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Deribit Review: Key Features, Safety, and Alternatives

Deribit Review: Key Features, Safety, and Alternatives
Updated:
June 10, 2023
By
Liam Langers

Cryptocurrency trading is a lucrative investment opportunity that has become increasingly popular in recent years.

One of the platforms that has made a name for itself in this space is Deribit.

In this article, we'll give you an in-depth introduction to Deribit, providing you with a comprehensive overview of its key features, countries supported, liquidity, leverage, customer support, safety, customer reviews, and more.

We'll also go over the unique features that set Deribit apart from other platforms and help you understand why it's such a popular choice among traders.

To help you make an informed decision, we'll also discuss the pros and cons of using Deribit, how to get started with it, and a list of some of the best alternatives available.

By the end of this article, you'll be able to determine whether Deribit is the right platform for your needs and whether it's worth considering as part of your investment portfolio.

What is Deribit?

Deribit is a digital platform that specializes in futures and options trading for cryptocurrencies. It was founded in 2016 in Amsterdam, Netherlands.

However, they want to move their headquarters to Dubai. Deribit offers a comprehensive suite of products for traders, including futures contracts for cryptocurrencies such as Bitcoin, as well as options trading for several other cryptocurrencies.

With a focus on providing a secure, fast and user-friendly platform, Deribit has become a popular choice among experienced traders looking to manage their cryptocurrency portfolio.

The platform offers advanced trading tools, low fees, and an intuitive user interface, making it accessible to both novice and professional traders alike.

Important information about Deribit

Important Information

Countries

Deribit is available to users in most countries around the world, with the exception of a few countries that have restricted access to cryptocurrency trading.

These include the United States, Canada, and Japan.

If you are unsure whether you can use Deribit in your country, it is best to check with the platform or consult your local laws and regulations.

Ease of Use and User Experience

Deribit has a user-friendly interface that is easy to navigate, even for those new to cryptocurrency trading.

The platform offers both a web-based platform and a mobile app, allowing users to trade on the go.

The platform also offers a variety of tools and features to help users make informed trading decisions, such as real-time charts and market data, price alerts, and more.

Liquidity and Matching Engines

Deribit has high liquidity, which means that there are always a large number of buyers and sellers on the platform, making it easy to buy and sell digital assets.

The platform also has advanced matching engines that can process trades quickly and efficiently, even during times of high market volatility.

Available Assets

Deribit offers trading in a wide range of digital assets, including Bitcoin, Ethereum, and other major cryptocurrencies.

The platform also offers futures and options trading in these assets, allowing users to take long or short positions or to hedge their positions against market risk.

Can You Use Leverage?

Deribit allows users to trade with leverage, which means that they can borrow funds from the platform to trade larger positions.

Leverage can be a useful tool for experienced traders, but it can also increase the risk of losses if the market moves against them.

It is important to carefully consider the risks of trading with leverage before using this feature on Deribit.

Security

Deribit takes security very seriously and has implemented several measures to protect the platform and its users.

These measures include cold storage for digital assets, two-factor authentication, and regular audits and testing of the platform's security systems.

Deribit also has a bug bounty program, which rewards users for reporting security vulnerabilities on the platform.

Reputation

Deribit has a good reputation in the cryptocurrency community and is generally considered a reliable and trustworthy platform.

The platform has a long track record of operation and has not experienced any major security breaches or other significant issues.

Trading Fees

Deribit charges trading fees for each trade made on the platform.

These fees are based on the size of the trade and the asset being traded.

Deribit also charges fees for funding and withdrawal of assets from the platform.

It is important to consider these fees when trading on Deribit to ensure that you are getting a good value for your trades.

Customer Support

Deribit's customer support team is known for being responsive and helpful to users.

The team can be reached through a variety of channels, including email, live chat, and social media.

Users can also access the platform's knowledge base and FAQ section for answers to common questions and issues.

In addition to its customer support team, Deribit also has a community forum where users can ask questions and get help from other members of the community.

This can be a helpful resource for users who have more specific or technical questions about the platform.

Overall, users generally report having positive experiences with Deribit's customer support.

The team is generally praised for being knowledgeable and efficient in helping users resolve any issues they may have.

Unique features of Deribit

Unique Features

Deribit offers a number of unique features that set it apart from other cryptocurrency exchanges.

These features include:

Futures and Options Trading

Deribit is one of the few exchanges that offers both futures and options trading in a variety of digital assets.

Futures contracts allow users to take a long or short position on an asset, while options contracts give users the right, but not the obligation, to buy or sell an asset at a predetermined price.

These types of trades can be useful for hedging against market risk or for taking advantage of market movements.

High Leverage

Deribit allows users to trade with high leverage, which can be a useful tool for experienced traders.

Leverage allows users to borrow funds from the platform to trade larger positions, which can potentially increase their profits.

However, it is important to carefully consider the risks of trading with leverage, as it can also increase the risk of losses if the market moves against the trader.

Advanced Order Types

Deribit offers a variety of advanced order types that can help users manage their risk and optimize their trades.

These order types include stop-loss orders, which automatically close a trade when the market reaches a certain price, and trailing stop-loss orders, which adjust the stop-loss price as the market moves in favor of the trade.

Deribit also offers other order types, such as market orders, limit orders, and more.

Deribit API

The platform offers a comprehensive API that allows users to build custom trading tools and integrate with other platforms.

This can be a useful resource for developers and advanced traders who want to automate their trades or create custom solutions.

The API offers a range of features, including the ability to place trades, access market data, and more.

