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Deribit Futures Trading Tutorial: Step-by-Step Beginner’s Guide

Written by Larry Jones

Written by:

Larry Jones

Hi, I'm Larry Jones, an Financial Management graduate from Franklin University, where I focused on Finance. With a deep passion for trading and investing, I've immersed myself in the dynamic world of financial markets. Currently, I dedicate my time to trading while also educating others about the exciting opportunities in cryptocurrencies. Through my experience and expertise, I aim to make complex financial concepts accessible to everyone. Whether you're a seasoned trader or new to the world of investing, my goal is to provide you with valuable insights and practical knowledge to help you navigate the world of cryptocurrencies with confidence.

Expert reviewed

Expert Reviewed

This article has been reviewed by crypto market experts at SCM to ensure all the content, sources, and claims adhere to the highest standards of accuracy and reliability.

Last Updated on January 24, 2025

  • Launched in 2016 and headquartered in Amsterdam, Deribit has rapidly gained a solid reputation in cryptocurrency trading.

    As a leading crypto exchange and Web3 company, Deribit boasts over 100,000 active users and an impressive average daily trading volume of over $1 billion.

    It’s respected for its user-friendly interface and robust security measures.

    Deribit offers a competitive edge in the futures trading market with its low fees and high-leverage options, attracting novice and experienced traders.

    Whether you’re trading Bitcoin, Ethereum, or other cryptocurrencies, Deribit provides various contract options to help you navigate the volatile crypto market effectively.

    The exchange’s advanced features and tools make it an ideal platform to explore and master futures trading.

    In this tutorial, you’ll learn how to set up your Deribit account, understand futures contracts, and execute your first crypto futures trade with confidence.

    By the end, you’ll be well-equipped to take advantage of the numerous benefits Deribit offers, maximizing your potential in the dynamic world of crypto futures trading.

    Our 2025's Recommendation

    • Upto 20x Leverage for BTC & ETH

    •  Supports over 10+ crypto trading pairs

    • 0.05% & 0.02% as taker/maker fees

    • Robust security measures

    How to Trade Crypto Futures on Deribit: Deribit Futures Trading Strategy & Basics

    Leverage allows you to control significant positions with relatively little capital. Using leverage can amplify your profits, but it also increases the risk of losses.

    Margin is the collateral you need to open and maintain positions.

    There are two main types: initial margin, the amount required to open a position, and maintenance margin, the minimum amount needed to keep the position open.

    Example of Leverage and Margin Use

    Leverage Initial Margin Maintenance Margin
    10x $100 $50
    20x $50 $25

    Liquidation happens if your margin balance falls below the maintenance margin threshold. At this point, your position is automatically closed to prevent further losses.

    Margin Modes

    • Cross Margin Mode: Uses the entire balance in your account to prevent liquidation. This mode spreads risk across your entire margin balance.
    • Isolated Margin Mode: Limits the risk to the margin allocated to a specific position. This mode helps in managing risk more precisely.

    Important Concepts

    • Index Price: Reflects the average market price of the underlying asset across multiple exchanges.
    • Fair Price: Used to calculate Unrealized PnL (Profit and Loss). It helps prevent unfair liquidations.
    • Funding Rate: A periodic payment exchange between buyers and sellers, ensuring the contract price aligns with the index price.

    Recommendation: Use the Deribit order calculator to estimate profits and losses before executing trades. This tool helps you understand potential outcomes and manage risks effectively.

     

    How to Create an Account on Deribit

    To create an account on Deribit, follow these steps whether you are using the website or the app:

    1. Visit the Deribit Website or Download the App:

    • Website: Go to deribit.com.
    • App: Download the Deribit app from the App Store or Google Play Store.

    2. Sign Up:

    • Click on the “Sign Up” button.
    • Fill in your email address, create a username, and set a strong password.
    • Accept the terms and conditions by checking the necessary boxes.
    • Click on “Create Account.”

     

    create account deribit

     

    3. Verify Your Email:

    • Check your email for a verification message from Deribit.
    • Click on the verification link in the email.
    • Once verified, you can log in to your new account.

