Deribit

Overview of Deribit

Deribit offers traders various features, including a robust matching engine, low latency, risk management, and liquidity. Founded in 2016 in Panama, Deribit started with BTC trading, expanding to ETH and other currencies. The platform prioritizes integrity, innovation, and quality service. While regulatory clarity is pending, Deribit maintains stringent security measures, securing over 99% of user funds in cold storage and employing a secure facility. With 49 cryptocurrencies available for trading, ranging from BTC to DOGE, Deribit's dynamic trading environment generates a daily volume of $582,594,546. Account setup involves providing basic details and agreeing to terms. Deribit adopts a maker-taker fee model based on products. Deposits and withdrawals support various cryptocurrencies and methods. Comprehensive educational resources, including expert-authored articles and a comprehensive Deribit Options Course, enhance user knowledge. Customer support is accessible through multiple channels. The platform caters to different traders, appealing to professionals, active traders, risk-tolerant individuals, and those seeking educational resources.

Pros and cons

Deribit stands out in various aspects, boasting a lineup of 49 tradable cryptocurrencies and a robust matching engine designed for low latency. Its advanced risk management and liquidity mechanisms not only elevate the trading experience but also come with a plethora of trading choices and order varieties. Rooted in principles of integrity, top-notch service, and innovation, the platform leaves no stone unturned in implementing top-tier security measures, including the utilization of cold storage solutions. Furthermore, traders benefit from a diverse array of educational resources provided by the platform. However, it's worth noting that potential drawbacks encompass the absence of confirmed regulatory oversight, the lack of specific cryptocurrency incentives, and the omission of anonymous trading options. Prospective users should also factor in the possibility of withdrawal delays and associated fees, with certain products carrying relatively higher charges. While the platform places a strong emphasis on cryptocurrencies, it doesn't appear to facilitate fiat currency trading as highlighted in the case of Coinbase.

Regulatory Authority

Deribit currently operates without confirmed regulation. It's essential to approach with caution due to the lack of established regulatory supervision.

Security

At the forefront of security, Deribit employs rigorous measures. With over 99% of user funds kept in cold storage, vulnerability to hacking is minimized. Servers are stationed in the secure Equinix LD4 facility, under 24/7 surveillance, fortified against physical threats, and bolstered by redundancy. A multi-signature cold wallet system, distributed across vaults, adds another layer of protection. Stricter access protocols and multi-signature keys govern the cold storage. Account security is fortified through distinct passwords, Two-Factor Authentication (2FA) via apps or YubiKey, IP whitelisting, secure session settings, and vigilance against phishing attacks. Encouraging users to activate 2FA, ensure secure connections, adopt robust passwords, and evade common pitfalls maintains a fortified security posture.

Cryptocurrencies available

In terms of variety, Deribit offers trading for an array of 49 cryptocurrencies, including major options such as

• BTC,

• ETH,

• DOGE,

• SOL,

• MATIC,

• BCH,

• ADA,

• DOT,

• LTC,

• XRP,

• ALGO,

• UNI.

When it comes to new additions, Deribit ensures a swift coin listing speed, enabling users to promptly access emerging assets.

The platform's price spectrum spans from BTC, valued around $29,350.2, to DOGE, which hovers at approximately $0.07477.

Market capitalizations differ among cryptocurrencies, with tiers represented by BTC, DOGE, and MATIC.

Deribit's vibrant trading environment boasts substantial trading volumes for notable coins like BTC, ETH, DOGE, SOL, and ADA, collectively contributing to a daily trading volume of $582,594,546.

How to open an account？

To open a Deribit account:

1. Visit the Deribit website and click “Create account.”

2. Provide your email address.

3. Choose a username with at least 5 characters, comprising letters and numbers only.

4. Set a password of 12 characters or more, including a digit, uppercase letter, and symbol.

5. Confirm the password.

6. Select your country of residence.

7. Agree to the Terms of Service and Privacy Policy.

8. Click “Register.”

Fees

Deribit employs a maker-taker fee structure, featuring fees that vary based on the product and are a percentage of the contract's underlying asset. Maker orders for BTC Weekly Futures and ETH Weekly Futures incur a -0.01% fee, while taker orders have a 0.05% fee. BTC and ETH Futures & Perpetual orders have a 0.00% maker fee and a 0.05% taker fee. USDC Perpetuals come with a 0% maker fee and a 0.05% taker fee. Both maker and taker orders for BTC and ETH Options bear a 0.03% fee of the underlying or 0.0003 BTC/ETH per options contract. Deribit offers a 100% fee reduction for the second leg of Option Combos involving buy and sell trades, and a 50% discount on the lowest taker leg for Futures Spreads/Futures Combos. Liquidation fees for Futures & Perpetuals are 0.75% for BTC/ETH and 0.90% for ETH/ETH, and Options have liquidation fees of 0.19% of the underlying asset or 0.0019 BTC/ETH per options contract.

Deposit & Withdrawal

Deribit streamlines deposits and withdrawals via Bitcoin (native blockchain), Ethereum (native blockchain), Solana (native blockchain), and USDC (ERC20 deposits). Successful KYC verification is necessary to obtain a deposit address. Bitcoin deposits entail no fees and need one network confirmation. Instant withdrawals are feasible based on hot wallet balance availability, while occasional delays may occur due to limited hot storage. Withdrawal and deposit fees vary with network conditions, with deposits incurring no fees.

