Deribit is a Bitcoin trading platform that allows people worldwide to participate in futures and options trading.
The project team formed the name of their website by merging the initial letters of the words Derivatives and Bitcoin. Members are able to use Bitcoin for making deposits, withdrawals, and securing their trades.
The platform enables traders to utilize up to 100x leverage for Bitcoin futures trading. Although not as widely recognized as some other cryptocurrency futures exchanges, Deribit is gaining traction and becoming a compelling option for crypto enthusiasts engaged in futures trading.
Deribit Based in the Netherlands, Deribit is a derivatives exchange operated by a team working from their office in Amsterdam. The project, which started in 2016, is officially registered as Deribit B.V. and has its registered address at Stationsstraat 2 B, 3851 NH, Ermelo, The Netherlands.
The company was established by its present CEO, John Jansen, along with CTO Sebastian Smyczyński. Both being enthusiasts of Bitcoin and trading, they aimed to develop a platform aligned with their interests. The Deribit team is known for its transparency and consists of CMO Marius Jansen and Lead Developer Andrew Yanovsky.
Although the platform operates with transparency, every transaction is exclusively conducted in BTC. Deribit currently functions as an unregulated broker since European regulators have not yet designated cryptocurrencies as financial instruments and are still developing a unified regulatory framework.
Nevertheless, the platform is accessible to residents from more than 100 countries, offering traders benefits such as fee-free deposits and withdrawals, leverage up to 100x, and competitive trading fees.
Deribit Features
- Functionality Deribit operates a web-based trading platform with an intuitive and user-friendly interface that offers a wide array of features. Standard components like the order book, trading history, and recent trades are well-organized. Additionally, the platform provides charts for futures, indexes, and volatility, along with a variety of statistics, technical analysis indicators, and essential data related to futures—options trading.
- Technology The exchange aims to be technologically cutting-edge, enabling users to trade using their trade matching engine with latency of less than 1 millisecond. Additionally, users have the options to trade through a web interface, mobile apps (iOS/Android), or API. Deribit also integrates with other platforms to facilitate trading. trading bot software such as HaasOnline and Actant. Additionally, the platform utilizes cold storage to protect about 95% of user funds.
- Trading Options Deribit offers a wide variety of trading choices, giving users access to both Options and Futures exchanges. The platform excels in providing leveraged trading with up to 10x leverage, while Bitcoin futures can be leveraged up to 100x. Additionally, users can engage in margin trading and test their trading strategies on the Deribit test net, where they receive 10 BTC worth of demo funds for practice.
- Customer Support The website offers content in English, Spanish, Chinese, Russian, Korean, Japanese, and Turkish. Additionally, a support team is on hand to address any problems, and they list email addresses in the members section. The Deribit team can also be reached through their Twitter account or Telegram group, and they maintain a Blog, a Docs page, and an FAQ section that covers various important topics. They also operate a YouTube channel featuring several instructional videos.
Deribit Customer Support Email: support@deribit.com
How to Get Started on Deribit
On the Deribit website, a login and registration panel is prominently shown in the center of the page. To get started, simply click on the “Create Account” button.
1) Create an Account
You can sign up by submitting your email address, username, password, and country of residence.
Once you’ve verified your email address by clicking the link in the confirmation email, you can access your account.
2) Make a Deposit
To add funds to your account, click the “Deposit” button at the page’s top-right corner. This will generate a deposit address, enabling you to transfer Bitcoin into your Deribit account. After completing the transfer, Deribit will require only one confirmation before you can start trading.
The process for making a withdrawal remains quite similar. You can find the “Withdrawal” tab within the “My Account” section. On the withdrawal page, you will need to input your BTC wallet address and specify the amount you wish to withdraw. There are several priority-level options available, which correspond to the withdrawal fees you’re willing to pay. The higher the priority you choose, the greater the fee will be.
3) Select BTC Futures or Options Trading
You can explore your account to choose your desired type of trade. The primary options are displayed on the left side of the dashboard, and other important features are positioned in the center.
Futures contracts are typically standardized with monthly expiration dates. Deribit determines its price index by sourcing data from several major exchanges such as Bybit, Binance, Gemini, and Kraken.
Deribit offers futures contracts priced at $10 each. You can select from various order types by utilizing the order panel on the left side, including Limit, Market, Stop Market, and Stop Limit.
The Stop Limit feature lets users manage risk by adjusting the Trigger and Stop prices based on the Buy or Sell preference. Once the potential order is reviewed, it can be finalized by clicking on BUY or SELL. The confirmed order will then display at the bottom of the page alongside all open orders and positions.
The platform offers European style options which cannot be exercised before their expiration date, unlike US style options. To access the Options section, click on BTC Options located at the top-left corner of the screen.
You can access order forms by simply clicking on any order listed on the back of the order panel.
The platform additionally offers a live testnet for its users, requiring them to set up a separate account. test.deribit.com Upon registration, users are awarded 10 BTC in demo funds. These funds can be utilized to experiment with different strategies and familiarize themselves with the platform and the broader realm of derivatives trading.
The testnet can also be utilized to refine bots that might eventually be deployed on live accounts using the Deribit API.
Supported Currencies & Fees
Deribit focuses on trading Bitcoin (BTC) futures and options, requiring its users to deposit BTC into their accounts. At present, the platform does not support fiat currency deposits. To acquire BTC, more proficient users typically purchase it with fiat money on exchanges like Coinbase and Gemini—Kraken before moving them to Deribit.
