BitMEX Review 2024: Trading Experience and All Features

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derivatives exchange review

BitMEX: High-Leverage Crypto Derivatives Exchange

BitMEX is a popular derivatives exchange known for offering up to 100x leverage on certain products, enabling users to amplify potential returns on their investments. The platform supports a range of derivatives products and provides sophisticated trading tools, allowing users to execute custom strategies while benefiting from deep liquidity and low trading fees. The trading interface is fully customizable to suit the preferences of traders.

Launched in 2014, BitMEX has become a leading derivatives exchange with high trading volume. In 2016, it introduced perpetual swap contracts with up to 100x leverage. The platform also has a native token, BMEX, which serves as a utility token, offering discounts on trading fees.

Pros and Cons

ProsCons
Wide range of derivatives productsNot available in U.S.
Up to 100x leverage on some products 
Low trading fees 
BMEX token can give discounts on fees 
  
  

Trading Fees

BitMEX utilizes taker/maker fee structure for both spot and derivatives trading. For spot trading, makers and takers pay 0.10% fees. On the other hand, fees for derivatives trading depends on monthly trading volume and amount of BMEX staked. The higher the amount of staked BMEX, higher the discounts on fees. Here’s the fee structure for derivatives trading:

Fee Tier30D Rolling Average Daily Volume (USD)Taker Fee (XBT)Maker Fee (XBT)Taker Fee (USDT)Maker Fee (USDT)
B00.0750 %0.0200 %0.0750 %-0.0150 %
I1,000,0000.0500 %0.0100 %0.0500 %-0.0150 %
T5,000,0000.0400 %0.0000 %0.0400 %-0.0150 %
M10,000,0000.0350 %0.0000 %0.0350 %-0.0150 %
E25,000,0000.0300 %0.0000 %0.0300 %-0.0150 %
X50,000,0000.0250 %0.0000 %0.0250 %-0.0150 %
D100,000,0000.0240 %-0.0030 %0.0240 %-0.0150 %
W250,000,0000.0230 %-0.0050 %0.0230 %-0.0150 %
K500,000,0000.0220 %-0.0080 %0.0220 %-0.0150 %
S1,000,000,0000.0175 %-0.0100 %0.0200 %-0.0150 %

Trading Experience

BitMEX provides a well-organized trading interface which includes price chart, depth chart, order book, recent trades section, news feed and order form. Users can move these sections and adjust them based on their preferences. They can also utilize several charting tools and indicators for technical analysis. Both individual and institutional traders can easily use the trading platform for their trading strategies.

You can access a wide variety of derivatives products and trade certain products with up to 100x leverage. You can also trade 14 spot trading pairs and take benefit of high liquidity.

Other Features

While BitMEX enables a smooth trading experience through better liquidity and latency, it also provides other unique features such as BMEX token which serves as its native token. It was launched in November 2022 to provide discounts on trading fees, staking rewards and certain VIP privileges. At the maximum level, users can get 15% taker fee discount or 0.004% maker fee reduction.

Moreover, BitMEX provides Guilds, a Social Trading Platform, that allows collaboration and community engagement between the BitMEX traders. Users can also create their own groups or Guilds, that can help enable collaboration between traders.

Customer Service and Satisfaction

BitMEX provides customer support through several channels including email, support request and FAQ section. Users can submit request if they have specific problems or issues related to the platform. They can use FAQ section to learn about trading, and other topics. The extensive educational resources can be very helpful if you have any queries.

BitMEX got 12 reviews on G2, which gives it an overall rating of 3.1 out of 5. Many customers admire features such as 100x leverage, user-friendly interface, low fees and overall smooth trading experience. Some customers also complain about trading system freezing, and complex interface. Customers have varying experiences with some having a smooth trading experience while other facing problems in the process.

Company Overview

BitMEX is one of the oldest derivatives exchanges developed in 2014 by Arthur Hayes, Ben Delo, and Samuel Reed. The platform gained significant popularity due to its advanced trading tools and features. Initially, platform focused on BTC derivatives contracts, but later added other products such as perpetual swap contracts. In 2022, it launched spot trading feature and BMEX token which provided several advantages to old users and also grew user base. While the exchange remains unregulated in several regions such as U.S., it is generally considered to be a secure platform, with a proof-of-reserve system. The company is currently based in Seychelles.

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Deribit Review 2024: Trading Experience and All Features

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deribit review

Deribit: Advanced Derivatives Exchange

Deribit is a leading derivatives exchange that allows users to trade a wide range of derivatives products, including futures, perpetuals, and options contracts, with deep liquidity. Advanced tools such as the Option Wizard, Position Builder, and Deribit Metrics enable traders to manage their crypto portfolios effectively. The platform also offers a testnet feature, allowing beginners to simulate trading scenarios to gain experience.

Deribit was one of the first platforms to offer Bitcoin options trading. Since its launch in 2016, it has grown to hold the largest share of the global Bitcoin Options market. The platform is suitable for both individual and institutional investors. Deribit also maintains a strong focus on security, offering robust security measures and proof-of-reserves.

