Deribit was founded in 2016 and based out of the Netherlands. It specializes in the futures and options market and processes thousands of orders per second and hundreds of orders per second from a single account.
FTX, a top cryptocurrency liquidity provider, backed by Alameda Research, which helps FTX access industry-leading order books. It helps the traders to diversify their investments, popularly known as derivatives exchange.
PrimeXBT was founded in 2019 in Seychelles. It has grown exponentially and has clients across the globe. The organization’s vision is to create an innovative platform that offers its clients the essential tools required for their everyday trading activities. ADVFN International Financial Awards awarded PrimeXBT as the 2020 best crypto margin trading award.
They mainly deal with Options and Futures. It offers up to 50x leverage in Ethereum and up to 100x leverage in Bitcoin. You can also practice their trading strategies on the Deribit testnet.
Futures is an agreement to sell or buy BTC or ETH at a predefined price and time in the future. On Deribit, one contract is for 10 USD. Deribit additionally provides perpetual futures that do not have an expiry date. The quarterly futures are on Last Friday of March, June, September, and December.
Deribit offers European style options. They can be exercised only when they expire, Deribit does this automatically. All the cash settlements will take place instead of transferring assets. It also gives you other significant information, such as volatility, delta, and others. You can also view your trade and order history. There are four types of options available: Limit, Market, Stop-Limit, and Stop-Market.
The span for which you want your order to be alive is called “Order Life.” There are three types of order life: Good-Till-Cleared (GTC), Fill-Or-Kill (FOK), or Immediate-Or-Kill (IOC).
If you want total control over your orders, GTC is a great option.
Also, read our comprehensive Deribit Review
FTX : Tradable Products
FTX support perpetual futures on more than 20 cryptocurrencies such as BTC, BNB, LINK, etc. The exchange also offers Index Futures, which allows you to trade various crypto market segments with much more ease. They incorporate large-cap, mid-cap, and small-cap coins. You can likewise trade exchange tokens, regional baskets, and privacy tokens.
These tokens offer you leveraged exposure to the cryptocurrency market without managing a leveraged position.
The platform offers up to 101x leverage and places 10x leverage as default for safety. There are divided into three different categories :
- 1x tokens called as Hedge
- 0.5x Long is known as HALF.
- 3x tokens commonly known as BULL or BEAR. They are ERC20 tokens.
The BEAR and the BULL tokens automatically rebalance themselves to maintain target leverage and prevent liquidations.
MOVE allows you to trade based on the price of a particular cryptocurrency movement by risking a small amount. The movement can be in either direction.
They are futures that expire according to the raw amount of Bitcoin. It can be daily, weekly, monthly, or quarterly. The primary factor is the overall volatility of the Bitcoin over a set duration. This feature attracts a lot of clients to the exchange.
It provides a European style options contract. You have the right to sell an underlying asset at a predetermined date and price, but it is not necessary. You can choose your options contract as either ‘right to buy’ or ‘right to sell.’ You can also set your strike price and expiration time. After entering all the important information for setting up the options contract, you get a quote for FTX to generate a bid or offer the deal within 10 seconds. They are highly customizable.
Also, read our FTX crypto exchange review
PrimeXBT : Tradable Products
PrimeXBT offers indices, cryptocurrency assets Forex, and commodities for trading on its platform.
- Indices: It provides you the world’s most well-known indices to trade, such as FTSE 100, SP 500, DAX 30, ASX 200, and others.
- Cryptocurrencies : It supports five cryptocurrencies. They are Bitcoin, Ethereum, Ripple, Litecoin, and EOS.
- Forex: You can trade major and minor currency pairs. You are charged commissions, otherwise called trading fees.
- Commodities : You can speculate on the costs of commodities like oil, gold, natural gas, etc.
Read our PrimeXBT Review
Deribit : Trading Fees and Charges
It uses a maker-taker model. A “maker” order is used for adding liquidity to the order book and is executed instantly. A “taker” order removes liquidity from the order book and is not completed instantly.
The options fee cannot be higher than 12.5% of the options price.
There is also an extra fee for options and futures delivery. It is 0.015% and 0.025% and for options and futures respectively.
There is an additional fee for liquidation that is added to the insurance fund automatically.
