Top 9 Bitcoin and Crypto Futures and Derivatives Exchanges in 2021
As a cryptocurrency trader, I’m sure you’ve heard about future contracts. If not, then you’ve come to the wrong place. These contracts are very risky and only for experienced traders. Make sure you know the basics of spot trading, before you start trading with futures and leverages.
That said, before we get down to listing the top 9 Bitcoin and Crypto futures and derivatives exchanges in 2021, let’s start by defining what a future contract is? So, without further ado, let’s get started?
What is a futures contract?
Typically, a futures contract speculates that the price will go up or down, and you will sell or buy at some point or date in the future. More importantly, a future contract grants you the chance to trade on a particular cryptocurrency coin without necessarily owning the currency. Meaning, if you are trading a specific asset, you will only invest on the movements rather than hold the crypto-coin.
One of the most popular futures contracts are Bitcoin futures. These are speculation contracts based on the Bitcoin asset. For instance, as a trader, you can predict that the Bitcoin price will rise in the future, so you enter into a contract and trade with a Bitcoin seller so you can buy the coins when the price is hit.
That means you will only get the coins once the price of Bitcoin reaches the agreed-upon price. The same thing happens when you speculated that the price goes down. Now that you understand how future contracts work, it’s time to list the top 9 cryptocurrency exchanges with future contracts in 2021.
Top 9 future Bitcoin and crypto contracts exchanges in 2021
You can check out our top 9 to see which exchange suits you the best.
#1 Binance Futures
Binance is one of the fastest-growing cryptocurrency exchanges in the world. What’s more, Binance futures are built-in within the Binance exchange. It’s a relatively new aspect in the world since Binance Futures was founded in 2020. This new feature supports long and short positions in the crypto market. More importantly, future contracts on the Binance platforms come with a leverage of up to 125X.
Because the future contract feature is integrated on the platform it gains more exposure. Binance was founded back in 2017 by Changpeng Zhao, and he is currently the CEO of the company. The headquarters of Binance are in Malta after moving from China. The company offers futures contracts on different cryptocurrencies, including Aave, Algorand, Bitcoin, Bitcoin Cash, Dogecoin, and Ethereum.
Currently, the volume of spot BTC/USDT is lower compared to the Bitcoin futures. That shows that the futures contract is snowballing and extremely popular. On this platform, you can hedge your position hence improving your trading risk management. That will also help protect your crypto-portfolio, even during the bearish market. The best part about Binance futures is that you don’t have to own the assets to trade.
10% discount on all Binance Futures trades + 20% lifetime discount
#2 ByBit exchange
Another cryptocurrency platform that has future contracts is ByBit. Without a doubt, ByBit is the most popular leverage website in the crypto-world. That’s because the platform offers a leverage of up to 100X on the Ethereum and Bitcoin trading pairs. More importantly, the site provides perpetual contracts that focus on the price change and not the physical asset.
ByBit has relatively high liquidity with low spreads. Also, the site is designed with a state-of-the-art blockchain tech that can quickly process close to a hundred thousand transactions per second. The best part about ByBit is that they listen to their customers. Service downtimes are one of the factors that you (hopefully) won’t see here. Hence the site is available almost all of the time.
What surprises most people is the futures contracts on this platform are worth 1USD. That’s much lower compared to the value of other contracts in different exchanges. ByBit also offers future contracts for EOS and Ripple. However, these contracts have lower leverage, which maxes out at 25X. But the exciting part is that this is one of the few platforms offering a futures contract for the EOS coin. That could be the difference between ByBit any other future contract platforms.
As much as the maximum leverage that you can use on ByBit is 100X, it’s not constant. If you have enough funds in your account, the site can leverage it to achieve your desired contract. That helps to protect the platform from the risk of large positions.
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#3 Phemex future contracts
Phemex offers both spot and margin trading to its clients. That makes it one of the most competitive cryptocurrency exchanges to beat in 2021. On top of that, Phemex provides a 100X leverage on its cryptocurrencies. Phemex has a lot in common with Binance and ByBit. That’s why Phemex is listed in our today’s top 9 cryptocurrency exchanges with future contracts in 2021. Registration on the Phemex website is relatively easy, and you can start your trading journey in a matter of minutes.
The company was founded back in 2019 by Jack Tao, and it’s been on the rise ever since then. Tao is a former Morgan Stanley veteran and has enough experience in the cryptocurrency world. That said, the exchange is owned by the Phemex Financial Company, which is a legal company in Singapore.
Phemex offers its users the chance to create multiple trades with the same account, a rare opportunity in the crypto world. What’s more, as a trader on Phemex, you have access to a 100X leverage, which could increase your gains in any future contract. The best part about Phemex is that they offer low fees, so you have maximum benefits from your trades.
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#4 KuCoin Futurus exchange
KuCoin started as a platform that only accepted cryptocurrencies. That means you couldn’t deposit any fiat currencies. Thankfully, with their partnership with Simplex, KuCoin has now bridged the gap between cryptocurrencies and fiat currencies. KuCoin Futures was first launched in 2019, which allows traders to utilize Bitcoin futures contracts. What’s more, KuCoin is planning to challenge the likes of BitMEX in the future contract industry. And with that in mind, KuCoin offers leverage of 100X.