Pros and Cons

ProsCons
Wide range of derivatives products such as futures, perpetuals and options contractsNot available in U.S. and Canada
Powerful trading tools 
Zero-fee spot trading 
Deep liquidity for facilitating trades 
  
  

Trading Fees

Deribit officially launched its spot trading feature on April 24, 2023, introducing three trading pairs: BTC/USDC, ETH/USDC, and ETH/BTC. For these spot trading pairs, Deribit does not charge any trading fees. However, for derivatives trading, the platform utilizes a maker/taker fee structure, where takers pay higher fees compared to makers.

ContractsMaker FeeTaker Fee
BTC Weekly Futures-0.01%0.05%
ETH Weekly Futures-0.01%0.05%
BTC Futures & Perpetual0.00%0.05%
ETH Futures & Perpetual0.00%0.05%
USDC Perpetuals0.00%0.05%
BTC Options0.03% of the underlying or 0.0003 BTC per options contract0.03% of the underlying or 0.0003 BTC per options contract
ETH Options0.03% of the underlying or 0.0003 ETH per options contract0.03% of the underlying or 0.0003 ETH per options contract
USDC Linear Options0.0001 * index price (Capped at 12.5% premium)0.0005 * index price (Capped at 20% premium)

Trading Experience

Deribit offers advanced tools like the Option Wizard, Position Builder, and Testnet to help traders in managing their crypto portfolios. The platform provides high-speed trading with deep liquidity, and the interface is customizable, allowing users to rearrange sections like charts, order books, order forms, and trade history to fit their preferences. Charts come with multiple customization options and technical indicators.

Deribit supports a wide range of order types, including limit, market, stop limit, and trailing stop orders, along with stop loss and take profit options for more sophisticated trading strategies. The Option Wizard helps users identify optimal options trading strategies based on price predictions, while the Position Builder allows for the construction and analysis of strategies before execution. The Testnet feature offers a simulated trading environment, perfect for testing strategies without financial risk.

Other Features

Apart from derivatives trading, Deribit also offers spot trading, supporting 11 trading pairs and 8 coins. The spot trading feature was launched on April 24, 2023, initially with three pairs. Traders pay no fees for spot trading. They can access the same trading interface, with identical order types and stop loss and take profit options, allowing them to take advantage of the spot market. Here are the trading pairs:

  • XRP/USDC
  • USDC/USDT
  • STETH/USDC
  • STETH/ETH
  • SOL/USDC
  • MATIC/USDC
  • ETH/USDT
  • ETH/USDC
  • ETH/BTC
  • BTC/USDT
  • BTC/USDC

Customer Service and Satisfaction

Deribit offers customer support through multiple channels, including live chat, email, and Telegram, and provides educational resources focused on derivatives trading and platform tools. Deribit has a mix of reviews on TrustPilot, which makes overall rating of 3.3 out of 5 from 14 reviews. Many users praise the platform for its high liquidity, smooth trading experience, and fast trade execution. However, some customers express dissatisfaction with issues such as lost funds and the quality of customer support.

Company Overview

Launched in 2016, Deribit initially focused on providing advanced trading tools and services for cryptocurrency derivatives. In 2023, the platform expanded its services to include zero-fee spot trading. Deribit is recognized as one of the largest derivatives exchanges by trading volume. The platform has implemented robust security measures, including a proof-of-reserves system, to ensure the safety of users’ funds. Additionally, Deribit offers customer support through multiple channels, allowing users to address queries or issues effectively.

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Maximizing Returns with Binance Dual Investment: A Comprehensive Guide

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dual investment strategy

Understanding Dual Investment Strategies

Cryptocurrency prices can fluctuate based on factors such as current demand, supply, trading activities, and macroeconomic events. These prices often follow trends within specific timeframes. Maximizing returns with Binance dual investment for instance, weekly price movements are influenced by short-term trading activities, while monthly price movements are affected by long-term events such as regulatory changes, the introduction of new cryptocurrencies, and shifts in investor interest.

In dual investment strategies, you first select a specific timeframe and execute a Buy Low strategy by setting a target low price for your investment. If you successfully acquire the cryptocurrency at this target price, you can then use the Sell High strategy to sell the crypto once the price increases to a predetermined target. Analysing price trends around a mean point can help in setting these targets.

To automate this process, Binance offers the Dual Investment tool, which includes two separate products: Buy Low and Sell High. The Buy Low product allows you to acquire cryptocurrency at a specified low price, while the Sell High product lets you sell crypto at a targeted high price.

Selecting the Right Coins

While BTC is a prominent cryptocurrency for both short-term and long-term investments, it may not always yield the highest returns. Some cryptocurrencies perform better within specific timeframes compared to others. For instance, a new cryptocurrency with a rapidly growing value might be a good investment over a monthly timeframe. In the early stages, you might use the Buy Low strategy to acquire a certain amount of this crypto and sell it at a higher price after a few months, once it has gained substantial value. However, its value can also decrease over time, making it less suitable for ongoing dual investment strategies.

On the other hand, BTC can be a good asset for shorter timeframes, such as weekly investments. It may experience price fluctuations within a week, with potential peaks and troughs. For example, BTC might have weekly price fluctuations between $58,000 and $62,000, with a mean price in that range. Its stability and liquidity make it a viable option for dual investment strategies in shorter timeframes. For example, if a user invests 0.5 BTC, they could use the Buy Low strategy when the price is $58,000 and the Sell High strategy when the price is $62,000, potentially making a profit of $2,000 based on the price difference and the amount invested.

