If you’re interested in exploring futures and options trading in the crypto-world, Deribit offers a variety of options to derivative-focused traders. This Deribit review will tell you everything you need to know about their trading platform and help you determine whether it’s the right choice for you.
- Operating Since 2016
- Cryptocurrencies Supported BTC, ETH, USDC
- Fees Varies
- Deposit Methods Only accepts BTC deposits
- Fiat Currencies Supported
- Verification Methods Email and 2FA
- Margin Trading Yes
- Futures Trading Yes
- Deribit Overview
- Is Deribit Suitable for Beginners?
- How Does it Work?
- What Currencies does Deribit Support?
- Trading and Deposit Deribit Fees
- Liquidation Fees
- Deribit API
- Customer Support Team
- Opening a Deribit Account
- PROS & CONS
- Deribit Exchange Review for Australia
- Deribit Exchange Review for Canada
- Deribit Exchange Review for UK
Even if you’ve only engaged in more traditional forms of crypto trading in the past, Deribit provides an intuitive platform that makes it easy for users to expand their portfolios. Deribit offers up to 10x leverage trading for options and up to 100x leverage trading for perpetuals and futures.
Deribit was established in 2016 by John Jansen as an institutional-quality crypto derivatives trading platform. It was originally known as Deribit B.V but was later rebranded to be simply known as Deribit. The company was originally headquartered in the Netherlands in 2016 but is now located in Panama. The Deribit exchange was one of the first Bitcoin (BTC) options trading platform and has since become the biggest Bitcoin options by trading volume and open interest.
Even though the company built a dedicated Bitcoin derivates trading platform, Deribit added support for ETH options in 2019 to enable their users to trade all of the exchange’s crypto derivates contracts for Bitcoin and ETH.
Deribit boasts one of the most advanced crypto derivatives offerings in the options market, the crypto exchange hasn’t established itself as a regulated entity. Even though Deribit currently is not mandated to do so, the fast-changing regulatory landscape can be a concern for Deribit users out there.
Deribit provides competitive trading fees, futures trading, margin trading, multiple order types (such as stop-limit orders, limit orders, and market orders), and advanced charting.
Is Deribit Suitable for Beginners?
Besides being an intuitive derivatives exchange, Deribit allows users to utilize leverage in their crypto trading. While this practice can be risky, it can enable shrewd investors to increase their profits exponentially. Deribit also offers a variety of detailed analytical and informational tools that advanced users can use to optimize their trading strategies.
Unfortunately, newcomers may be a bit intimidated by the structure of Deribit’s platform, and futures trading can be challenging to understand if you don’t have a background in stock trading. If you’re new to the crypto space and are trying to figure things out, we recommend starting with a more typical trading platform before stepping into futures or options trading.
While Deribit may not be an accessible entry point into the crypto-world for newcomers, it can be a powerful tool for experienced users or those ready to step up their trading game. So, if what you’ve read so far has caught your interest, and you’d like to learn more, keep reading for a full review of Deribit’s platform and service.
How Does it Work?
Deribit is a trading platform designed to allow users to access various Bitcoin (BTC) and Ethereum (ETH) futures and options. Futures and options are Deribit’s specific purpose, so this isn’t for you if you’re looking for a typical crypto trading platform. However, if you’re already involved with futures trading or have been interested in learning more about it, Deribit has some advantages you’re going to want to hear about.
First, Deribit’s platform is highly intuitive and responsive, with very low latency time involved in trades and transfers. The service makes both standard and perpetual futures available to investors, giving you the chance to profit from trends in the industry. In futures trading, you achieve gains through assumptions or guesses about the value of a particular asset, either rising or dropping. You agree to buy or sell a specific asset for a certain price at a particular time and could pay well below market value or above it.
This type of investing depends on predicting the future, so having accurate and detailed data to review is crucial to making the best possible decisions. Deribit’s creators clearly had this in mind, as their system makes it very easy to sort through past price data and trends.
In terms of setup, Deribit is extremely simple compared to its competition. After signing up and creating an account, users will be able to choose between two verification tiers. The lower tier requires no identity verification, while the higher one comes with increased privileges but requires a form of ID.
Deribit users can trade using the platform’s mobile app, which is available for iOS and Android users or their web-based platform (deribit.com)
If you’re a frequent trader, we recommend reaching the higher verification level because the benefits are quite valuable, and Deribit is conscious of data security. Deribit then uses Chainalysis to ensure that the info given by their users is correct and bans users who used inaccurate data. This ensures that users can have faith in the trades they make using Deribit’s platform.
