Best Platform To Trade Crypto Futures – Summary: As the demand for cryptocurrency futures trading grows, it becomes more important for investors to identify the best platforms for trading. This strategy allows investors to take advantage of cryptocurrency price volatility and profit from both ups and downs. However, navigating the vast array of cryptocurrency futures platforms can be daunting.
In this analysis, we highlight the top 5 cryptocurrency futures trading platforms. Our evaluation focuses on critical metrics such as security, transaction fees, market liquidity and user experience. Here’s a quick look at the best platforms we’ve tested:
Best Platform To Trade Crypto Futures
Our ranking of the top 5 cryptocurrency futures and derivatives platforms is a calculated process. We evaluated each platform’s security features, trading fees, market liquidity and user experience. The security evaluation included testing encryption and fund storage protocols, while the fee evaluation compared the platform’s pricing to industry standards. We examined market liquidity by order book depth and breadth, and analyzed the user experience by evaluating ease of use, support and educational resources.
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Remember, this ranking serves as a guideline, not financial advice. Your personal needs and risk tolerance should determine your platform choice. Now let’s look at a more detailed overview of each of the top 5 platforms.
ByBit has emerged as the fastest growing crypto futures trading platform. It offers more than 400 coins for trading without requiring KYC or ID verification from customers. ByBit is one of the few exchanges that allows traders to speculate on all crypto assets available on their trusted and proven platform with up to 100x leverage.
They are considered the best futures exchange for digital assets due to their deep liquidity and low fee structure, 0.05% for receiver orders and 0.01% for producer orders. Since the recent bankruptcy of FTX, ByBit has become a favorite target for traders. For more information, see our comprehensive Bybit review.
Binance is recognized as a leading global platform for trading Bitcoin futures and crypto futures. The platform supports trading of various cryptocurrencies including Bitcoin, Ethereum, Aptos and Solana with leverage up to 125x against Tether (USDT). Traders worldwide can easily create a Binance Futures account in minutes and take advantage of the best bitcoin and crypto futures trading platform available on any exchange.
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In addition to its extensive features, Binance offers its users high security and liquidity, making it an ideal choice for institutional investors and retail traders. For more information, read our comprehensive Binance review.
Phemex is a new derivatives platform that has grown to over 5 million users since launching in 2019. Their exchange offers deep liquidity in over 150 crypto pairs with up to 100x leverage on their secure and high performance centralized trading platform. FEMEX is widely regarded for its low fees, tight spreads and feature-rich exchanges that include strikes, spot trading, options and more.
Another advantage of Femex is that they do not require verification or KYC to register and trade. This means you can register with an email address and password and deposit stablecoins or other digital assets like Bitcoin and Ethereum to start trading. For a deeper dive, read our extensive Femex review.
EToro is the world’s most comprehensive multi-asset brokerage platform, enabling traders to trade a variety of assets including cryptocurrencies, stocks, commodities and more. It is highly regarded for its low fees, fast fiat currency investments and diverse asset selection.
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A distinct advantage of this platform compared to other exchanges on this list is that it allows traders to trade crypto stocks and ETF futures. This means traders can buy long or short stocks such as Coinbase, Robinhood and Microstrategy, which correlate with the price of crypto assets. For more information, read our comprehensive eToro review.
Dydx is a decentralized finance (DeFi) platform built on the Ethereum blockchain. It offers a range of financial products and services, including margin trading and borrowing, lending and trading of crypto assets. Designed to be transparent, secure and accessible to a wide range of users, the platform operates using a decentralized governance model, where users make collective decisions about the direction and development of the platform.
The platform’s use of smart contracts and blockchain technology helps ensure that transactions are secure, transparent and error-free. They have deep liquidity to trade the best crypto pairs like BTC, ETH, AVAX, NEAR, LUNA, ONE. Read our DYDX review for more information.
Crypto futures offer two major advantages to investors and speculators in digital assets. The most common reason for sophisticated and institutional investors is to hedge price risk. Derivative contracts allow investors to reduce the risk of price falls by taking a short-term position. This can help reduce losses by providing additional profits that protect against holding spot assets such as BTC and ETH.
Trading Journal (stock, Forex, Futures And Options)
Another common reason is to speculate on price direction. Crypto-leveraged trading allows traders to truly speculate on the asset even with 100x leverage even if they are very confident.
Trading crypto futures and derivatives is easy thanks to a number of highly liquid centralized trading platforms. If you are new to futures trading, follow this short 4-step guide on how to get started without the need for KYC or verification.
In most countries, crypto futures trading is generally legal, mirroring the treatment of regular cryptocurrency trading. However, the specific legality and regulation of crypto futures may vary by jurisdiction. In the United States, trading in crypto futures is legal and falls under the regulatory purview of the Commodity Futures Trading Commission (CFTC), which considers crypto assets as commodities and therefore claims jurisdiction over futures contracts and other derivatives of these assets.
Despite US legal status and CFTC regulation, other countries may have different rules and regulations. Therefore, it is recommended that you review the laws and regulations of your specific country before engaging in crypto trading activities, including crypto futures trading.
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Trading futures and derivatives involves different fees than standard spot trading on traditional exchanges such as Coinbase or Kraken. Here are some common fees and costs associated with trading cryptocurrency futures.
In conclusion, cryptocurrency futures trading is an exciting way for investors to take advantage of the ups and downs in the crypto market. In this guide, we’ve explored five of the best crypto futures exchanges: Bybit, Binance, Phemex, eToro and DYDX, each offering unique features, security measures and different fees.
Whether you are a beginner or an experienced trader, these platforms cater to different trading needs and preferences. As they vary from jurisdiction to jurisdiction, it is very important to understand your country’s crypto futures rules before diving in. So arm yourself with this knowledge and start exploring the dynamic world of crypto futures trading.
Co-founder and former investment banker (finance MBA) became full-time analyst and head of research at Buy Bitcoin Bank. Leaving traditional finance to pursue my interest in digital assets and decentralized finance.
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A guide to the 5 best crypto trading platforms in Sweden licensed by the Swedish Financial Supervisory Authority (SFSA). As cryptocurrencies like Bitcoin and Ethereum gain traction in the mainstream media, newcomers are finding their way to exchanges. Spot trading welcomes risk-averse people to buy digital assets and hold them for the long term, while futures trading attracts traders interested in capitalizing more on market movements.
As cryptocurrencies go through high levels of volatility, traders may want to optimize their profits, and Bitcoin futures can provide them with that opportunity.
Crypto futures trading differs from spot trading in several ways, as participants do not need to have any assets to participate. Instead, traders look to buy or sell derivative contracts that represent the value of a given crypto at a specific future date.
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Basically, futures trading allows investors to speculate on the future value of a cryptocurrency. Traders can go long to provide a price advance, or go short in anticipation of a price decline.
Leverage provides better capital efficiency as traders do not need to unlock the full amount of capital. This increases potential returns and risk, which is why traders should always be cautious.
A leverage of 2x or 5x would be considered appropriate for those new to futures trading. Especially for traders who want to use crypto derivatives as a hedge for their portfolios. If an asset performs badly, or against speculation, the loss of a futures trade against this result can be offset by using a certain amount of leverage.
Investing in cryptocurrency futures provides more opportunities and possibilities for growing your portfolio. Simply put, the leverage available in futures trading can easily improve an entire portfolio within a single trade.
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Another reason for participating in futures is hedging, as mentioned earlier. Saving a portfolio is challenging, especially in crypto currencies. A strong defense line for any portfolio is a futures contract, it works as a hedge against the investment trend.