In this article, we are going to let you know what the best crypto exchanges are for Futures Trading. First, we are going to define Futures Trading and Perpetual futures. We are going to let you know briefly the most important factors to choose a crypto exchange, then we are going to discuss specifically which factors are crucial to take into account when choosing a crypto exchange for Futures Trading. Last but not least, we are going to select the top 6 crypto exchanges for Futures Trading.
What is futures trading?
Futures trading is an investing strategy that involves contracts for future delivery of goods or services. The buyer agrees to purchase the asset at a set price on a future date, while the seller agrees to deliver the asset at that price. The main interest of future trading is that traders can make profit on bullish as well on bearish markets. Futures contracts are typically used for commodities such as oil, wheat, or gold, but they can also be used for financial instruments such as bonds or currencies as well as for cryptocurrencies. Traders use futures contracts to speculate on the future price of an asset or to hedge against price fluctuations. When speculating, traders aim to profit from changes in the price of the underlying asset. When hedging, traders seek to protect their portfolios from potential losses. Futures trading is a complex and risky investment strategy, and it is important to obtain professional advice before entering into any futures contracts.
What are perpetual futures trading?
Perpetual futures are a type of cryptocurrency trading that allows investors to speculate on the future price of an asset without having to buy or sell the underlying asset. Perpetual futures contracts are similar to traditional futures contracts, but they do not expire. This means that traders can hold their positions for as long as they wish. They can also be liquidated at any time. Perpetual futures are traded on margin, which allows traders to leverage their positions. This makes perpetual futures a high-risk, high-reward investment. Perpetual futures are still a relatively new concept, and they are not yet available on all exchanges. However, they have become popular with traders who are looking to take advantage of the volatile nature of the cryptocurrency market.
How to chose a crypto exchange for Futures Trading ?
For those looking to get involved in futures trading, it is important to choose a crypto exchange that offers this service. There are a few things to keep in mind when choosing an exchange for futures trading. First, it is important to make sure that the exchange offers the type of futures contract you are interested in trading. Second, it is important to compare fees and commissions charged by different exchanges. Third, it is important to consider the exchange’s liquidity, which will determine how easy it is to buy and sell contracts. Finally, it is also important to consider the jurisdiction in which the exchange is located, as this can impact regulatory issues. By keeping these factors in mind, you can choose an exchange that best suits your needs for futures trading.
1 – Binance: the market leader of futures and perpetuals
Binance is probably the best choice for those looking to trade futures and perpetuals. First, Binance is one of the largest crypto exchanges in the world, with the highest liquidity and a large selection of assets. More than $10 billion are exchanged daily on Binance on average on more than 1500 markets and 400 coins. This is important because it means that trades can be executed quickly and at a fair price. Second, the trading fees on Binance are the lowest on the market which can make a big difference in the long-term. Third, Binance crypto exchange offers a wide range of options for both experienced and novice traders. Binance’s futures trading platform is user-friendly and provides a variety of tools and resources to help traders make the most of their trading experience. We can also appreciate the implementation of trailing stop loss orders. Binance also accepts 45 Fiat currencies. Overall, Binance is a great choice for those looking to trade futures and perpetuals, with margins of up to 125x. One thing to consider though is that Binance is not available on the US market. The service in the USA is called Binance US, but is not as widely used as Binance’s main platform.
Registering using our link will get you a 10% discount on your trading fees.
2 – KuCoin: the altcoins and gems leader
KuCoin is also an actor to consider when looking for a crypto exchange to trade futures and perpetuals. Its positioning aims directly at altcoins. Consequently, KuCoin is the exchange with the most different coins, currently gathering more than 700 cryptocurrencies on its platform on over 1300 different markets. Although not comparable to Binance in that extent, about $1 billion are exchanged daily on KuCoin which is a respectable amount that will allow you to place your orders quickly. You can trade with a margin of up to 100x on popular markets such as BTC to USDT and ETH to USDT. We can also appreciate the fact that KuCoin has several trading bots functionalities that can automate your trading. It also offers a community trading platform on which you can copy trades of successful traders, or share your own trades, which will make you a few dollars. Last but not least, KuCoin’s mobile app is very user-friendly. On the down side you may find out that the fees on KuCoin are not on par with Binance.
Registering using our link will get you a 20% discount on your trading fees.
3 – Bybit: a newcomer with great potential and low fees
Bybit is a cryptocurrency derivatives exchange that offers futures and perpetual contracts on more than a 100 markets. Bybit is headquartered in Singapore and was founded in 2018. Bybit has a total daily trading volume of over $300 millions and has a very high growth rate due to its appealing features. Bybit’s main features include high leverage (up to 100x), low fees (0.025%), and a user-friendly interface. Bybit also offers 24/7 customer support and has a mobile app. Bybit is safe and secure, with all user funds stored in cold wallets. Overall, Bybit is one of the best crypto exchanges for trading futures and perpetual contracts.
Registering using our link will get you a 15% discount on your trading fees.
4 – FTX: low fees and excellent customer service
FTX Exchange is a cryptocurrency derivatives exchange that offers futures and perpetuals on a variety of coins. The main feature of FTX Exchange is its low fees, which are just 0.02% for takers and 0.0008% for makers. FTX also offers a variety of other features, such as margin trading, OTC trading, and multiple order types. FTX currently offers over 280 different coins, with a daily trading volume of over $1 billion. In addition to its low fees, FTX Exchange is also known for its excellent customer service and user-friendly interface.
5 – Kraken: a strong option for trading futures
Kraken is a San Francisco-based crypto exchange that offers futures and perpetuals trading. Kraken was one of the first exchanges to offer crypto futures trading and has established itself as a leader in the space. Kraken offers a wide range of features and benefits for futures and perpetuals traders. Kraken’s platform is user-friendly and offers a wide range of charting and analysis tools. Kraken also offers a mobile app, which is great for busy traders on the go. In addition, Kraken offers competitive fees, low margin requirements, and a wide range of currency pairs with about 600 markets made of 200 different pairs. On average, about $500 million are exchanged every day on Kraken. It is a strong choice for serious traders looking for a comprehensive, user-friendly platform with competitive fees.
6 – Coinbase Pro: volume and security
Not to be mistaken for Coinbase Wallet, Coinbase Prois a US-based crypto exchange offering futures and perpetuals trading with up to 50x leverage. Coinbase offers more than 100 perpetual markets end is only second to Binance in terms of trading volume with a bit less than $2 billion exchanged per day. First of all, Coinbase’s main advantage is security. Coinbase is a highly trusted and regulated exchange in the US with insurance coverage for user funds. Second, Coinbase has a user-friendly platform with advanced features such as margin trading. Fees are quite expensive comparing to the other exchanges we have presented, however there is no deposit fee and withdrawals are free.
Conclusion: the best exchange for futures and perpetuals
When it comes to futures trading, there are a number of great exchanges to choose from. The six listed above are our top picks. Binance is the market leader and offers excellent products and services. KuCoin is another strong option with a focus on altcoins and gems. Bybit is a newcomer that has quickly gained a following thanks to its low fees and excellent customer service. FTX is also worth considering for those looking for low fees and good customer service. And finally, Kraken should not be overlooked as it offers solid options for futures traders. Ultimately, the best exchange for you will depend on your individual needs and preferences. Each has its own strengths and weaknesses, so be sure to do your own research before deciding which one is right for you.