Just like popular crypto exchanges out there such as Binance, ByBit, Coinbase, Kraken, FTX, and Bitmex, Deribit holds more than 99% of their user funds to prevent a loss of user funds because of cybersecurity breach. The Deribit exchange also features two-factor authentication to enable their users to secure their Deribit trading accounts.
The cryptocurrency exchange also operates an insurance fund that exists to cover potential losses of traders with negative equity. Deribt customer’s can view the size of the insurance fund on their trading dashboard.
As the company enables users to trade with 100x leverage, crypto traders can take positions that are bigger than their account balances. To make sure that the users don’t incur higher loss than they can afford to pay the winning party, users’ positions are automatically liquidated once margin requirements can no longer be met. In this case, the insurance fund compensates the winning party, covering the loss left by the losing party to make sure that the winning party receives its whole payout.
Deribit uses a web-based trading platform and leverages a relatively easy to use and intuitive user interface that also includes a broad range of functions.
Common features such as recent trades, trading history, and order book are well laid out. Deribit also comes with key data related to futures and options trading, technical analysis indicators, volatility charts and a range of statistics, index, and futures.
Deribit’s matching engine follows a principle of ‘first come, first serve.’ The exchange can process thousands of orders per second and hundreds of orders per second from a single account. Though take note that Deribit doesn’t allow self-trading. But the good thing is, it has 24/7 trading hours.
Deribit’s platform offers an array of features that crypto-traders will find helpful. From quick and intuitive trading and searching to their range of customizable options, Deribit has something for every type of crypto investor.
Leveraging your trades can be an effective way of increasing your profits, but they can also increase the risk. Deribit offers competitive leveraging options, allowing users to leverage their bitcoin (BTC) by up to 100 times. Using leverage that high is risky, though, as you multiply not just your gains by this strategy, but your losses as well.
Another strategy made accessible by Deribit’s platform is options trading. Options are very similar to futures, but the agreement to buy the asset is optional. This type of investing offers more flexibility for buyers than futures but also carries some disadvantages. If you’ve engaged in crypto-currency options trading in the past, we recommend that you check out the tools offered by Deribit’s platform.
Options trading is inherently risky, and users should be careful about how they approach it. That said, options trading has been a central part of the traditional investment world for decades, and Deribit is helping to make the practice more accessible to the crypto world. While Deribit may not be the best entry-point to crypto for beginners, options trading can be highly profitable for experienced and savvy traders.
Options fees can never be more than 12.5% of the options price. For instance, if a Bitcoin option is traded at 0.0001 Bitcoin, the taker fee will be 0.0000125 Bitcoin.
What Currencies does Deribit Support?
While depositing with Deribit is extremely simple, the coins they support are currently limited. In terms of currently available cryptocurrency futures and options, Deribit exclusively supports Bitcoin (BTC) and Ethereum (ETH). While these are certainly the most popular players, crypto enthusiasts often like to see a wider variety of available currencies than just these two.
Fiat trading is currently not supported by Deribit, which can be an issue for some users. Although trading pairs are available through the system, users are not allowed to include Fiat currency in these pairs. However, Deribit does offer the option to make deposits using Fiat, so Fiat users should not rule out the service entirely.
Deribit supports Bitcoin and Ethereum. So, if you have to trade in options, perpetual contracts, or Bitcoin futures, you need to deposit Bitcoin and the same for Ethereum. Keep in mind that it doesn’t support any other cryptocurrencies.
Trading and Deposit Deribit Fees
Deribit is clearly striving to remain competitive with its fee structure. As they offer zero deposit fees, customers should feel comfortable trying out the service without the fear of losing money. Trading fees are also reasonable, with makers paying 0.025% maker fee and takers spending 0.075% taker fee per order. This fee structure remains consistent across their different trading features, so you’ll always be able to plan for your fees.
Just in case you’re new to crypto, a taker is someone who executes an order that gets filled right away, while a maker places an order that gets placed in an order book until a match is found.
The lower fees for price-makers mean that providing liquidity on Deribit’s trading platform can be a practical option. Cutting down costs always helps your profits and, when paired with Deribit’s sleek and informative trading dashboard, can be attractive enough to be worth changing platforms.
