Home > How to Trade Crypto Futures: A Comprehensive Beginner’s Guide > How to Trade Crypto Futures: A Comprehensive Beginner’s Guide
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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.
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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 5/5 |
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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.
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.
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.
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:
2. Sign Up:
3. Verify Your Email:
Verification Process:
For enhanced security and to gain access to higher withdrawal limits, complete the KYC (Know Your Customer) process:
Security Measures:
Referral Program and Bonus:
By following these steps, you can create a Deribit account and start exploring crypto futures trading.
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:
Key Information:
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:
Key Information:
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.
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:
Next, you need to enter the transfer details:
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.
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:
Disadvantages:
ETH Futures:
ETH’s future focus is on Ethereum prices, the second-largest cryptocurrency. Ethereum offers unique dynamics and opportunities.
Advantages:
Disadvantages:
Examples of Deribit Futures Contracts:
Your decision to trade BTC or ETH futures should align with your market forecasts, trading strategy, and risk tolerance.
Factors to Consider:
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.
Understanding the Deribit futures trading interface is critical to effective trading. The main elements include the chart, order book, and position panel.
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.
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:
Placing Orders:
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.
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.
The calculator will provide you with:
Scenario 1: You want to buy 5 BTC contracts at $30,000 with 10x leverage.
Scenario 2: You plan to short 3 ETH contracts at $2,000 without leverage.
This tool assists in making informed decisions by providing critical financial metrics effortlessly.
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:
Benefits:
Risks:
Tips and Best Practices:
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.
This section addresses some key questions to help you start trading futures on Deribit, understand the requirements, and explore risk management features.
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.
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.
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.
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.
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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.
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