You are not charged for deposits. Only a percentage of funds is present in hot storage while the rest of it is in cold storage. So there is a possibility that the withdrawal cannot be executed immediately. Funds can be transferred from cold storage to hot storage once a day if required. Therefore the withdrawal fee depends on the state of the network.
FTX : Trading Fees and Charges
FTX offers a tiered fee structure.
It has declared the maker fees as zero for the rest of 2020.
A funding fee is charged for perpetual contracts and is given to the holders of the opposing contract.
It offers discounts to FTT holders. The taker fees cannot be less than 0.015%. Your discount limits are based on your FTT holdings.
FTX charges you 0.10% for the creation and redemption of leveraged tokens and 0.03 % as a daily management fee.
If you utilize the leverage of 50x, your trading fees are increased by 0.02%, and for 100x or higher, it is increased by 0.03% and paid to the insurance fund.
The fees for move contracts are dependent on the underlying index and not on the Move contract price.
FTX does not charge you for deposits, withdrawals, OTC trading, or for converting in your exchange wallet.
If your fiat/stablecoin deposit/withdrawal volume is more than the trading volume, you are charged a withdrawal fee of up to 0.10%. They confirm this with you before setting this.
PrimeXBT : Trading Fees and Charges
There have two types of fees: trading fees and overnight fees. Trading fees is for entering the position, and the overnight fees is for financing the position overnight.
The trading fee is between 0.01–0.05%. You can also avail of discounts on 30 days rolling trading volume.
- 300–600 BTC: 25% discount
- 600 + BTC: 50% discount
They do not charge you for depositing funds. For withdrawing your funds you will have to pay an arbitrary miner fee.
Deribit provides two different levels of KYC — Level 0 and 1. Some basic information is required in Level 0, while in Level 1, identification proof is required.
If you give any false information, Deribit has the right to immediately close your account and liquidate any open positions. They have partnered with Chainalysis for monitoring suspicious cryptocurrency transactions. You can complete your KYC under the verification tab under your account.
At any point in time, FTX can request more details if it suspects any malicious activity.
There is no need for KYC verification in PrimeXBT.
Deribit has an intuitive interface. They have a trade matching engine with less than 1ms latency. The website supports both light and dark themes. Deribit also has an application for both Android and iOS. Deribit API integrates with trading bot software, such as Actant, HaasOnline, and others.
The website is user-friendly and supports the dark mode. Whenever you hover over a button, you get information about that feature. There are a lot of videos, articles, and user manuals on how to get started. It uses a standard chart from TradingViews. You can also customize this chart. The grouping of the order book, order entry form, and others can be rearranged. You can chat with other users in the Trollbox chat window. They also have applications supporting Android and iOS.
PrimeXBT has a simple and easy to use interface. The platform is completely customizable. You can rearrange the charts, market window, and widgets as per your need. It allows you to change the spacing, colors, and grids. It has a bar, candle, and line charts.
You have access to 90 inbuilt indicators for technical analysis. The entire platform is built around widgets such as messages, charts, order forms, and more.
You can install the primeXBT mobile application available for both Android and iOS devices. It helps you to monitor your trades quickly.
Deribit provides an insurance fund that contributes to covering the loss of bankrupt traders. It ensures that the winning trader gets complete payment. It gives negative equity protection to you. The remaining amount is balanced from the winning traders if the insurance fund is exhausted though there is a margin involved.
Deribit API is useful for traders who develop their own trading algorithms and bots. It has two APIs: Websocket API and REST API. The latter has both public and private parts. You should use the public API if you are developing something utilizing the market. If you are using the private API, it should be signed with your API key. Your API key in the website under your account in the API tab. You should keep your API key safely.
Deribit provides a live testnet. You can create a different account or use the same one. It is useful for beginners or traders who want to get accustomed to the Deribit User Interface. You can develop crypto trading bots using Deribit API. You can also try your cryptocurrency algorithms before using them on live accounts. This feature is offered only by a few cryptocurrency exchanges.
FTX has its liquidation engine from scratch, which uses efficient and intelligent values to choose the liquidation process. It prevents the probability of clawbacks, though they are still possible in high market unpredictability. You should look out for their estimated liquidation price.
It is used to prevent customer losses due to sudden market movement, which would likely rapidly liquidate many open positions on the exchange.