Withdrawal fees are dependent on the current state of the market, and it’s important to remember that Deribit keeps the majority of its coins in cold storage. This means that not all of the coins are available for withdrawal at once, so large withdrawals may take more time than usual to complete.
Deribit also charges a small delivery fee for the execution of the order at the time of expiry.
Deribit also charges liquidation fees when positions are liquidated. Liquidated fees differ for BTC and ETH.
- Bitcoin Futures and Perpetuals – 0.75%
- Options Contracts – 0.0019 BTC per options contract or 0.19% of the underlying asset
- Ethereum Futures and Perpetuals – 0.90%
Deposits are free on the Deribit exchange platform, while withdrawal fees will depend on the state of the Bitcoin blockchain network at the time of transaction.
While Deribit’s interface is well-designed enough to appear simple on the surface, there is a remarkable level of depth to the features on offer. A wide variety of analytical tools and information is available from the trading screen, and traders that find themselves constantly on the go will appreciate the in-depth mobile phone app that Deribit has created.
Although the UI is well-designed, the advanced nature of Deribit can make the system seem intimidating to some users. However, more straightforward BTC options are available, so if Deribit was overwhelming for you, don’t let it drive you away from crypto entirely.
If you’re interested in using Deribit but don’t know where to start, explore the demo account feature. This feature lets users explore how the service would function if active but with no actual crypto on the line. This feature is excellent for new users and is a perfect option for those still considering whether the service is right for them.
Deribit dedicates themselves to the safety of their users’ data, and the precautions they have taken in this regard show this clearly. With only 5% of user data stored online at any given time and the rest in offline “cold storage,” Deribit has effectively mitigated the risk of a data breach. Even if a hacker could gain access to the system, only a tiny percentage of the overall data would be reachable.
This type of security system is great to see because it shows that the team of Deribit is forward-thinking and conscious of security. The fact that Deribit doesn’t house your data on a network means that your data may be safer with Deribit than with many of the companies you share data with daily. So many companies talk a big game about data security, but it’s rare to see a plan as solid as this one.
This isn’t enough for the team at Deribit, though, as the company has also been known to independently hire skilled hackers to attempt to breach their system and identify security flaws. These types of preemptive measures can prevent the kinds of leaks and shutdowns that have occurred regularly in recent years. Ultimately, the fact that Deribit employs these types of strategies shows a level of vision and dedication that customers should look for in their crypto services providers.
This feature is helpful for crypto traders who want to develop their own trading bots and algorithms. Deribit APIs comes with a lot of scope for developers. It has REST API and a Websocket API. The REST API has both private and public parts.
If users want to develop something using the market data, you can leverage the public API. Or, if you want to leverage the private API, it should be signed with your API key.
You can acquire your API key under your user account in the API tab. You must keep your API key safely because it’s the only way to recover your API keys if ever it gets lost.
Customer Support Team
Reachable by support ticket or email, Deribit’s dedicated team of customer service professionals ensures that the service is always accessible to all its users. Users can get minute-to-minute assistance through the ticket feature or by logging into the service’s telegram chat, or email about technical problems.
Most of the issues you may run into can be solved by simply checking Deribit’s website, where they store a wealth of information about the service and crypto in general. After you finish reading this Deribit review, if you’re interested in using the service, visit their FAQ page to learn more about what their platform is capable of. You can also reach out to some legit Deribit Telegram groups.
Opening a Deribit Account
Deribit offers two kinds of accounts: Individual and Corporate.
Crypto traders can sign up using a standard identification verification process that only takes a couple of minutes to complete and will allow full access to the trading platform’s features and products.
Corporate account users are needed to undergo a more elaborate Know-Your-Customer (KYC) procedure to comply with the company’s AML / KYC rules.
PROS & CONS
- Leading cryptocurrency options trading platform – the crypto derivative exchange has established itself as the go-to venue for Bitcoin options and Ethereum options, owning more than 85% of the Bitcoin options market share.
- Supports BTC futures, perpetuals and options – while many prominent crypto exchanges offer futures contracts, Deribit also offers perpetual swaps and options aside from future contracts.
- Very sophisticated trading experience – Deribit is a market leader as a crypto derivatives exchange with very low latency or time between a user executing a trade and the exchange’s response to settle the transaction.
- User-friendly – Deribit provides recent trade information, volatility, and Delta to crypto traders and investors, which makes the platform particularly user-friendly.