    Verification Process:
    For enhanced security and to gain access to higher withdrawal limits, complete the KYC (Know Your Customer) process:

    • Go to the “Settings” or “Profile” section.
    • Upload a government-issued ID.
    • Provide proof of residence, such as a utility bill.
    • Wait for approval, which usually takes 24-72 hours.

    Security Measures:

    • Enable Two-Factor Authentication (2FA):
      • Go to the “Security” section.
      • Follow the prompts to set up 2FA using an authenticator app.
    • Use a robust and unique password.
    • Enable withdrawal allowlist to restrict withdrawals to known addresses.

    Referral Program and Bonus:

    • Share your unique referral link with others.
    • Earn a percentage of their trading fees as a bonus.
    • New users signing up with a referral link can enjoy fee discounts or other promotional bonuses.

    By following these steps, you can create a Deribit account and start exploring crypto futures trading.

     

    How to Deposit and Withdraw Funds on Deribit

    To deposit funds on Deribit, navigate to the “Account” section in the main menu. Click on “Deposit” and select the cryptocurrency you want to deposit, such as Bitcoin (BTC) or Ethereum (ETH). You’ll be given a wallet address to transfer your funds.

    Supported Payment Methods:

    • Crypto: BTC, ETH
    • Fiat: Not supported directly

    Key Information:

    • Minimum Deposit: No minimum limit
    • Maximum Deposit: No limit
    • Fees: No deposit fees
    • Processing Time: Typically within minutes, depending on network congestion

    To withdraw funds, go to the “Account” section and click “Withdraw”. Select your preferred cryptocurrency and enter the destination address and the amount you wish to withdraw. Confirm the details and complete the process.

    Supported Payment Methods:

    • Crypto: BTC, ETH

    Key Information:

    • Minimum Withdrawal:
      • BTC: 0.01 BTC
      • ETH: 0.1 ETH
    • Maximum Withdrawal: Depends on available balance and pending withdrawals
    • Fees:
      • BTC: 0.0005 BTC per withdrawal
      • ETH: 0.01 ETH per withdrawal
    • Processing Time: Typically within minutes but can vary with network conditions

    Withdrawals may require additional security verification, such as 2FA or email confirmation, ensuring an extra layer of security for your transactions.

    Always double-check your wallet address before confirming transactions to avoid potential losses.

     

    How to Transfer Funds to the Futures Wallet

    On Deribit, you have two types of wallets: the main wallet and the futures wallet.

    The primary wallet holds your cryptocurrencies, such as BTC and ETH, and acts like a regular exchange wallet. The futures wallet is specifically for trading futures contracts.

    First, ensure you are logged in to your Deribit account. Here are the steps to transfer funds from your main wallet to your futures wallet:

    1. Navigate to the wallet section in your account dashboard.
    2. Select the cryptocurrency you wish to transfer (e.g., BTC, ETH).
    3. Click on the Transfer button.

    Next, you need to enter the transfer details:

    • Specify the amount you want to transfer.
    • Confirm the transfer by selecting the destination wallet (futures wallet).

    Deribit supports a range of currencies, primarily BTC and ETH, for future trading.

    The platform usually requires a minimum amount to ensure smooth transaction processing. Before transferring, check the current minimum and maximum limits on the Deribit website.

    Make sure your main wallet has sufficient funds to cover the desired transfer amount and to confirm the transaction, follow the prompts provided. The straightforward process ensures that your funds are ready to engage in future trading.

     

    How to Choose Between BTC and ETH Futures

    Choosing between BTC and ETH futures on Deribit involves understanding key differences, advantages, and disadvantages.

    BTC Futures:

    BTC futures are contracts based on Bitcoin prices. They are popular due to Bitcoin’s high market cap and liquidity.

    Advantages:

    • Liquidity: Greater trading volume and lower spreads.
    • Market Influence: Bitcoin often leads to market trends.

    Disadvantages:

    • Volatility: Price swings can be significant.
    • Higher Margin Requirements: Larger capital needed to open positions.

    ETH Futures:

    ETH’s future focus is on Ethereum prices, the second-largest cryptocurrency. Ethereum offers unique dynamics and opportunities.

