A crypto futures exchange specializes in offering a marketplace where traders can buy and sell cryptocurrency futures contracts. These contracts are agreements to buy or sell a specific amount of cryptocurrency at a predetermined price on a future date.
These contracts allow traders to speculate on the future price of cryptocurrencies without owning the actual asset.
For example, traders can use futures contracts to bet against the market– if they believe the price of a cryptocurrency will fall, they can sell futures contracts and buy them back at a lower price.
Investors may also use futures contracts to hedge against potential price declines in their crypto holdings– by locking in a selling price; they can mitigate losses if the market turns unfavorable.
It’s common for crypto future exchanges to provide leverage, allowing traders to control a larger position with less capital. This can amplify gains but also increase the risk of significant losses.
To trade with leverage, traders must maintain a margin, a percentage of the total trade value, as collateral. If the market moves against their position, they may need to add more funds to avoid liquidation.
Words of Caution & Disclaimer
Cryptocurrencies are notoriously volatile, which can already lead to significant losses. The combination of leverage and the added layer of risk presented by futures contracts is like jet fuel– an excellent propellant if you know what you’re doing with it or disastrous if you don’t.
As such, futures trading requires a high understanding of margin requirements, leverage, and risk management.
The following article explores the offerings of a few top crypto futures exchanges, which vary in size, jurisdiction, and unique features. The following list is in no particular order and is not a comprehensive or definitive list of every offering on the market.
Binance: Up to 125x Leverage
Binance is the largest futures exchange on this list in terms of daily trading volume, with over $40 billion in daily trading volume.
Binance was launched in June 2017 and quickly became one of the largest cryptocurrency exchanges in the world.
The Binance Futures home page
Binance’s services are restricted in certain locations, including the United States, Singapore, and Ontario (Canada). Other countries with restricted usage or limited features due to regulatory reasons include China, Malaysia, Japan, the UK, and Thailand.
Futures and derivatives products are also unavailable in Germany, Italy, and the Netherlands. Binance.US, a dedicated platform for US clients, was launched in September 2019.
Binance has relatively higher fees than other futures exchanges, with a 0.02% maker and 0.04% taker.
Binance offers margin trading with up to 10X leverage through Binance Margin. Users can also leverage their trades with derivatives such as Binance Futures, settled in USDT, BUSD, or other cryptocurrencies, and Binance Options.
For more information, check out our Binance review.
PrimeXBT: Up to 1000x Leverage for CFDs & 200x for Crypto Futures
PrimeXBT is a centralized cryptocurrency exchange (CEX) launched in 2018. It offers a user-friendly environment and 24/7 multilingual customer support. It uses cold storage for security.
It has roughly $520,000,000 daily trading volume.
PrimeXBT’s home page (Source: PrimeXBT)
Registered in Seychelles, PrimeXBT serves clients in over 150 countries. However, it restricts services in regions like the U.S., Canada, Japan, Algeria, Ecuador, Iran, Syria, North Korea, and Sudan.
It provides access to over 100 assets across various markets, including Crypto, Forex, Commodities, and Indices. It supports major cryptocurrencies like BTC, ETH, and LTC, meme coins like DOGE and SHIB, and popular coins including TON and SOL.
The platform supports derivative trading instruments such as Crypto Futures and CFDs and offers Copy Trading to mimic the trades of successful Strategy Providers automatically.
It offers up to 1000X leverage for CFDs and up to 200X leverage for Crypto Futures and Crypto CFDs.
Fees: PrimeXBT charges a maker fee of 0.01% and a taker fee of 0.02% for Crypto Futures, and a 0.05% trading fee for Crypto CFDs. There are 0% commissions on CFD trading pairs for global Forex, Commodities, and Indices.
For more information, check out PrimeXBT; new users get a 20% deposit bonus in various tiers.
Bybit: Up to 125x Leverage
Bybit is a centralized cryptocurrency exchange (CEX) launched in March 2018.
The ByBit Futures home page.
Serving over 10 million users, Bybit provides access to over 100 assets and various contracts, including Spot, Futures, Options, launchpad projects, earn products, and an NFT Marketplace.
Notable partnerships include Oracle Red Bull Racing, esports teams, and football clubs like Borussia Dortmund.
The platform supports over 100 cryptocurrencies and 300 spot trading pairs, such as BTC, ETH, SOL, and DOGE. Bybit employs a tiered fee structure with spot trading fees at 0.10% for non-VIP users and lower rates for Pro 3 users.
Perpetual and futures trading fees are 0.06% for takers and 0.01% for makers.
Bybit offers up to 125X leverage on crypto derivatives, including BTC/USD and ETH/USD perpetual contracts.
For more information, check out our Bybit review.
OKX: Up to 125x Leverage
OKX operates globally with offices in Hong Kong, Singapore, the UAE, Silicon Valley, and the Bahamas. Launched in 2017, OKX offers a range of services through its entities in Seychelles and the Bahamas. In the U.S., it focuses on Web3 services but doesn’t provide exchange services.
The OKX Futures exchange home page
In 2022, OKEx rebranded as OKX, updating its branding and strategic direction. The platform supports users in over 200 countries, though it excludes U.S. residents.
OKX lists over 350 cryptocurrencies and more than 500 trading pairs, including BTC, ETH, OKB, AAVE, SOL, MATIC, XRP, DOGE, SHIB, and DOT. Its fee structure starts at 0.10% and decreases with higher trading volumes. Regular users’ fees depend on the amount of OKB they hold, while advanced users’ fees depend on their 30-day trading volumes.
The platform offers margin trading with up to 10X leverage. OKX provides futures trading and perpetual swaps with up to 125X leverage for derivatives. Users can also trade options, including BTC and ETH.
For a detailed look, check out our OKX review.
MEXC: Up to 200x Leverage
MEXC, founded in 2018, serves over 10 million users in more than 170 countries.
The MEXC home page.
The platform offers localized language support, aiding investors globally. MEXC’s trading engine, developed by banking industry experts, completes 1.4 million transactions per second, ensuring efficiency. User security is prioritized with servers hosted independently across multiple countries.
MEXC handles about $4 billion daily trading volume, with 0% maker fees and 0.01% taker fees.
Final Thoughts: Picking the Right Crypto Futures Exchange
Crypto futures trading is perhaps the highest-stakes version of trading, and the risks, especially if you are unfamiliar with or have no experience with it, cannot be understated.
While it offers opportunities to profit from market volatility, the use of leverage means you can lose more than your initial investment.
Top crypto futures exchanges like Binance, Bybit, PrimeXBT, OKX, and MEXC provide a range of tools and options to help traders navigate this fast-paced trading environment. They each offer high leverage, low fees, and advanced trading features.
Ultimately, it comes down to user preference and convenience– which UI do you feel most comfortable with? What features stand out the most to you? Which exchange do you trust the most?
Stay informed, trade wisely, and always be prepared for the risks that come the pursuit of the rewards.
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