consist of a maker fee (for providing liquidity) and a taker fee (for taking liquidity). The level of fees can vary between exchanges. In the USA, trading fees for crypto futures generally fall in the low to medium range, but they can vary based on the platform and the trading volume.

VIP Tier Levels for Lower Fees

Many futures trading platforms offer tiered fee structures where users can reduce their trading fees by achieving higher crypto trading VIP tier levels. The VIP tier is often based on the account’s latest 30-day trading volume or total assets. As traders move up the VIP tiers, they can benefit from reduced fees, ultimately enhancing their crypto trading profitability in the long run.

Regulations Required for Offering Futures Trading

Platforms must comply with regulatory requirements set by the Commodity Futures Trading Commission (CFTC) and other relevant regulatory bodies to offer futures trading services to USA customers. Compliance includes adhering to anti-money laundering (AML) and know-your-customer (KYC) regulations to ensure a secure and transparent trading environment. Obtaining the necessary licenses and registrations is paramount to operate legally and maintain the trust of the trading community.

In summary, crypto futures trading in the USA presents an exciting opportunity for traders, offering potential for profit through price speculation. However, traders must be mindful of the associated risks, effectively manage leverage, and carefully consider the futures trading fees and regulations to make informed decisions and successfully navigate this dynamic market.

Crypto Futures VS Crypto Perpetuals

Crypto futures and crypto perpetual contracts have one important thing in common and one essential property that separates them

  • Both crypto futures and perpetual are crypto derivatives speculating the underlying asset in the future
  • Futures expires and settles on a certain date in the future while perpetuals are like open futures with no ending date

Crypto Futures Trading Terms

  • Cash Settlement – This is a settlement method used in futures trading. Upon expiration date, the seller of the financial instrument does not deliver the actual (physical) underlying asset but instead transfers the associated cash position.
  • Collateral (Initial margin) – The collateral is the cash deposited in the account or securities provided and represents the funds available to the account holder for further trading. Example: If you buy Bitcoin futures with $1.000 and 3x leverage, your position is worth $3.000, but your collateral is $1.000. If Bitcoin decreases 10% in price and your position is worth $2.700, your collateral is $700. 
  • Margin call – A margin call occurs when the value of an investor’s margin account falls below the required amount. The required amount differs for different trading sites, but you will be asked to deposit more funds.
  • Force liquidation – Force liquidation happens when your margin is below a certain level. This level is lower than the level for a margin call.
  • Settlement currency – The cash settlement will be transferred in the settlement currency.

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