Is Deribit Safe?

Deribit is generally considered a safe and reliable platform for cryptocurrency trading.

The platform has a long track record of operation and has not experienced any major security breaches or other significant issues.

Deribit takes security very seriously and has implemented several measures to protect the platform and its users.

These measures include cold storage for digital assets, two-factor authentication, and regular audits and testing of the platform's security systems.

Deribit also has a bug bounty program, which rewards users for reporting security vulnerabilities on the platform.

It is important to note that, like any other cryptocurrency exchange, Deribit carries some level of risk.

The cryptocurrency market is highly volatile and can experience significant price swings in a short period of time.

It is important to carefully consider the risks of trading on Deribit and to only invest what you can afford to lose.

Customer reviews of Deribit

Customer Reviews

Overall, users of Deribit have generally positive things to say about the platform.

Many users praise the platform's user-friendly interface and advanced trading features, such as futures and options trading and advanced order types.

Some users also appreciate the platform's high liquidity and fast matching engines, which allow them to trade quickly and efficiently.

Others appreciate the platform's customer support team, which is generally considered knowledgeable and helpful.

One user commented on the platform's security measures, saying, "I feel confident using Deribit because of the security measures they have in place. They have cold storage for digital assets, two-factor authentication, and regular audits and testing of their security systems. Plus, they have a bug bounty program that rewards users for reporting security vulnerabilities."

Another user praised the platform's customer support, saying, "I've had a few questions about using the platform, and the customer support team has always been quick to respond and helpful in answering my questions. They've even helped me troubleshoot some issues I was having with my account."

Pros and Cons

Pros:

  • Wide range of digital assets available for trading
  • Futures and options trading available
  • High liquidity and fast-matching engines
  • User-friendly interface and mobile app
  • Advanced trading tools and features, such as advanced order types and the Deribit API
  • Good reputation and track record of operation
  • Comprehensive security measures in place
  • Responsive and helpful customer support team
  • Low trading fees compared to the majority of platforms

Cons:

  • Not available in all countries
  • Trading with leverage can increase risk
  • Some users may find the platform's interface too complex or overwhelming

How to Get Started (in Steps)

If you're interested in using Deribit, follow these steps to get started:

  1. Sign up for an account on the Deribit website. This will require you to provide some personal information and create a username and password.
  2. Verify your account by providing the necessary identification documents. This may include a copy of your government-issued ID or passport, and proof of residence.
  3. Fund your account by depositing cryptocurrency or fiat currency. Deribit accepts a variety of deposit methods, including bank transfers, credit card payments, and cryptocurrency transfers.
  4. Once your account is funded, you can begin trading on the platform. You can choose from a wide range of digital assets, including Bitcoin, Ethereum, and other major cryptocurrencies. Deribit offers both spot trading and futures and options trading in these assets.
  5. Use the platform's tools and features to make informed trading decisions. These may include real-time charts, market data, price alerts, and more.
  6. Monitor your trades and manage your risk by using advanced order types, such as stop-loss orders, or by trading with leverage.
  7. Withdraw your profits or funds from the platform when you are ready. Deribit doesn’t charge fees for withdrawals or deposits.
Alternatives to Deribit

Alternatives to Deribit

There are a number of alternatives to Deribit for cryptocurrency trading.

Some popular options include:

Binance

Binance is a well-known cryptocurrency exchange that offers a wide range of trading options, including futures and options trading.

Binance is known for its user-friendly interface and low trading fees. It also has a mobile app, making it accessible to users on-the-go.

However, Binance is not as focused on offering futures and options trading as Deribit, and its platform may not be as sophisticated as Deribit's for these types of trades.

Binance Review

Coinbase

Coinbase is one of the largest and most popular cryptocurrency exchanges in the world. It is known for its ease of use and strong security measures.

Coinbase offers a limited range of futures and options trading options, making it a less robust alternative to Deribit for those who are looking for a more sophisticated platform for these types of trades.

Coinbase Review

Kraken

Kraken is a well-established cryptocurrency exchange that offers a range of trading options, including futures and options trading.

It has a strong reputation for security and is known for offering a wide range of trading options, including futures and options trading.

However, Kraken's platform for these types of trades may not be as sophisticated as Deribit's, and its fees may be higher.

Kraken Review

Bybit

Bybit is a relatively new player in the cryptocurrency exchange space, but it has quickly become a popular choice for traders who are looking for a platform for futures and options trading.

Bybit offers a user-friendly interface and low trading fees. However, its platform for futures and options trading may not be as robust as Deribit's, and its customer support may not be as strong.

Bybit Review

Bitmart

Bitmart is a cryptocurrency exchange that offers a range of trading options, including futures and options trading.

It is known for its user-friendly interface and low trading fees.

However, Bitmart's platform for futures and options trading may not be as sophisticated as Deribit's, and its customer support may not be as strong.

Bitmart Review
Our opinion of Deribit

Conclusion

In conclusion, Deribit is a well-established platform for cryptocurrency derivatives trading.

It offers a wide range of futures and options products with competitive pricing, high liquidity, and a user-friendly interface.

The platform's focus on security and regulatory compliance, combined with its strong track record, makes it a trustworthy choice for traders and investors looking to enter the derivatives market.

Whether you're a seasoned trader or just starting out, Deribit is definitely worth considering as a platform for your trading needs.

So, if you're looking for a platform that offers a comprehensive suite of products, reliable customer support, and a secure trading environment, we highly recommend giving Deribit a try.

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