Futures trading is one of the smart ways that you can make a bulk profit as a crypto trader.

With a lot of futures exchanges in the market – which should you go for and how sure are you that they are legit?

In this post, I will give you a list of the “Top 9 Crypto Derivative Exchanges” that are best guaranteed for your futures trading experience.

After a general review of about 33 crypto exchanges, I can confidently say that these are the very best.

Without further ado, let’s dive into this post!

Post Summary

Here’s the list of subheadings to be covered in this post.

1. Top 10 Futures Trading Platforms for Cryptos
2. Which is the Best?
3. What is Futures Trading?
4. A Must-Know Tips for Futures Traders – What You Must Know Before Signing Up
5. Conclusion

If you want to locate the position of each subheading instantly, you should click on any of them to take you to a go.

That said, let’s take a deeper dive. I hope you stick around till the end.

Top 9 Futures Trading Platforms for Cryptos

When it comes to exchanges offering futures services in the crypto industry, you will tend to discover a flood of them.

Below, you will find a list of the top 10 crypto exchanges with an established reputation in the crypto space.

Notwithstanding, you must know that trading Futures comes with high risk – this post does not encourage you to start trading immediately; if you are still a beginner.

These exchanges are not in sequential order. Therefore, the no. 1 on the list does not mean it is the overall best.

1. Binance

Binance is a world-leading cryptocurrency exchange founded in July 2017 by Changpeng Zhao.

This exchange offers a glut of services ranging from spots, margin, OTC, P2P, derivatives, and many more.

Binance is popular for its large volume of trades, low trading fees, seamless menu-driven interface, and solid reputation.

Initially (at the time of its inception), the exchange did not offer futures trading services.

However, it included it 2 years later, in September 2019.

Binance made the use of this service very easy for newbies by providing them with a video guide on how to best use the platform.

2. BitMEX

BitMEX was founded in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed under the registered company HDR Global Trading Limited.

It is a peer-to-peer cryptocurrency exchange that allows traders to buy and sell crypto derivatives for bitcoins.

One of the unique features that BitMEX prides itself on is its solid security record; there has not been any record of hacking since its inception.

Moreover, the exchange now has an excellent customer support service that is active 24 hours a day to respond to users’ queries.

BitMEX focuses on crypto derivative and margin trading; I believe this exchange is worth your trial.

3. Bybit

Bybit, founded in Singapore by Ben Zhuo in 2014, is one of the famous go-to platforms professional traders use.

The exchange is a renowned crypto derivatives platform and a mega rival of its counterpart, BitMEX.

Bybit built its exchange with the technical capability to handle a large volume of transactions without affecting the status quo of the exchange.

Its matching engine can handle up to 100,000 tps making the transaction process easier and simple for its users.

The exchange operates globally, and the main service it offers is the perpetual futures contract.

4. Huobi

Huobi was founded in 2013 by Leon Li and is one of the largest cryptocurrency exchanges in the crypto market.

The exchange offers a lot of trading services including; OTC, P2P, Spots trading, c2c lending, Derivatives etc.

Huobi has an outstanding user interface that professional traders can easily navigate intuitively.

The exchange has a pretty fast and reliable trading engine that executes orders without delay.

Huobi supports a plethora of cryptocurrencies; however, only BTC is available for futures trading.

5. Bitget

Launched in 2018, Bitget is a cryptocurrency exchange based in Singapore.

The exchange offers spot trading, futures trading, and copy trading services to its users.

At the time of this post, Bitget is one of the leading derivative exchanges on Coinmarketcap.

6. Gate.io

Gate.io was founded by Lin Han in 2019.

The platform is an easy-to-use and highly secured platform that offers both spot trading and crypto derivatives services.

Gate.io has experienced an overwhelming amount of growth and liquidity since its inception.

An interesting aspect of the exchange is its zero fees and up to $500 contract bonuses offered to new members.

More so, with its sophisticated technology, its cross-engine can handle a high trade volume of about 300,000 tps.

7. OKX

OKX is one of the largest exchanges in the market.

It was launched in 2014 by Star Xu and is currently located in Malta.

The exchange offers varieties of services ranging from spots, brokerage services, a pretty advanced derivative market etc.

OKX allows you to trade Futures for an expansive range of crypto-derivatives over USD and USDT.

Find other futures of OKEx below.

8. Kucoin

Kucoin provides traders with an advanced yet user-friendly platform to trade futures.

The exchange was founded in 2017 and is headquartered in Singapore.

It is a popular platform for traders due to its wide selection of coins and features.

