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Nov 7, 2023

Best Cryptocurrency Perpetual Contracts Exchanges for 2023

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Cryptocurrency perpetual contracts allow traders to speculate on the future price of digital assets with leverage. Choosing the right exchange is crucial. In this guide, we'll compare the top platforms for trading bitcoin and crypto perpetuals.

Introduction to Cryptocurrency Perpetual Contracts

A perpetual contractm is a derivative product that mirrors an asset's live spot price. It allows traders to go long or short with leverage without settling at expiry. Popular crypto perpetuals include BTC/USD, ETH/USD, and more.

Key benefits of trading perpetuals include:

  • Use leverage to magnify gains from correct price speculation

  • Easily implement risk management strategies like stops

  • Trade 24/7 as contracts have no expiry dates

When selecting an exchange, liquidity, fees, and risk management tools are key factors.

The Best Cryptocurrency Perpetual Contract Exchanges

Here are the top 11 platforms for trading bitcoin and crypto perpetual contracts:

1. Binance

Binance offers perpetuals for dozens of major cryptos up to 125x leverage. Liquidity is unmatched and trading fees are among the lowest at 0.02%.

2. Bybit

Bybit focuses on perpetuals with great liquidity. They provide up to 100x leverage and robust risk management solutions. Fees are 0.06%.

3. BitMEX

As a perpetuals pioneer, BitMEX offers up to 100x leverage but is best for advanced traders due to limited order types. Fees are 0.075%.

4. FTX

FTX has strong liquidity with up to 50x leverage on perpetuals for major cryptos. User interface is intuitive and fees range from 0.015% to 0.07%.

5. Deribit

Deribit specializes in crypto options and futures. Their BTC perpetuals are among the most liquid with up to 100x leverage and fees as low as 0.025%.

6. OKX

Formerly Okex, OKX offers major crypto perpetuals with up to 100x leverage. Their liquidity depth is respectable and fees range from 0.025% to 0.1%.

7. Huobi

Huobi offers perpetual swaps for top cryptos with up to 125x leverage. Liquidity is decent and trading fees are set at 0.020%.

8. Kraken

Kraken has limited leverage at just 5x but is suitable for beginners. Their range of perpetuals is focused and fees are a competitive 0.014% to 0.024%.

9. Coinbase

Coinbase Pro offers up to 5x leverage on BTC, ETH, and LTC perpetuals. Low leverage makes it newbie friendly but liquidity is still developing.

10. Gemini

Gemini has low 1.5x - 5x leverage suitable for beginners. Their BTC and ETH perpetuals are growing in liquidity with fees at 0.10%.

11. Liquid

Quoine's Liquid offers 2x to 25x leverage perpetuals for about 15 major cryptos. Trading fees are competitive at 0.015% to 0.10%.

Key Factors When Selecting a Crypto Perpetuals Exchange

Consider factors like:

  • Trading fees

     

    - Look for platforms with maker/taker models under 0.10%.

  • Liquidity

     

    - Volume and order book depth are vital for best pricing.

  • Order types

     

    - Advanced types like stops and trailing stops are useful for risk management.

  • Margin requirements

     

    - Higher leverage means lower margin requirements.

  • Leverage limits

     

    - Higher available leverage means greater profit potential from correct bets.

  • Customer support

     

    - Responsive support is crucial for trading inquiries.

  • Security

     

    - Robust encryption, audits, and custody solutions are essential.

Conclusion

Trading cryptocurrency perpetual contracts allows speculating on crypto prices with leverage. Focusing on liquidity, fees, risk management, and security will lead you to the best exchange. We hope this guide has shed light on top platforms like Binance, Bybit, and FTX to consider in 2023.

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