Points to consider while choosing the best Bitcoin Derivative Exchange

By Guest Author
Published September 30, 2019 Updated December 10, 2019
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Points to consider while choosing the best Bitcoin Derivative Exchange

By Guest Author
Published September 30, 2019 Updated December 10, 2019
  • Bitcoin derivative exchange with high leverage is one of the best to consider.
  • Derivative exchange can seem appealing, it’s quite risky especially for beginners.

Definition of Derivative

This is a financial security that is reliant upon or derived from an underlying asset or group of assets- a benchmark. The derivative itself s a contract between two or more parties, and the derivative derives its price from fluctuations in the underlying asset. This definition is according to Investopedia.

Assets like Cryptocurrency, stocks, bonds, currencies, bonds, market indexes, commodities, and interest rates are commonly used in derivative exchange. Its mode of purchase is through brokerages.

Some of these derivative exchange platforms include Bitmex, BaseFex, Deribit, OKEx, bitFlyer Lightning, CME & CBOE, Coinbase, eToro, CoinFLEX, and Binance.

Factors to consider for the best Bitcoin Derivative Exchange

  • The exchange that provides both cryptocurrency futures and options products. This enables users to have enormous leverage capabilities of up to 100x when speculating on the USD price of Bitcoin. The higher the leverage, the more money you can earn per price point. Furthermore, you can also lose money so fast.
  • A derivative exchange that only focuses on Bitcoin will enable the provision of better services compared to the ones which delve into altcoins.
  • Features like price chart, an order book, technical analysis tools, and algorithmic trading tools are very important in terms of the derivative product identification before participating in a trading platform.
  • An exchange that offers derivative trading products at low fees that can be traded with fiat currency. This includes fees for market makers, market takers, and the perpetual contract.
  • Enhanced security practices in the cryptocurrency market are key, therefore, it’s a requirement for an exchange to store users’ funds on multi-signature cold storage wallets. For instance, some exchanges require 5 out of 7 partners to sign for a transaction to take place. In addition, the public or private keys are not stored on the servers in order to provide better privacy and security.
  • A derivative exchange platform that accepts users from almost all countries in the world including Australia, Canada, the EU, and the UK. It makes it easier for users to access services from across the world.
  • The exchange should apply circuit breaks to assist in handling the volatility of the market. They help in halting the market if the price moves a certain percentage within a trading session.
  • Efficient customer support is significant in case, a user experiences any issues with his/her account it’s easy for him/her to access help.


Investing in derivatives can seem appealing, but it has a lot of risks and not suitable for beginners. It’s advisable to check all the options and get all the knowledge about the products in order to minimize the risks. Its recommended for users to use advanced trading strategies for better risk management.




The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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