Selecting the Right Parameters

While you cannot edit the target price once you’ve selected a product, you can choose from various positions with specified APR, target price, and settlement date. Once subscribed to a specific position, you cannot alter these parameters. Besides profits from price volatility, you also earn additional rewards.

You can select the amount of crypto you want to buy or sell. Additionally, the auto-compound feature can help by automatically re-subscribing to the same product if the target price is not reached. Auto-compound comes with two plans: Basic and Advanced. The Basic Plan re-subscribes to the same product with the next available settlement date if the target price is not achieved. It also re-adjusts the target price based on the changing market conditions. For instance, if BTC is currently priced at $58,000 and your initial Buy Low product has a target price of $56,000, the Basic Auto-Compound will re-subscribe to the product if the target is not reached. If BTC’s price drops to $56,000, which was the original target, the target price will be automatically re-adjusted to remain lower than the market price.

The APR listed next to each product includes not only the investment return but also includes additional rewards offered by Binance.

Boost Returns with Advanced Auto-Compound

Advanced Auto-Compound works the same as Basic Plan if target is not reached and creates an opposite investment position if target is reached. This allows more automation in dual investment strategy. For example, if Sell High position sells your crypto at target price, then Advanced Auto-Compound would create a Buy Low position with next available settlement date. Similarly, it can create a Sell High position right after Buy Low position acquires crypto for you, allowing to generate profit without your intervention.

However, it’s important to monitor your current investments and stay informed about crypto market trends, as Advanced Auto-Compound can create new positions even in declining markets. You can disable Auto-Compound up to 30 minutes before the settlement date if needed.

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5 Practical Applications of Stablecoins in Modern Finance

Introduction to Dual Investment: Earning Money with Binance

DeFi on Binance: Comprehensive Review to Earning with Decentralized Finance Products

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earn with binance

Overview of Binance Investment Products

While cryptocurrency trading can yield significant profits through market volatility, Binance offers several financial products that enable users to generate passive income with minimal effort. These include Auto-Investment, Dual Investment, Simple Earn, and ETH Staking. Some of these specialized tools use algorithms to automate the process of crypto investments. Although each product employs different strategies, they all share the common feature of offering subscription-based investments with specified APR (Annual Percentage Rate) or interest rates.

Each of these tools offers varying Annual Percentage Rates (APR) for different cryptocurrencies. The rates depend on factors such as the nature of each asset, market volatility, and demand. Dual-investment products, which exploit market volatility to generate profits, typically offer higher APR or APY rates compared to other products.

Auto-Investment

Auto-investment is a tool that uses a Dollar-Cost Averaging (DCA) strategy to fully automate periodic investments in cryptocurrencies. Users can set up auto-investment plans for specific cryptocurrencies to invest at regular intervals, which helps mitigate the effects of market volatility. The effectiveness of this strategy depends on the correct adjustment of parameters and timing. While auto-investment allows fully automated investments, it may not always yield profits if investments are poorly timed or if the market moves unfavourably.

Users can create up to 100 auto-investment plans for different cryptocurrencies. They can choose to create individual plans for single cryptocurrencies or portfolio plans for multiple cryptocurrencies.

Dual Investment

Dual-Investment is an interesting tool that leverages the basic investment strategy of “Buy Low and Sell High.” This tool offers two types of products: Buy Low and Sell High.

Buy Low Product: This product automatically purchases crypto assets at a specified target price or lower on the settlement date, helping to hedge against market volatility.

Sell High Product: This product automatically sells crypto assets at a specified target price or higher on the settlement date, aiming to generate profits.

Users can select the Basic Auto-Compound feature to automate the re-subscription of products if the target price is not reached. Alternatively, they can use Dynamic Auto-Compound, which works similarly to Basic Auto-Compound but with the added ability to automatically re-subscribe to the opposite investment position. For example, if you subscribe to a Buy Low product and the target is reached, Dynamic Auto-Compound will subscribe to a Sell High product to sell the newly acquired crypto at the target high price.

Simple Earn

Binance has integrated its old products such as locked staking, locked savings, and flexible savings into the Simple Earn product to simplify the subscription experience. Users can subscribe to products with either flexible or locked terms to earn interest. Simple Earn differs from traditional staking in that it combines multiple strategies such as on-chain staking, lending, and other operations within Binance Business Units. This combination allows Simple Earn to provide higher APR rates than traditional staking. The APR rate for non-stable assets is dynamic and depends on asset market volatility and Binance’s business operations.

By subscribing to products with flexible terms, users can redeem their assets and rewards at any time. In contrast, fixed products require users to redeem assets and rewards only after the subscription period, which typically ranges from 15 to 120 days.

ETH Staking

Binance’s ETH Staking is a secure and user-friendly service that allows users to stake their ETH to earn rewards. Unlike traditional ETH staking, Binance’s service issues WBETH tokens, which represent the staked ETH. These WBETH tokens can be utilized for various purposes, including spot trading, liquidity farming, and lending. You can start staking with as little as 0.0001 ETH, and while your assets are locked for blockchain validation, you can still benefit from the utility of WBETH tokens.