The team does not charge any fees for deposits. However, a fee for withdrawals is determined by the Bitcoin network’s mining fees.
The exchange employs a maker-taker fee structure. Futures orders that enhance liquidity earn a rebate of 0.02%, whereas those that reduce liquidity are subject to a 0.05% fee. For perpetual contracts, orders that contribute to liquidity receive a rebate of 0.025%, while those that deplete liquidity face a fee of 0.075%. The specific fees are listed as follows:
Perpetual Contracts
- Maker Rebate: 0.025%
- Taker Fee: 0.075%
Futures
- Maker Rebate: 0.02%
- Taker Fee: 0.05%
Options
- 0.04% of the underlying asset or 0.0004 BTC per option contract
- The fees are capped at a maximum of 12.5% of the option’s price.
Futures liquidations fees
- 0.35%
Continuous contract liquidation charges
- 0.375%
Options liquidations trades
- 0.19% of the underlying asset, or 0.0019 BTC per options contract.
For futures and perpetual contract liquidations, 0.30% of the fee is allocated to the insurance fund. In the case of options liquidations, the insurance fund receives 0.15% of the underlying asset or 0.0015 BTC per contract.
Deliveries
Deliveries are charged half the fees compared to taker orders, thus:
- Futures: 0.025%
- Perpetual Futures: 0.025%
- Options: 0.02%
Is Deribit Safe?
The team employs cold storage to ensure the safety of their users’ funds, with around 95% of all BTC stored this way. This strategy enhances the platform’s resistance to hacking attempts, though it may result in slower withdrawal times for customers.
Moreover, to enhance the security of user accounts, Deribit offers two-factor authentication (2FA). However, this feature is not activated by default and needs to be configured after you log in.
Additionally, IP pinning enhances security by detecting when an IP address changes during a session and ending the session if such a change occurs. The platform also enables users to modify their session timeout settings, allowing the default inactivity period of one week to be reduced to just one hour.
Nevertheless, it’s recommended only to store funds on an exchange while actively trading. Additionally, Deribit maintains an insurance fund designed to compensate for the losses of traders who go bankrupt.
Most trader positions should be reduced or closed using the platform’s real-time incremental liquidation system, yet bankruptcies still happen.
The insurance fund enables profits from unsettled futures to be withdrawn immediately after settlement. This fund is sustained through liquidation order fees. If the fund runs out, the losses from bankruptcies are distributed among the traders who have made gains. A record of bankruptcies is kept on the “Insurance” page.
Is Deribit Suitable for Beginners?
Individuals who are new to cryptocurrency trading might be accustomed to accessing an exchange platform to trade various cryptos for either digital assets or traditional currencies. Nonetheless, Deribit operates within the more complex realm of derivatives, which might not be ideal for beginners.
Furthermore, the option to engage in margin trading and leverage trades introduces an extra layer of risk, making the futures and options market more appropriate for seasoned traders.
Nonetheless, the team has launched their live testnet, enabling users to practice trading with 10 BTC in demo funds. This testnet offers an opportunity to learn different strategies, familiarize themselves with the somewhat complex interface, and explore various analytical tools.
The team has also provided a variety of resources to assist traders in enhancing their skills. These resources include a blog, a documentation page, an FAQ section within the members’ area, and a YouTube channel featuring several instructional videos.
Consequently, although it might not be the ideal platform for beginning live trading, it can still serve as a valuable resource for learning how to trade derivatives.
Deribit Pros & Cons
Pros
- Transparent team
- Futures and options trading are available
- Competitive trading fees
- No deposit or withdrawal fees
- High leverage offered
Cons
- Not regulated
- No fiat support
- Limited Cryptocurrencies
Deribit primarily focuses on Bitcoin, Ethereum, Solana, XRP, Matic & USDC derivatives trading and offers users the opportunity to engage in futures and options trading. The platform includes various features that could potentially give it an edge over other exchanges such as BitMEX Digitex offers several features such as low fees, leverage of up to 100x, test trading, and an insurance fund. However, trading Bitcoin derivatives is still a relatively new phenomenon and currently makes up only a small portion of the trading volume.
Furthermore, due to the ambiguous nature of EU regulations, Deribit operates without regulation despite providing derivatives. This complexity of the service may pose challenges for less experienced traders.
The platform does not facilitate fiat payments, and all accounts are maintained in Bitcoin, thus exposing users to the constant fluctuations in BTC value. Additionally, the exchange restricts access for individuals from certain regions and is presently inaccessible to residents of the United States, Canada, and the Netherlands.
Nevertheless, Deribit offers a feasible option compared to other platforms. Bitcoin futures Trading platforms offer a wide array of features designed to attract and cater to more advanced traders. The platform offers seasoned futures and options traders precisely what they desire, with its extensive analytics, high leverage, and insurance fund likely to be very appealing.
A platform might be more suitable for traders who have less experience. such as PrimeXBT which enables its clients to trade Contracts for Difference (CFDs) on cryptocurrencies and is far simpler to navigate. Individuals who are new to Bitcoin futures trading and are determined to enter the field should first utilize written materials and videos before practicing with a demo account.
Because of its various features, Deribit is a robust choice for Bitcoin derivatives trading, though it may not be suitable for beginners.