    Advantages:

    • Project Growth: Ethereum’s evolving ecosystem (DeFi, NFTs).
    • Volatility: Potential for significant gains from price changes.

    Disadvantages:

    • Liquidity: Slightly lower than Bitcoin.
    • Market Sensitivity: More sensitive to market news and updates.

    Examples of Deribit Futures Contracts:

    • BTC-27JUN24: Bitcoin futures contract expiring on June 27, 2024.
    • ETH-27JUN24: Ethereum futures contract expiring on the same date.

    Your decision to trade BTC or ETH futures should align with your market forecasts, trading strategy, and risk tolerance.

    Factors to Consider:

    • Market Research: Analyze current trends and news.
    • Risk Tolerance: Assess your comfort with volatility.
    • Capital: Determine your available capital for margin requirements.

    Choosing between BTC and ETH futures on Deribit isn’t just about preference; it’s about strategy, market conditions, and aligning your investment goals with the characteristics of each cryptocurrency.

     

    How to Understand the Futures Trading Interface on Deribit

    deribit ui

     

    Understanding the Deribit futures trading interface is critical to effective trading. The main elements include the chart, order book, and position panel.

    • Chart: The chart provides real-time data on price movements. Use various tools to analyze trends and patterns. You can apply technical indicators like moving averages and Bollinger Bands.
    • Order Book: The order book displays current buy and sell orders. It helps you gauge market depth and liquidity. Pay attention to the spread and the difference between the highest bid and lowest ask.
    • Order Panel: In the order panel, you place orders. Select order types such as market, limit, or stop. Enter the quantity and price at which you wish to trade. Confirm details before executing your trade.
    • Position Panel: The position panel shows your current open positions. It includes contract size, entry price, and unrealized profit or loss. Monitor this section to manage your trades effectively.

    Deribit offers customization options to tailor the interface to your preferences. Adjust layouts, colors, and data displays. Use trading tools like alerts and advanced charting to enhance your analysis.

    Navigating these components with ease helps you make informed trading decisions on Deribit.

     

    How to Place and Manage Orders on Deribit Futures

    To start, you must choose a trading pair, a contract type, and a leverage level.

    For example, if you opt for the BTC/USDC pair, you can decide between perpetual and fixed-term contracts. Adjust the leverage according to your risk tolerance, ranging from 1x to 100x.

    Order Types:

    • Limit Orders: Specify the price you want to buy or sell. The order executes only at that price or better.
    • Market Orders: Execute immediately at the current market price, ensuring execution, not price.
    • Stop Orders: Trigger a market or limit order once the price reaches a specified level.

    Placing Orders:

    1. Navigate to the trading interface.
    2. Select BTC/USDC as your pair.
    3. Choose the order type (limit, market, or stop).
    4. For a limit order, enter your desired price and amount.
    5. Click Buy or Sell to place the order.

    Leverage and Margin System:

    Leverage allows you to trade more prominent positions than your account balance. For example, with 10x leverage, a $1,000 deposit controls $10,000 worth of contracts. Ensure you maintain the required margin to avoid liquidation.

    Managing and Closing Positions:

    Monitor your open positions on the “Positions” tab. To adjust your position, you can place additional orders. Close your position by placing an order in the opposite direction.

    Funding Rate and Settlement Mechanism:

    The funding rate ensures perpetual contracts’ prices converge with the spot price. If it’s positive, longs pay shorts, and vice versa. Fixed-term contracts settle at expiry, with profits and losses realized then.

    Use these tools and strategies to navigate Deribit futures with confidence and precision.

     

    How to Use the Deribit Order Calculator

    The Deribit order calculator is a valuable tool for managing your future positions effectively. Before entering a trade, it helps you calculate potential profits, fees, margin requirements, and liquidation risk.

    To access the Deribit order calculator, navigate to the Deribit platform and locate the calculator tool within the trading interface.

    Steps to Use the Calculator

    1. Select Your Contract: Choose the futures contract you wish to analyze.
    2. Enter Order Details: Fill in your order’s price, quantity, and leverage.
    3. Calculate Parameters: Based on your input, the calculator will display potential profits, required margin, and liquidation price.