The APR you receive is dynamic and depends on several factors, including on-chain activities and consensus rewards. Binance’s ETH Staking provides an efficient way to stake ETH while also allowing you to leverage your staked assets through WBETH.

Concluding Remarks

Binance offers a range of investment products, including Simple Earn, Dual-Investment, Auto-Investment, and ETH Staking, which provide efficient and user-friendly ways to earn passive income from your crypto holdings. Dual-Investment and Auto-Investment offer automated strategies for crypto investments, while Simple Earn and ETH Staking provide mechanisms for staking your coins to earn rewards. These tools are well-suited for both new and experienced investors. However, it’s important to consider the risks associated with the market volatility of crypto assets. Staying informed about current market conditions is essential for making sound investment decisions.

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Top 5 crypto loan services in 2024

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crypto loan providers

How Crypto Loans Work

Blockchain technology has enabled several innovative financial products and Crypto loans, issued by crypto lending platforms, are one example. Similar to traditional banking systems where borrowers provide assets or properties as collateral, users provide cryptocurrency as collateral to lending platforms. In the DeFi market, both collateralized and non-collateralized loans are available, each with different risk levels for lenders.

Lending platforms such as Compound and Aave allow lenders to deposit their assets into liquidity pools, which are then utilized to fund loans to borrowers. In return, lenders can earn interest based on the specific Annual Percentage Rate (APR) set by the platform, which may vary depending on the supply and demand for different cryptocurrencies.

Selecting The Best Loan Provider

Unlike traditional loans, the amount a borrower can receive and the size of collateral they must deposit depends on market volatility, liquidity, interest rate and demand for specific crypto assets. These factors govern the Loan-To-Value (LTV), which is the ratio of loan amount to collateral value. Most lending platforms typically offer LTV ratios of 25% or lower for volatile and riskier assets, meaning borrowers can take out loans worth up to 25% of the collateral they deposit, while taking benefit of lower interest rates.

When selecting a specific lending platform, consider factors such as LTV ratio, liquidity, and market volatility of asset you want to use as collateral. Loans backed by stablecoins are generally better, offering lower interest rates and greater stability of value. In this article, we review the top 5 secure and reliable loan providers.

  1. Aave

Aave is one of the best DeFi loan provider known for flash loans and collateralized loans. This platform operates on Ethereum blockchain as decentralized lending platform, enabling users to lend or borrow cryptocurrencies. Flash loans are an innovative financial service, that allows borrowers to obtain loans without collateral, with the requirement that funds are repaid within single transaction block. These loans are not intended for long-term use but are instead utilized for short-term financial strategies such as arbitrage trading, and debt refinancing.

Interestingly, Aave also supports collateralized loans with both variable and stable interest rates. Users have ability to choose from wide range of cryptocurrencies for collaterals. They also have flexibility to repay loan at any time.

  • Compound Finance

Compound is a prominent lending platform operating on the Ethereum blockchain. Lenders can deposit funds into liquidity pools, which are then used to provide loans to borrowers at specific interest rates. Compound Finance functions as a decentralized autonomous organization (DAO), meaning it is governed by a community of token holders. The COMP token, Compound’s native token, is used for voting on governance proposals and protocol changes.

As a DeFi platform, Compound utilizes smart contracts to automate and secure transactions, offering a trustless financial system for users. Borrowers can take out collateralized loans, with interest rates that are dynamically adjusted in real-time based on the supply and demand for each asset. Lenders, in turn, can earn passive income by providing liquidity to the pools.

  • YouHodler

YouHodler is a centralized lending platform that offers loans in a wide range of cryptocurrencies. The platform is known for its unique features, including a high LTV ratio of up to 97%, approximately 79 collateral options, and advanced loan management tools. With a 97% LTV ratio, users can borrow up to $97 worth of crypto by providing only $100 in collateral.

The platform features a user-friendly loan calculator that allows users to easily adjust loan terms, and it also offers flexible repayment options. The combination of flexible loan terms, high LTV ratios, and competitive interest rates makes YouHodler a strong option for crypto loans. The service is accessible via both desktop and mobile applications.

  • CoinRabbit

CoinRabbit is a centralized lending platform known for its user-friendly interface and flexible loan terms. Notably, the platform supports a wide range of collateral options, currently offering 222 cryptocurrencies. Users can take out collateralized loans and repay them at any time. Loans can be processed and approved within 15 minutes or less, depending on the collateral. Once the loan is repaid, users can typically receive their collateral back within an hour. To ensure security, users’ funds are stored in cold storage.

Additionally, CoinRabbit allows users to open savings accounts and deposit cryptocurrencies to earn interest. The Annual Percentage Rate (APR) varies based on the type of crypto asset, as well as its supply and demand. Users can also deposit stablecoins such as USDT and USDC to earn rewards.

  • Binance

Binance is a leading cryptocurrency exchange popular for its comprehensive financial services. The platform offers a range of features including advanced trading tools, staking options, and robust loan services. Binance provides two types of crypto loans: Flexible Rate Loans and Fixed Rate Loans. Flexible Rate Loans are over-collateralized with dynamic interest rates, while Fixed Rate Loans offer predetermined interest rates. Both loan types support a wide array of cryptocurrencies for collateral and borrowing. Users benefit from zero transaction fees and flexible repayment options.