- Not accessible to US traders – Unfortunately, Deribit is not licensed to operated in the United States and doesn’t allow US users as of now.
- Operates as an unregulated exchange platform – the company is not regulated. Meaning, it could possibly run into regulatory problems in the futures.
- Withdrawals from Deribit may take some time to be processed – the reason is due to the fact that only 1% of user funds are stores in hot wallets, the rest 99% of user funds are stored in cold wallets for additional security. Make sure you input the correct wallet address when withdrawing!
- Only supports Bitcoin deposits – Deribit account users can only fund their accounts with BTC.
- It does not have fiat support – such as US Dollars (USD).
Deribit Exchange Review for Australia
Do you want to start trading crypto real-time with relatively low fees? Then Deribit is for you!
Deribit is one of the leading crypto options and futures exchange that allows cryptocurrency traders to execute derivatives trading strategies for Bitcoin and Ethereum.
The platform has established itself as the go-to Bitcoin options crypto trading platform with the biggest open interest and trading volumes in the market, resulting in more than 85% market share of the Bitcoin options market.
The company was originally established in the Netherlands back in 2016. But currently, they are now headquartered in Panama. Deribit was one of the first Bitcoin options trading platforms in the crypto space and has since become the biggest Bitcoin options exchange by open interest and volume.
Even though the Deribit has built a dedicated Bitcoin derivatives trading platform, Deribit added support for Ethereum (ETH) in 2019. This enables users to trade all of the exchange’s derivatives contracts for both Bitcoin and Ethereum.
Deribit is one of the most advanced cryptocurrency derivatives offerings in the crypto market. But it still hasn’t established itself as a regulated exchange platform. While it is not mandated to do so, the fast-changing regulatory landscape might be a concern for Deribit users in the future.
For more trading platforms you can use in Australia, have a look at our list of the best Australian platforms to trade cryptocurrencies.
Deribit Exchange Review for Canada
Unfortunately, Canadians in Ontario are not allowed to register for a Deribit account. But it looks like other regions of Canada are fine.
Crypto traders and investors from Cuba, Virgin Islands (USA), Syrian Arab Republic, Sudan, Samoa, Puerto Rico, Panama, Democratic People’s Republic of Korea, Japan, Iraq, Iran, and Guam are also not allowed to apply.
If you really want to trade or invest in cryptocurrencies, we highly suggest you try other well-known and regulated crypto exchange platforms such as:
Deribit Exchange Review for UK
Deribit is one of the leading crypto exchange platforms (even in crypto-friendly European countries such as UK) that allows cryptocurrency traders to execute derivatives trading strategies for Bitcoin and Ethereum.
Deribit has established itself as the go-to BTC options crypto exchange with the largest trading volumes and open interest in the crypto space, resulting in more than 85% market share in the Bitcoin options market.
Deribit (originally called as Deribit D.V.) was originally established in the Netherlands back in 2016. But right now, the company is headquartered in Panama. Deribit was one of the first BTC trading options exchange in the crypto world and has since become the most prominent Bitcoin options exchange by volume and open interest.
Even though Deribit has established a dedicated Bitcoin derivatives trading platform, the exchange added support for Ethereum in 2019. This allowed users to trade all of Deribit’s derivatives contracts for both BTC and ETH.
Overall, Deribit is one of the most advanced crypto derivatives offerings in the crypto space. But the company hasn’t established as a regulated crypto platform. While Deribit is not required to do so, the fast-changing regulatory landscape might be a concern for the exchange users in the future.
For a list of UK-based crypto exchanges, here’s our a recently written post about the best cryptocurrency exchange to buy and sell Bitcoin in UK.
Deribit is a versatile and forward-thinking cryptocurrency platform that gives users the power to engage in more advanced forms of trading. By providing an intuitive system and interface, Deribit has made options trading more accessible to regular people, making it possible for people like you to increase their returns.
The trading platform does what it is designed to do very well, but the designed purpose may not appeal to all consumers. Futures and options trading require considerable experience and knowledge, making it inaccessible to most beginners. However, for experienced traders, Deribit offers the opportunity to take your trading game to the next level and start making more money per trade.
Reading this Deribit review has given you everything you need to determine whether this platform meets your needs. While the limited options of supported coins are a downside, the futures and options on offer ensure that you’ll still have plenty to choose from. Deribit’s platform may not allow users to do anything they want, but it is well optimized for what it does, making the service an excellent choice for option or leverage-focused traders.