TL;DR:
Overall, if you’re looking for an easy to use, and safe exchange Deribit is a good choice. We like the no KYC, ability to trade options, and proven security. Go to Deribit
Deribit is a derivatives exchange launched in 2016 and located in the Netherlands; offering a variety of products on BTC and ETH. Deribit offers options, futures, and perpetual swap contracts. We like Deribit because is super easy to use, with a nice clean interface and backed by an amazing team.
Whats On Offer?
Deribit offers:
- Options
- Perpetual Swap Contracts
- Futures
Deribit offers these on both BTC and ETH.
Features:
- Advanced order trading technology that boasts less than 1ms lag on orders
- Fully integrated API for trading bots
Note!
One thing that might entice traders to use Deribt instead of other platforms is the fact that they offer 10x leverage on options. You trade ‘calls’ and ‘puts’ on BTC and ETH with 10x leverage!
Options
We won’t go into detail about trading options here because that’s way beyond the scope of this post. The options dashboard is super clean and easy to see your open positions the delta value of a call or put plus gamma, theta, vega values.
The margin requirements for options are super low at only 3% on positions.
Pros:
Let’s talk about why you might want to consider using Deribit
1. Low Fees: this seems obvious, the lower the fees, the more you save on your trades.
2. Fast Trading Engine:
They claim to have the fastest exchange in the industry with as little as 1ms of latency. There may be some truth to this as other competitors like Bitmex may sometimes become overloaded and trades are unable to be executed. Nevertheless, the exchange is fast and works well.
3. Good Security: They claim that 99% of the BTC is stored offline in a cold wallet; but we can’t confirm this as they haven’t provided an address for this cold wallet. The exchange has showed over the years to be reliable and remains hack free.
Cons:
1. BTC Only Deposits: Some may think of this as a pro, or a neutral point. Nevertheless, if you want to use Deribit you have to deposit BTC
2. Options Have Minimum Order Requirments: 0.1 BTC or 1 ETH on options contracts.
The Deribit Team
The team is a rock solid group of people who really know what they’re doing. They’ve never been hacked since their inception largely in part because of their strong team and emphasis on security.
The team is run out of the Netherleands by CEO John J. and CTO Sebastian S.
Conclusion
Overall, if you’re looking for a safe and easy to use exchange Deribit is an excellent option. With the quick trading engine and low fees, you’re sure to be happy. Moreover, if you want to trade options with leverage, Deribit has you covered; something you’ll be hard pressed to find elsewhere. Lastly, Deribit is backed by a great team with a proven security track record so you can rest assured the exchange has it’s customers and saftey of funds in the highest esteem.