Moreover, Binance users can utilize the Binance Earn feature to deposit their assets and earn rewards through various strategies such as lending, liquidity mining, staking, and other investment operations.

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Introduction to Dual Investment: Earning Money with Binance

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dual investment

Dual Investment: Buy Low and Sell High

Dual investment is a popular strategy that leverages the market volatility of crypto assets to generate profits. This strategy involves buying an asset at a low price and selling it at a higher price, capitalizing on price fluctuations. While this approach can be executed manually, platforms like Binance and Kucoin offer specialized tools that automate the process, making it more efficient and accessible.

To maximize profits, investors need to have a sound understanding of market trends and future price movements. By purchasing an asset at its lowest point within a given period (such as the weekly low) and selling it when it reaches a higher point (such as the weekly high), investors can achieve substantial returns. Additionally, diversifying investments across multiple crypto assets can provide protection against the volatility of a single asset, reducing overall risk.

How Dual Investment Works

The Dual Investment tool functions similarly to limit and conditional order types, executing trades at a specified future date and price. It allows users to leverage the market volatility of cryptocurrency assets by controlling the timing of trade execution. There are two main types of Dual Investment products: Buy Low and Sell High.

Buy Low: This product enables you to buy a specific cryptocurrency at a target price on the settlement date. If the market price is at or below the target price on the settlement date, the trade will be executed.

Sell High: This product allows you to sell a specific cryptocurrency at a target price on the settlement date. If the market price is at or above the target price on the settlement date, the trade will be executed.

If the Buy Low product successfully acquires cryptocurrency for you at the target low price, you will need to manually set up a Sell High product for the newly acquired cryptocurrency. This Sell High product will sell the cryptocurrency at your target price in the future to potentially earn a profit. Trades are executed only on the settlement date if the target price is reached. Consider using the auto-compound feature to automatically re-subscribe to new dual investment opportunities at each settlement date if target price is not reached.

Starting Investment on Binance

Before subscribing to dual-investment products, it’s crucial to understand the key terminologies. Target price is the specified future price at which you aim to buy or sell your cryptocurrency. Settlement date is the date when the trade is executed and you receive your returns. Deposit currency is the cryptocurrency that you need to deposit to subscribe to product, and target currency is the cryptocurrency you want to receive. And finally, subscription period is the time between subscription date and settlement date.

To make informed decisions, analyze weekly or monthly price movements using charting tools and indicators to determine the optimal settlement date and target price. If you have subscribed to multiple Dual Investment products, monitor their performance closely. The Basic Auto-Compound feature, enabled for each subscription, will automatically re-subscribe you to the plan on each settlement date unless the target price is reached or you choose to turn it off.

Risks and Rewards

The profitability of dual investment strategies largely depends on the target price and market movements. If the market moves in the favourable direction, the trade will be executed, potentially generating significant profits. Success in this strategy depends on accurately predicting favourable market movements and setting optimal settlement dates and target prices.

During the subscription period, interest earnings accumulate and are distributed at settlement. To continuously benefit from investments, consider using the Advanced Auto-Compound feature, which re-subscribes you to a new position based on market conditions. If the target price is reached, the Advanced Auto-Compound feature will open a new position in the opposite direction. For example, if a Buy Low product successfully acquires cryptocurrency at the target price, the system will automatically set up a Sell High position for the same asset.

However, if the market does not move as anticipated, investors may incur losses. Persistent unfavourable market conditions where the target price is not reached could delay profit generation and potentially result in losses. The Auto-Compound feature will continue to re-subscribe to new positions based on the initial strategy, but this may not always lead to profitable outcomes if market conditions are consistently adverse.

Concluding Remarks

Dual-investment products, just like auto-investment and staking products, allow investors to earn passive income with crypto. These products use algorithms for automating the execution of trades at specified date and price, allowing investors to capitalize on crypto market conditions. The general principle of dual-investment is simple: Buy Low and Sell High. Users can buy crypto assets at low price and sell at high to earn profits. The return on investment (ROI) depends on target price, settlement date, nature of crypto asset and its market conditions. That’s why, sound knowledge of crypto market can be helpful in the strategy.

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Top 4 crypto derivatives exchanges in 2024

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derivatives exchanges review

How Derivatives Trading Works

Derivatives trading involves buying or selling of financial contracts which derive their value from performance of underlying assets like Bitcoin (BTC). Unlike spot trading where traders buy or sell the assets, derivatives trading allows traders to speculate on the future price movements of asset without directly owning it.  BTC futures contract is a popular derivative used for trading, allowing traders to speculate on the future price of BTC. It can generate profit or loss depending on market conditions and price movements of BTC.

There are certain terms to consider when trading futures contracts, such as futures price, contract size, underlying asset, and expiration date. When a trader buys a BTC futures contract, he is agreeing to buy or sell the BTC at predetermined price known as futures price upon the contract expiration. Traders have two options: they can either sell the contract before the expiration date to close their position or allow the contract to be automatically settled at expiration.

At the time of buying contract, you do not own the underlying BTC. Instead, you are entering into an agreement to buy Bitcoin at a predetermined futures price at the contract’s expiration. You can close your position by selling the contract before expiration. Your profit or loss depends on the difference between the futures price (the price at which you agreed to buy BTC) and the market price of BTC at the time you close the contract or at expiration.