Clients who use 50x — 100x leverage pay higher fees, directly added to the insurance fund due to their increased liquidation probability on the off chance that FTX’s liquidation engine fails, a sudden and unforeseen drop in Bitcoin’s price.
Around 5% of non-FTX owned FTT tokens are similarly set aside in the unlikely event that the insurance fund runs out of money to pay clients. The profits of these gains are divided among FTT token holders, also called ‘Socialized Gains.’
For beginners, the PrimeXBT Turbo platform is relatively easy to understand. You can take a position on an asset over a while for a determined profit.
If your price prediction was correct after the specified duration, you would get a fixed payout. You can either choose to go long or short.
You have three choices concerning the period of these trades. They can be thirty seconds, one minute, or five minutes.
PrimeXBT supports BTC/USD, ETH/USD, GBP/USD, EUR/JPY, EUR/USD, and USD/JPY. The possible profit can either be 70% or 85%, depending on the expiry time. It gives you a social perspective. You can observe and learn from what the other traders are doing and contend with them on the leaderboard. The trading charts are simplified.
PrimeXBT has recently made the Covesting Module available to all its users. It allows you to copy and execute the trading strategies of professional traders automatically. PrimeXBT builds a transparent environment and you are provided an extensive rundown of cryptocurrency traders and their returns in the last twenty-four hours and since they have joined.
You can copy the trader using three simple steps -
- Choose the trader by checking their performance.
- Set the amount you are want to allocate.
- Then click follow and enjoy the same returns.
All the three crypto exchanges store approximately 95% of the funds in cold storage to secure its users’ funds. All three crypto exchanges keep about 95% of the funds in cold storage to secure their users’ funds. However, it reduces the speed of customer withdrawals.
Deribit has two-factor authentication and you can set it up after login, it is not enabled by default. Also, it has a feature of IP pinning; if there is a change of IP address during a session, it ends the session. You can adjust your session timeouts and the default timeout period.
As per Mozilla’s Observatory-test, FTX has B+ security. It is an impressive score.
It also uses two-factor authentication. You can use Google Authenticator, Authy, or SMS for the same. You can also use a different password for withdrawals. Under the ‘login’ segment, you can add permission for various subaccounts.
Additionally, FTX has an incredibly specialized team from colleges like MIT and Berkeley and firms like Google and Facebook.
Lastly, the trade is associated with huge names in the cryptocurrency space. FTX’s partners’ rundown incorporates FBG Capital, Circle, and True USD, which supports the trade vet for its dependability.
It is protected from DDOS attacks using Cloudflare. The platform is secured by SSL provided by Amazon Web Services (AWS). This encrypts all the information transmitted over the internet using the “bcrypt” algorithm. Even if the hackers can access the server, they can’t decrypt the user passwords.
To provide an additional layer of security, it offers two-factor authentication by Google. It uses the Google Authenticator app and does not use SMS. You are advised to keep a backup of the secret key and confirm the setup by entering the generated code.
It uses Bitcoin Address Whitelisting to give an additional layer of security to your funds. This means you can make withdrawals only to whitelisted wallet addresses. If you commit any mistake, it will result in a permanent loss of funds.
All three exchanges Deribit, FTX, and PrimeXBT have extensive customer support.
Deribit always pays a lot of importance to its customers. It has a live chatbox. and a Telegram channel for interacting with its users. Zqoon and MrJozza are community managers. To contact their support staff you can raise a ticket in deribit.zendesk.com.
You can write to them at firstname.lastname@example.org. If you are in Korea, you can also reach out to them at email@example.com. They run the Telegramchannel in over ten languages. There is a detailed FAQ section available on their website. They also have a WeChat group (FTX_Official).
They also run a Youtubechannel where they regularly share updates on how to use the platform effectively.
You can also get in touch with them via their live chat feature, the account menu. Chat assistants respond quickly. The chat assistants often start the conversation.
You can also reach out to them through their Telegram channel.
In conclusion, if you are looking for good liquidity, FTX is the most liquid exchange. However, if you don’t want KYC problems, try PrimeXBT. However, Deribit is pushing for KYC, so it can follow compliance and protect its users. All three exchanges have a user-friendly interface. FTX has the most tradable products and Deribit and PrimeXBT are primarily popular for margin trading. In addition, PrimeXBT covesting helps you copy other trader’s strategies. This feature is no available with Deribit and FTX.
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