    Understanding the Outputs

    The calculator will provide you with:

    • Potential Profits: Shows anticipated gains or losses if the trade goes as planned.
    • Fees: Lists the trading fees associated with the position.
    • Margin Requirements: Indicates the initial and maintenance margins needed.
    • Liquidation Price: The price at which your position will be liquidated to prevent further losses.

    Example Scenarios

    Scenario 1: You want to buy 5 BTC contracts at $30,000 with 10x leverage.

    • Input: Price = $30,000, Quantity = 5, Leverage = 10x
    • Results: The calculator will show the required margin and the potential profits if BTC reaches $33,000.

    Scenario 2: You plan to short 3 ETH contracts at $2,000 without leverage.

    • Input: Price = $2,000, Quantity = 3, Leverage = 1x
    • Results: It will display the margin requirements and potential losses if ETH rises to $2,500.

    This tool assists in making informed decisions by providing critical financial metrics effortlessly.

     

    How to Use the Deribit Volatility Futures

    Deribit introduces volatility futures, a groundbreaking way to trade Bitcoin volatility without the complexities of traditional options trading. This unique instrument allows you to bet on the future volatility of Bitcoin.

    To access Deribit volatility futures:

    1. Log in to your Deribit account.
    2. Navigate to the Futures section in the main menu.
    3. Select Volatility Futures from the available options.

    Benefits:

    • Hedge against volatility: Protect your portfolio from unpredictable market swings.
    • Speculate market movements: Profit from your predictions on market volatility.
    • Leverage: Use leverage to maximize your gains with a smaller capital investment.

    Risks:

    • High volatility: This can result in significant losses if the market moves against your position.
    • Leverage: While it can amplify gains, it can also amplify losses.
    • Complexity: Understanding and predicting volatility requires more advanced knowledge.

    Tips and Best Practices:

    • Conduct thorough research: Stay informed about market trends and news that can impact Bitcoin volatility.
    • Use stop-loss orders: Limit potential losses by setting predefined exit points.
    • Diversify strategies: Combine volatility futures with other trading strategies to spread risk.
    • Start small: Begin with a more minor position to get comfortable with volatility futures before committing more significant amounts.

    Trading volatility futures on Deribit can be a strategic addition to your trading arsenal, offering the potential for significant rewards while also posing notable risks.

     

    Frequently Asked Questions

    This section addresses some key questions to help you start trading futures on Deribit, understand the requirements, and explore risk management features.

    How can beginners start trading futures on Deribit?

    To start trading on Deribit, visit the Deribit Help Center and browse the available trading guides. There are tutorials suitable for both beginners and advanced traders. Engage with community forums to get valuable tips and insights from other traders.

    What are the requirements for trading futures with Deribit if you are a non-US resident?

    Non-US residents must complete a registration process including verifying your identity to comply with regulatory requirements. Ensure you have a secure and verified account before you can start trading. Deribit does not allow US residents to trade on its platform.

    Does Deribit provide any risk management features for crypto futures trading?

    Yes, Deribit offers several risk management tools. You can use advanced order types such as stop-loss and take-profit orders to manage your risk. Additionally, the platform supports API integration for automated trading strategies, helping you maintain better control over your trades.

    Conclusion

    Deribit provides a robust platform for trading futures, offering features like leverage up to 1:20 and various contracts, including perpetual and regular futures.

    To start, create an account and navigate to the futures section to explore available trading pairs.

    For practical learning, refer to resources such as:

    Engage with these materials to enhance your trading skills and make informed decisions on Deribit’s future trading.

    Browse Other Useful Guides

    About the Authors

    Hi, I'm Larry Jones, an Financial Management graduate from Franklin University, where I focused on Finance. With a deep passion for trading and investing, I've immersed myself in the dynamic world of financial markets. Currently, I dedicate my time to trading while also educating others about the exciting opportunities in cryptocurrencies. Through my experience and expertise, I aim to make complex financial concepts accessible to everyone. Whether you're a seasoned trader or new to the world of investing, my goal is to provide you with valuable insights and practical knowledge to help you navigate the world of cryptocurrencies with confidence.