Educational Resources

At Deribit, a plethora of educational resources await to enhance your grasp of derivatives trading. Authored by experts, articles span diverse subjects like Trading Volatility, Futures Spreads Liquidity, Deribit Price Ladder, IV Rank and IV Percentile, Hedging with Derivatives, and Initiating with Deribit Options, among others.

Furthermore, the Deribit Options Course unfolds an all-encompassing learning journey. This complimentary course entails 97 lectures paired with quizzes, delivering over 8 hours of video and text-based content. Across 13 comprehensive sections, it explores Cryptocurrency Options, Option Definitions, Call and Put Option Basics, Cryptocurrency Call and Put Option Fundamentals, Volatility, Delta, Theta, Vega, Gamma, and Strategies and Combinations.

Customer Support

Deribit offers customer support through various channels, including email (info@deribit.com), Twitter, and Telegram in English, Chinese, and Russian languages. They also provide a Live Chat feature accessible via their exchange platform. Additionally, Deribit offers support through Telegram Groups for direct assistance in multiple languages.

Compare to Other Brokers

Deribit presents a choice of 49 cryptocurrencies, featuring Maker fees at -0.01% and Taker fees at 0.05%. Binance boasts a vast array of 500+ cryptocurrencies, coupled with Maker fees of 0.04% and Taker fees of 0.075%. Meanwhile, Kraken offers 50+ cryptocurrencies and charges Maker fees of 0.1%, along with Taker fees of 0.26%. BitMEX hosts 100+ cryptocurrencies, with Maker fees set at 0.0007% and Taker fees at 0.002%. All platforms uphold no account minimums. Deribit rewards tasks with up to 100 USD, Binance incentivizes deposits with up to 500 USD, Kraken offers tasks-related rewards of up to 50 USD, and BitMEX grants up to 100 USD for deposits.

Is Deribit a Good Exchange for You？

Deribit accommodates a wide array of traders through its versatile features. Professional traders leverage its robust matching engine, low latency, and advanced risk management for effective strategy execution. Active traders find an agile platform with diverse order types and comprehensive charting tools for both futures and options markets. Risk-tolerant traders benefit from high leverage and liquidation mechanisms. Those seeking education can access resources like the Deribit Options Course, while community-oriented traders participate in Telegram support groups and community-driven content. Deribit's diverse offerings cater to various trading styles and preferences.

User Reviews

User 1:

“Deribit has been my go-to crypto exchange for a while now. Security is on point – 2FA and cold storage keep my funds safe. The interface is clean and user-friendly, even for a newbie like me. Customer support through Telegram is quick and helpful. Liquidity is usually good, especially on major pairs. Trading fees are reasonable, not eating into profits. Plus, their privacy measures put me at ease. Withdrawals are smooth and don't take forever. Only gripe？ More altcoins would be cool.”

User 2:

“I've been trading on Deribit for a bit, and I'm loving it. The exchange is solid – you can tell they've put effort into stability. The wide range of order types caters to all my strategies. And the liquidity, wow! I can enter and exit positions without a hitch. They offer a bunch of cryptocurrencies, and the deposit/withdrawal speed is pretty swift. I appreciate their commitment to security and data protection. The trading fees are reasonable, and the customer support is responsive. Overall, a top-notch exchange for serious traders.”

Conclusion

Deribit, catering to cryptocurrency derivatives trading, exhibits both merits and drawbacks. The platform boasts a diverse cryptocurrency selection, coupled with a robust trading infrastructure, including a potent matching engine and efficient risk controls. Educational resources like the Deribit Options Course further enrich traders' knowledge. However, the absence of confirmed regulatory oversight presents a concern, potentially impacting its risk profile. While security measures like cold storage and multi-signature wallets are in place, the regulatory gap casts a shadow on the platform's overall security. Traders are advised to tread carefully, ensuring comprehensive research prior to involvement.

FAQs

Q: How does Deribit determine leverage？

A: Leverage depends on your account's equity, utilizing cross-margin auto leverage. To achieve 10x leverage with a 1 BTC position, you need 0.1 BTC. Subaccounts enable margin isolation for specific trades.

Q: Can I deposit fiat like USD or EUR？

A: Deribit accepts BTC, ETH, and USDC deposits. Find BTC and ETH deposit addresses under Account > Deposit. For fiat-crypto transactions, use exchanges like Kraken.com or Bitstamp.net.

Q: Can deposit/withdrawal speed be expedited？

A: Due to Bitcoin network congestion, transactions face delays. We can't accelerate or prioritize them. Try BTC.com transaction accelerator for quicker processing.

Q: How do I inquire about security settings？

A: Email security-related queries to info@deribit.com for assistance.

Q: Is Deribit operational 24/7？

A: Yes, Deribit operates continuously, barring system updates or disruptions.

Q: What's the minimum order size？

A: Presently, the minimum order size stands at 0.1 BTC or 1 ETH.

Risk Warning

Online trading involves significant risk, and you may lose all of your invested capital. It is not suitable for all traders or investors. Please ensure that you understand the risks involved and note that the information contained in this article is for general information purposes only.