This crypto trading guide article compares the best crypto derivatives exchange trading platforms for US customers.
- Derivative trading is the opposite of spot trading
- Crypto derivatives are futures, perpetual, options, leveraged tokens and CFDs
- Bybit is the best crypto derivative exchange in terms of low fees and the best signup bonus of $ 30,000
Crypto derivatives are high-risk crypto leverage trading instruments that can trade with high leverage. So always be careful, and don’t use funds you can’t afford to lose.
List: Best Crypto Derivative Exchanges
In the table below, we have listed all the best crypto derivative trading platforms.
Also, you can see the number of futures and perpetual markets on each exchange.
- Futures are contracts between two investors that bet on a cryptocurrency’s future price on a specific date (expiry date).
- A perpetual contract is a crypto futures contract without an expiry date.
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Also, don’t miss Crypto sign-up bonuses with terms and conditions.
What are crypto derivatives?
➤ Derivatives are trading instruments that derive their values from an underlying asset.
➤ The underlying asset can be stocks, bonds, commodities, cryptocurrencies, interest rates, or market indices, as seen in the image from Investopedia below.
The cryptocurrency market’s most common and traded derivative trading instruments are Bitcoin futures and Bitcoin perpetual.
Other common crypto derivatives are
- Crypto futures trading
- Crypto perpetual trading
- Crypto option trading
- CFD crypto trading
- Leveraged tokens issued by Binance
On the other hand, Crypto margin trading uses the spot market order book; when you do margin trading, you buy the underlying asset. So, therefore, margin trading is not a derivative trading instrument.
Derivative vs. spot trading
Derivative and spot trading are opposites of each other.
Leverage Trading VS Derivative Trading
It’s possible to do crypto leverage trading with all different crypto derivatives. Still, the opposite is not valid. All non-derivative products are not non-leverage trading products. There is margin trading, for example. Margin trading is spot trading with leverage.
Decentralized vs. centralized derivative trading
Many decentralized derivate trading platforms are competing with the centralized trading sites. Here, you minimize the counterparty risk.
Binance – Best Crypto Derivative Exchange
Binance offers derivatives cryptocurrency trading in a few different products. The main categories are taken from the header menu called derivatives on the Binance trading platform. In the menu, you can see
- USDT Futures
- Coin Futures
- Leveraged Tokens
- Binance crypto options
- Binance dual investment
USDT futures on Binance are traded with no expiration date and with leverage up to 125x.
COIN futures are traded as token margins and come with expiration dates and without expiration dates. The leverage is up to 125x.
Binance leveraged tokens are traded with a leverage of up to 3x and no risk for liquidation.
Binance Derivative Exchange Pros and Cons
➕ Many different crypto derivatives
➕ Great liquidity and trading volumes
➕ Low fees
➖ Many geo locations are not allowed to trade derivatives on Binance, and they are not transparent about this
Bybit – Number 2 Crypto Perpetuals Derivate Site
Bybit is one of the best crypto derivative exchanges on the market. Here, you can trade various derivatives with a significant trading volume and liquidity in most markets.
Bybit is famous for excellent crypto deposit bonuses, which can be up to $30.000 from time to time.
Bybit is often recommended by some of the top Youtube influencers and can be used by several.
Bybit has, as one of few, USDC settled perpetual with high leverage.
Bybit Derivative Exchange Pros and Cons
➕ Accept customers from more geo-locations than Binance
➕ Offer similar crypto derivative trading fees as Binance if you compare USDT-denominated perpetuals (Binance offers lower fees for BUSD-denominated perpetuals)
➕ Offer USDC-denominated perpetuals and inverse perpetuals
➕ Many perpetuals listed (196)
➕ Ranks on the 6th place with regards to spot trading volumes on Coingecko
➖ No futures markets but only perpetuals
Bitget – Crypto Trading Perpetuals Derivatives
Bitget is one of the most liquid crypto trading sites regarding perpetuals trading volume.
Bitget ranks as the 4th largest crypto exchange in perpetual trading volume, according to Coingecko.
Bitget Crypto Futures Exchange Pros and Cons
➕ Number 4 on Coingecko Perpetual Trading Volume Ranking
➕ Many offers in terms of signup bonuses and competitions
➕ 108 Perpetuals listed
➖ No futures
➖ Ranks 13th on Coingecko with regards to spot trading volumes
Kucoin Crypto Derivative Trading Platform
Kucoin is one of the best crypto derivative exchange trading platforms. You find many markets with a decent trading volume for each trading pair. However, Kucoin is also famous for having many listings, and there is a possibility you will find missing markets listed on Kucoin.
In addition, Kucoin charges among the lowest fees and have an excellent community reputation.
Kucoin Crypto Futures Exchange Pros and Cons
➕ 213 Perpetuals listed
➕ Low fees
➖ Not the best trading volumes
Kraken cryptocurrency derivatives trading platform
Kraken is one of the most trusted crypto trading platforms, and recently, they bought Crypto Facilities to incorporate futures trading into the Kraken family.
As shown in the screenshot below, Kraken futures is still separated from Kraken spot trading.
With Kraken, you can trade derivatives with up to 50x leverage and seamlessly transfer between Kraken spot and Kraken futures. Read more about Kraken in our Kraken review.
➕ Regulated US exchange with long track record
➕ High security and proof-of-funds
➖ High fees compared to non-US exchanges
OKX – Most Listed Crypto Futures Derivatives
OKX crypto trading exchange has the most listed traditional futures markets for crypto trading with its 603 trading markets.
According to Coingecko, no other exchanges list more than 100 futures markets.
In addition, OKX also has good trading volumes ranking 6th place for derivative trading volume on Coingecko.
➕ Many futures
➕ Great welcome signup bonus
➕ Low futures trading fees
➖ Not available in the US.
➖ Mixed reputation from users