Selecting the Best Derivatives Exchange

Many crypto exchanges support both spot and derivatives trading though not all derivatives products may be available on every platform. When selecting a crypto exchange specifically for derivatives trading, consider several key factors: platform security, trading tools, risk management tools like stop-loss orders, leverage options, portfolio management features, and supported contracts. Risk management tools such as stop-loss orders, are very helpful when trading contracts. Additionally, analytics tools play a crucial role in making informed trading decisions. This review explores the top derivatives exchanges with robust security features, and comprehensive trading tools.

  1. Deribit

Deribit is a sophisticated derivatives exchange designed to streamline derivatives trading by offering advanced tools. It provides a diverse range of derivatives products including futures, perpetuals, and options contracts, and known to have the largest share in BTC options market. Deribit’s Options Wizard is an innovative tool that helps users find the best options trading strategy based on their price prediction. Another valuable tool is position builder which allows users to create and view multiple portfolios, enabling the execution of advanced trading strategies.

In addition to derivatives trading, Deribit supports spot trading for users who want to swap cryptocurrencies. The platform offers deep liquidity for both spot and derivatives assets, enhancing trading efficiency. To build trust and ensure security, Deribit has implemented a proof of reserves system and has earned an ISO security certificate, reflecting its commitment to robust security practices.

  • BitMEX

BitMEX is a professional derivatives exchanges that provides deep liquidity for several contracts. Features such as fee discounts, and VIP services make this platform an attractive option for both spot and derivatives traders. The transaction fees are low compared to most of the derivatives exchanges. Users can get further discounts on fees by using BMEX, the native coin of BitMEX ecosystem.

Although the platform was launched in 2014, it introduced more features which expanded the BitMEX ecosystem. In 2016, it launched BTC perpetual swap contracts, leverage options, advanced order types, and introduced BMEX token in 2021. Interestingly, platform offers 100x leverage on some of its derivatives products.

  • Bybit

Bybit is a versatile cryptocurrency exchange offering a diverse range of spot and derivatives assets. Users can efficiently trade both spot assets and derivatives contracts, benefiting from advanced tools such as a unified trading account and various order types, including limit and conditional orders. The platform provides up to 100x leverage on perpetual contracts, allowing traders to amplify their positions. Bybit’s unified trading account enables users to execute options, perpetuals, and futures strategies seamlessly.

For derivatives trading, Bybit offers two notable trading bots: the futures grid bot and the futures martingale bot, which automate trading processes. Additionally, Bybit provides DeFi services like staking. The platform is known for its industry-leading security measures, ensuring a safe and convenient trading experience.

  • OKX

OKX is an advanced crypto exchange that supports both spot and derivatives trading. It is particularly suited for experienced traders who employ advanced trading strategies. The platform features a well-structured and unified trading interface, enabling both automated and manual trading. OKX offers several advanced order types, including conditional orders, which are valuable for automating the buying or selling of contracts based on predefined criteria.

Additionally, OKX provides trading bots such as futures grid and futures DCA, designed to exploit specific market conditions for potential profit. Overall, OKX delivers a comprehensive trading experience for both spot and derivatives trading.

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How to use decentralized exchanges?

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trading on dexs

How DEXs Work

Unlike centralized exchanges (CEXs), decentralized exchanges (DEXs) are not managed by a central authority. The trades are executed through smart contracts and users retain custody of their own funds. This approach leverages the full potential of blockchain technology, which aims to decentralize financial services and give users complete control over their assets.

Most DEXs use Automated Market Maker (AMM) system to facilitate trades. Uniswap was among the first to popularize the AMM system when it was launched in 2018. By eliminating the need for traditional order book system, AMM provides high liquidity, allowing traders to execute trades directly with liquidity pools rather than waiting for their orders to be matched. Anyone can become liquidity provider by contributing to liquidity pools, and in return, they earn a share of trading fees generated from the trades.

Benefits of AMM (Automated Market Maker)

The order book system generates liquidity by maintaining a continuous flow of buy and sell orders, requiring a sufficient number of active traders who are willing to buy or sell assets at specific prices. When there are not enough active traders, order matching can become slower, leading to greater price swings and slippage. This is especially noticeable in markets for new or less popular cryptocurrencies, where trading activity is often lower. Additionally, liquidity can be reduced during off-peak trading times or during large sell-offs, which can decrease both the price and liquidity of an asset.

In contrast, the Automated Market Maker (AMM) system can sustain high liquidity regardless of the asset’s popularity, trading hours, or market conditions. By using liquidity pools and allowing anyone to provide liquidity, AMMs can facilitate trades even in scenarios where the traditional order book system might struggle due to low trading activity or market volatility.

Additionally, AMM system also creates incentives for liquidity providers (LPs) by offering rewards. Many DEXs such as Pancake Swap, provide additional rewards alongside share of transaction fees, allowing LPs to earn passive income.

Setting Up Wallet

Most decentralized exchanges (DEXs) do not provide an integrated wallet to purchase and store crypto. You need a DeFi wallet to transfer funds to the DEX. There are many wallets with robust security features and DeFi integration, allowing users to store and swap cryptocurrencies. Some wallets do not have the feature to purchase crypto. That’s why, you should select a wallet that integrates with payment processors. Wallets such as Trust wallet allows the purchase of crypto using credit or debit cards.