Currently, KuCoin only offers futures contracts for Bitcoin and Ethereum. However, the platform aims to provide future contracts on most of the cryptocurrencies available today. The site also has a low fee, which makes trading on it a smooth ride. To start your future contract trading on KuCoin, you will have to enable the contract trading button.
Once that happens, you are set. But you need to remember that future trading also carries a high risk, so you need to learn about it before you start trading. Like any other investment, future trading requires research and knowledge of the market.
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#5 Huobi Futures
Huobi was formed back in 2013, and it’s currently one of the leading cryptocurrency exchanges in the world today. That’s all thanks to their impeccable security systems, unique features, and interactive interface. Withdrawals and deposits to this platform are relatively easy to perform once you have your account up and running.
With their future contracts, traders can purchase the contracts and speculate the price movement of a specific cryptocurrency. The site supports up to 125X leverage on the bitcoin futures contracts. You can either enter a long or short order on the Bitcoin price and adjust the leverage depending on the risk you are willing to take.
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#6 OKEx Futures
OKEx offers a wide range of future products that you can utilize to build your crypto-capital. What’s more, OKEx offers up to 100X leverage on their cryptocurrency future contracts in 2021. Additionally, you can use their weekly, quarterly, or bi quarterly future contracts. OKEx is an excellent site formed in 2017, and it’s been on the rise since then. The company has one of the best user interfaces that’s easy to understand and trade on. And thanks to their future contracts, OKEx is making a lot of noise in the crypto-world.
The site also offers low fees, and as long as you hold USDT, OKEx makes it easy to change your cryptos. Without a doubt, OKEx’s future contract trading has always been on top of the game in this industry. More importantly, OKEx gives every trader, no matter their geological location, a chance to enter the future contract trade.
Unfortunately, the biggest challenge that you will likely encounter on OKEx is the extreme variation in the leverages. That’s because the leverage varies depending on the price fluctuations in the market. Also in 2020 there were some withdrawal problems because one of the founders was arrested. Other than that. OKEx is worth checking out as one of the top future contracts crypto-exchanges in 2021.
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Another top dog in the cryptocurrency industry is BitMEX. And that’s not all! BitMEX is a derivative of Bitcoin Mercantile Exchange, which is typically a platform that offers leverage contracts. The company has been in existence since 2014, and the company has grown over the years. BitMEX is among the first cryptocurrency exchanges in the business.
Bank experts designed the platform to cater to cryptocurrency traders. BitMEX deals specifically with trades in derivative form. However, all deposits have to be in the form of Bitcoins. BitMEX doesn’t offer a tremendous variation in spreads and commissions. Instead, the site provides a fee scheduled in the future trading contract. Additionally, the site provides a leverage of up to 100X.
BitMEX’s site is created around the leverage feature, which is a vital part of the platform. Bitcoin is the most favored crypto with leverage of 1:100. But Bitcoin Cash also matches the leverage of bitcoin. All in all, you can set your leverage depending on the amount of risk of your trade. On this site, the lowest leverage is for the Tezos crypto. Tezos has a leverage of 2X. Unfortunately, BitMEX doesn’t have a mobile application.
10% discount on all fees at BitMEX
#8 Kraken Cryptocurrency Exchange
If you’ve never heard of Kraken, then you still have a lot to learn about cryptocurrency trading. Kraken happens to be one of the top cryptocurrency exchanges in the world. And ever since the launch of futures on Kraken, this contract’s interest has surged in the crypto world. More importantly, the trading volume of Kraken futures has hit a record high of $350 million within 24 hours.
Through future contracts on Kraken, you can get up to 50X leverage on your speculation. However, for newbies, this is not the best way to start your cryptocurrency trading life. Thankfully, there are enough learning courses that you can use to get up to speed. What’s more, 30% of the fees are shared back to the traders on Kraken. This platform is 100% legit, and it’s ideal for both beginners and advanced traders.
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Bitfinex is an excellent website with good features. On Bitfinex, you can trade on future contracts with ease. The Bitfinex derivative section is pretty straightforward. The platform offers perpetual contracts that don’t have an expiry date; hence as a trader, you can hold on to your trade as long as your capital can sustain the position.
To open a position, the trader will have to select the ideal pair. Then enter the amount and the leverage you are willing to risk for your speculation. More importantly, you will have to decide whether it’s a derivative sell or buy then submit your order. Once that’s done, all you have to do is wait for the price to go your way.
You also have the chance to open leverage of up to 100X. That typically means you can profit more from your prediction. The best part about Bitfinex is that you can quickly change your fiat currency into BTC without the need to create an account on the platform. With this site, the only thing that you will have to verify is when making a fiat deposit or withdrawal.
Future contracts are easy to understand the concept, but it takes a bit of time to attempt a trade. Also, the fact that future contracts carry a high risk makes it hard for newbies to trade using these contracts. When the trade goes in the opposite direction, you face a high chance of liquidation depending on the amount of capital you have in your account. Meaning, you might just lose all your funds if you are not careful. That’s why you should stay away from Bitcoin futures as a beginner.
That said, future contracts are best left for advanced traders who’ve done their research on the market.