Kucoin offers futures trading for a number of cryptocurrencies, including Bitcoin, Ethereum, SUI and over 150 tokens.

9. MEXC

MEXC Global is a centralized exchange founded in 2018

It is one of the top-notch exchanges to trade over 20 crypto derivatives for USDT.

Although seemingly new, this exchange has become one of the most-ranked exchanges by trade volume.

Interestingly, MEXC supports PEPE, AIDOGE, WOJACK and some other popular meme coins for futures trading.

This obviously puts it in the hot spot if you are a meme coin fan.

Having explored all these exchanges, let’s take a look at the overall best!

Which is the Best?

The exchanges I have given you above are all first-rate, well-established, have great liquidity, are very secure, and are optimal.

However, the points below might help enhance your choice in choosing from the list:

• Age:- Talking about age, although most of the exchanges on my list have been in existence for a long time. Bybit is the oldest and yet solid platform that has stood the test of time without any security breach.
• Country: All the exchanges listed in this post are global. However, due to local laws, a few countries especially North Korea, Afghanistan, etc are restricted in their terms of use.

If you are in the United States, you should consider using MEXC as it is the only exchange available for you.

• Leverage: Binance, Kucoin and Huobi give you a leverage of up to 125x.

This undoubtedly is the most advantageous benefit of entering positions that are larger than your capital when compared to others.

• Test net: If you are still a beginner then you should try using other exchanges on this list other than OKx and Huobi as they are yet to launch a trading test net for this service.

• Trading forms: FTX offers you with variety of underlying assets that are yet to be implemented into other exchanges.

In summary, determining the best among these exchanges depends on your choice after a close examination of the points above.

What is Futures?

Futures trading has been available for cryptocurrencies since 2016.

In case you are still new to this term, the video you see below will give you a quick brief on what Futures trading is.

Futures contracts are financial instruments derived from an underlying asset, e.g., bitcoin, that traders can buy or sell at a predetermined time.

These contracts are always standardized; it specifies the quantity, quality and settlement date of the underlying asset.

The main purpose of futures trading is to expose traders to the market by hedging against the volatility of the crypto market.

With a Futures contract, traders can speculate on the price of cryptocurrencies without owning them.

Long vs. short position is one of the dominant terms used in the futures market.

By entering a long position, you agree to buy an asset at a set price and date.

And when you enter a short position, you agree to sell an asset at a set price and on a specified date.

Whether you lose or gain, these contracts cannot be traded until the set date is reached.

Read more: Futures Trading: What It is and How It Works

Having looked at the meaning of Futures trading, let’s see the details in the next subheading.

A Must-Know Tips for Futures Traders – What You Must Know Before Signing Up

Due to Bitcoin Volatility – futures trading in the crypto niche involves high risk, and there is a high potential that you may lose your money.

Below, I will be giving you some of the tips that you have to put in mind before investing in the futures market.

• Do not venture into futures trading as a get-rich-quick gamble. Profits are sometimes unrealistic, and you will lose money if you do.
• You have to acquire proper trading skills such as; technical analysis, risk management, entry and exit strategies, position-sizing, and order types.
• Study the platform you are about to trade with, and make use of its FAQ section, video tutorials, and reference sections.
• Do not over-trade or perform so many trades at the same time especially when you are not sure.
• Use the “Isolated” when entering different trades at a time.
• Take a reasonable position size: Leverage is only a marketing ploy. Do not use too much leverage, because it is too risky.
• Sign up for a test net to figure out how the platform works. Do not perform real trade when you are not confident of your trading abilities.

Disclaimer: 90% of traders lose their money on leveraged trading. What you see above should not be considered investment advice. DYOR and practice adequate risk management.

Conclusion

This is where I will call it a wrap for this post. I hope that you have enjoyed it.

Now, it is time to get a reply from you.

Which of these platforms do you think is the best for you?

Are there other platforms that you think should be added to the list or are there ones you feel should be removed?

If you are still a newbie, do you think this trading is worth trying out? For regular traders – What are your experiences so far in the futures market?

You should put your comments in the comment box below.

Remember to share this post with your friends on social media.

Cheers!

P.S
If you want to learn how to trade cryptocurrencies profitably, we developed a perfect course to help you master Cryptocurrency Trading.
Go to www.ctmastery.com to enrol.

Related Articles;

• Bitcoin Exchanges in Nigeria – The Complete List (Over 80)
• 10 Best Exchanges to Buy Bitcoin in Cameroon (2020)
• Best Exchanges to Buy Bitcoin in Nigeria (2020)
• 10 Best Exchanges to Buy Bitcoin in Uganda (2020)