After you have selected a wallet, created an account, and purchased crypto, now you can start trading. Move to the DEX platform you want to use for spot trading.

Executing Spot Trades

Select a specific blockchain network which is compatible with crypto assets you want to trade. Connect your wallet to the DEX, then navigate to the trading section of the decentralized exchange. Now, select the coin you want to trade and the coin you want to receive. Enter the amount you want to sell and the DEX will automatically calculate and display amount of receiving cryptocurrency. Review the transaction details such as crypto amounts, slippage tolerance, transaction speed and fees. Finally, select “Trade” or “Swap” option and confirm the transaction.

Monitoring and Managing

After initiating the transaction, it would be processed by blockchain network. The processing time can vary from few seconds to several minutes, depending on network congestion. Once transaction is completed, you can check your wallet balance to see if you have received new cryptocurrency.

You can also navigate to transaction history in your wallet to see status of your trade. The wallet also generates a transaction hash or transaction ID which you can enter in blockchain explorer application to see status of the specific transaction you have executed on DEX. Additionally, you can also use portfolio tracker app to monitor performance of your trades and current crypto holdings. These portfolio apps usually integrate with crypto wallet, allowing users to manage their crypto assets effectively.

Kucoin review 2024: Trading Experience and All Features

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crypto exchange reviews

KuCoin: Maximize Your Trades with Competitive Fees and Rewards

Kucoin is a leading crypto exchange that provides access to around 700 tradable coins in spot market. The platform also supports derivatives and margin trading and provides seamless experience for traders and investors. In addition to manual trading, it also provides trading bots which can be used for sophisticated trading strategies. Professional traders can leverage all these tools to grow their crypto portfolio.

Apart from trading services, Kucoin also offers staking and investment products which we will explore in detail in this review. Launched in 2017, this crypto exchange now has over 30 million users from 200 countries in the world.

Pros and Cons

ProsCons
Around 700 tradable coinsCan be difficult for beginners
Wide range of derivatives contractsNot regulated in some regions
Supports several trading bots like spot, futures and infinity grid 
Staking products and structured investment products also available 
  
  

Trading Fees

Kucoin takes decent fees for spot and futures trading. The fee structure also depends on monthly trading volume and VIP level. At higher levels, users pay less fees. Here’s the fee structure for spot trading:

VIP LevelAmount of KCS HeldorSpot Trading Volume – USDT (Last 30 Days)orFutures Trading Volume – USDT (Last 30 Days)Maker/TakerPay Fees with KCS (20% off) Maker/Taker24h Withdrawal Limit (USDT)
LV0<1,000or<3,000,000or<5,000,0000.100% / 0.100%0.080% / 0.080%1,000,000
LV1≥1,000or≥3,000,000or≥5,000,0000.090% / 0.100%0.072% / 0.080%3,000,000
LV2≥10,000or≥6,000,000or≥8,000,0000.075% / 0.090%0.060% / 0.072%3,000,000
LV3≥20,000or≥13,000,000or≥16,000,0000.065% / 0.085%0.052% / 0.068%5,000,000
LV4≥30,000or≥35,000,000or≥40,000,0000.045% / 0.065%0.036% / 0.052%5,000,000
LV5≥40,000or≥55,000,000or≥60,000,0000.035% / 0.055%0.028% / 0.044%10,000,000
LV6≥50,000or≥100,000,000or≥120,000,0000.025% / 0.045%0.020% / 0.036%10,000,000
LV7≥60,000or≥180,000,000or≥200,000,0000.015% / 0.042%0.012% / 0.0336%15,000,000
LV8≥70,000or≥250,000,000or≥300,000,0000.010% / 0.040%0.008% / 0.032%15,000,000
LV9≥80,000or≥350,000,000or≥400,000,0000.000% / 0.040%0.000% / 0.032%30,000,000
LV10≥90,000or≥550,000,000or≥600,000,0000.000% / 0.030%0.000% / 0.024%40,000,000
LV11≥100,000or≥750,000,000or≥800,000,000-0.003% / 0.025%-0.003% / 0.020%50,000,000
LV12≥150,000or≥950,000,000or≥1,000,000,000-0.005% / 0.025%-0.005% / 0.020%60,000,000

Trading Experience

The spot trading interface is not very beginner-friendly. New investors may struggle with the trading tools and features. The trading platform provides a comprehensive set of tools and resources for traders to execute spot trades efficiently. For fostering advanced strategies, it also provides several advanced order types such as OCO, trailing stop, advanced limit and more. In the single platform, you can switch to manual trading or bot trading. Chart comes with various tools and technical indicators that can be used in technical analysis.

Kucoin also provides wide range of futures products such as USDT-margined contracts, USDC-margined contracts and coin-margined contracts. Kucoin offers high liquidity and efficient order matching system which provides seamless experience for derivatives traders. Furthermore, Kucoin supports several trading bots including spot grid, futures grid, infinity grid and margin grid, smart rebalance and DCA bots. Each bot has built-in strategy aimed to exploit the crypto market conditions to generate profits.

Other Features

While Kucoin provides exceptional trading services, it also excels in other investment products specifically designed for those who want to earn passive income with crypto holdings. These include staking, lending, savings account, and advanced investment products like Shark Fin and Snowball.

