The cryptocurrency market was once reliant on very few exchanges where users could swap digital assets. Today there are a plethora of options for traders to choose from.
These range from traditional centralized exchanges to fully decentralized alternatives. This evolution has included a huge increase in the variety of assets that are available to trade on these exchanges, and the introduction of derivative exchanges – platforms that facilitate the trading of assets like options, futures, and perpetual contracts.
Here we will cover some of the top centralized derivative exchanges as well as a couple of DEXs that are new to the market and provide derivatives exposure on-chain.
Bybit: Launched in early 2018, Bybit is one of the largest derivatives exchanges in the crypto market today. 24-hour volume is often over $10 billion, meaning the trading pairs are extremely liquid.
This is often a key issue for derivative exchanges as spot assets are far more thickly traded than most derivatives. With over 1 million registered users and an intuitive mobile app, Bybit’s customer-focused approach is proving popular with derivatives traders.
A 24/7 multi-language support service and transparent trading environment are features many exchanges lack and by providing these in addition to deep liquidity, Bybit is now seen as the go-to exchange for crypto derivatives.
Binance Futures: Over the last few years, Binance has become synonymous with access to the long tail of cryptocurrencies, featuring hundreds of assets.
As a spot exchange, Binance regularly appears on lists of the best places to trade crypto. However more recently Binance has also launched derivative products via Binance Futures.
This offering from Binance gives traders access to futures contracts, options and up to 125x leverage with a claimed account opening time of just 30 seconds.
Crypto.com: With possibly the best url in the whole market, Crypto.com also has one of the most diverse product lineups in the crypto space.
These include crypto-based credit cards, collateralized loans and of course a spot and derivatives exchange. In terms of variety, Crypto.com is certainly one of the best in offering a huge amount of tools aggregated into one platform.
This approach will see the company continue to introduce new assets and services to meet customer demand and stay ahead of the competition.
https://t.co/vCNztABJoG Launches Derivatives Exchange:
⚡New, highly scalable architecture
⚡Matching Engine with 2.7m TPS
⚡Ultra low core latency of 50 microseconds
🔥Get 50x leverage with the BTCUSD Perpetual Contract
— Crypto.com (@cryptocom) February 18, 2021
DyDx: One of the more recent trends in the crypto market has been the growth of decentralized exchanges. Although these are usually spot markets, DyDx is one of the first to offer on-chain perpetual contracts.
Despite being a decentralized exchange, DyDx does have a visible order book showing L2 data and built-in interactive charting software. And of course as it is Ethereum-based, users just need to connect their wallets and start trading.
FinNexus: Finally, a lesser known but very interesting project is FinNexus. Although crypto options are now available on several exchanges, it is rare to find them on a decentralized platform.
Several crypto assets are available as the underlying on the options offered and the interface is simple to use.
As blockchains like Ethereum improve and scale their number of transactions per second, more trading is going to move to being done on-chain.
Of course centralized exchanges will always have a large role, but the variety and complexity of assets traded on decentralized exchanges is only going to increase over time.