You can stake a variety of coins such as USDT, AVAX, KCS, BNB and more to earn yields. You can also invest your assets in Shark Fin products, which offer principal protection and the potential for higher yields. Shark Fin products use call option contracts to generate returns based on the investor’s market predictions.

Customer Service and Satisfaction

Kucoin provides customer support through multiple channels such as live chat, and email. It also provides a comprehensive FAQ section and guides which can be helpful if users have specific queries or problems.

There are around 32 reviews about Kucoin on G2 which makes it overall rating 2.9 out of 5. Many customers seem to admire the availability of wide range of coins, low trading fees, security features, and smooth trading experience. On the other hand, some customers complain about poor customer support, and account problems.

Company Overview

Kucoin company was developed by Michael Gan and Eric Don in 2017. They had the vision to provide a secure and convenient environment for crypto trading. Subsequently, KCS token was also launched as native coin of Kucoin exchange that can be used for discounts on transaction fees. In 2019, Kucoin also launched margin trading service. With multiple developments aimed at expanding Kucoin’s ecosystem, the user base also grew significantly. Now, Kucoin has around 30 million users from 200 countries in the world. Kucoin company is currently based in Seychelles.

Top 5 Instant Exchange Platforms in 2024

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instant exchange

How Instant Exchanges Work

Instant exchanges streamline trading by eliminating the need for order book system. Unlike spot trading platforms that rely on order book system for matching buy and sell orders, instant exchanges facilitate immediate transactions. They use internal systems for aggregating liquidity and for instant matching of orders. This enables fast trade execution at current market prices.

Once traders choose a specific crypto pair and cryptocurrency they want to purchase, they can select fixed rate or floating rate. After entering the amount to be purchased, the user confirms the transaction. The instant exchange platform then processes the trade, executing it quickly and recording it on the blockchain. Internal systems handle the trade execution and charge a specific fee.

Usually, instant exchanges charge higher transaction fees compared to traditional crypto exchanges. Platforms like ChangeNow also supports mobile app, providing a beginner-friendly interface for swapping cryptocurrencies.

Top 5 Instant Exchanges

When selecting an instant exchange, ensure the platform has robust security, a good reputation, a wide range of supported cryptocurrencies, and a user-friendly interface. Although instant exchanges typically charge higher fees, some platforms offer competitive rates.

While most of the exchanges do not require user account, some of them may require KYC process. You can connect your crypto wallet or directly purchase crypto using the payment methods available on the exchange to get started.

  1. SimpleSwap

It is popular instant exchange specifically developed to simplify the swapping of cryptocurrencies. It allows swapping of over 500 cryptocurrencies at both fixed, and floating rates. With its user-friendly interface, beginners can easily swap cryptocurrencies. Being a non-custodial platform, it does not store users’ crypto but only processes the transaction. By joining the loyalty program, users can also earn BTC cashbacks for every exchange they make.

Unlike traditional crypto exchange, it does not require any sign up. Users only need to connect their crypto wallet to the platform to start swapping crypto. Additionally, you can also purchase crypto using multiple payment methods such as credit, debit cards, or bank payments. SimpleSwap is suitable for both beginners and expert investors.

  • ChangeNow

It is a non-custodial instant exchange used for swapping cryptocurrencies. ChangeNow uses the liquidity provided by 10 CEXs and DEXs to facilitate trades and ensures competitive rates. It supports around 700 coins and a wide range of trading pairs. Users can start swapping crypto without any sign up. ChangeNow also provides mobile app for android users.

You can also utilize the Pro service which offers 3 plans which can be used for earning cashback rewards. Free plan is also available offering 0.1% cashback rewards and unlimited crypto loans.

  • StealthEx

It is a beginner-friendly crypto exchange that allows instant swap of cryptocurrencies. StealthEx also does not require any account registration or KYC process. Users can exchange any amount of crypto but are required to pay network fees. It supports swapping of over 1400 assets. The vast range of supported cryptocurrencies makes this platform worthy for exchanging crypto.

In addition to the swapping services, StealthEx provides educational resources to help users understand the process better. For any issues or queries, they also provide customer support via email.

  • Changelly

It is one of the oldest instant exchanges used to swap cryptocurrencies. Both desktop platform and mobile app are available to facilitate swapping of coins. Changelly supports wide range of crypto assets and allows instant exchange of these assets through its user-friendly interface. It is non-custodial platform which means crypto are not stored on platform. Just like all instant exchanges, it also charges network fees although it does not charge any additional fees. This platform aims to provide seamless experience for users looking to exchange crypto efficiently.

Unlike traditional crypto exchanges that may offer advanced trading features, Changelly focuses on instant exchange service.

  • SwapSpace

It is another user-friendly instant exchange that supports a diverse range of crypto assets and pairs. For instance, it supports 1750 coins at best market rates. Interestingly, SwapSpace also displays swap offers with competitive rates and time duration. It aggregates liquidity from 30 partners which includes popular centralized exchanges, and other instant swap services. Both fixed and floating rate options are available. SwapSpace is a convenient and secure platform for users looking to swap cryptocurrencies quickly and without the hassle of account registration. Its non-custodial nature and support for a wide range of digital assets make it an attractive option for both beginners and seasoned traders.