Crypto futures trading is the most popular method for trading perpetual contracts, both long and short, to effectively hedge market volatility or add leverage to a portfolio. However, with abundant crypto futures platforms available, investors often find it challenging to identify the right choice.
Critical elements such as ease of use, transaction and funding fees, liquidity, and the diversity of supported cryptocurrencies significantly influence the decision-making process. In this article, we will outline and evaluate the top crypto futures exchanges, highlighting their advantages and disadvantages, to aid you in making well-informed trading decisions.
Key Points:
- Crypto futures are agreements enabling traders to speculate on the prices of cryptocurrencies by buying (long) or selling (short) with substantial leverage. Stablecoins like USDT and USDC typically collateralize these contracts.
- The best centralized and decentralized platforms for trading in crypto futures include Bybit, Hyperliquid, MEXC, Binance and Gate.io.
Best Crypto Futures Trading Platforms
Choosing the right crypto futures trading platform involves evaluating trading pairs, fees, user interface, security, and support. In our review of over 15 exchanges, we focused on regulatory compliance, variety of cryptocurrencies, leverage options, and funding methods. Our selected list highlights leading platforms, detailing their derivatives, fees, liquidity, and unique features, helping traders make informed decisions.
Exchange | Cryptocurrencies | Trading Fees | Available Leverage | Key Features |
|---|---|---|---|---|
| Bybit | 1,000+ | 0.01%Maker Fee &0.06% Taker Fee | 100x Leverage | Futures, Options, Inverse Futures, Staking & More |
| HyperLiquid | 100+ | 0.02% Maker Fee Rebate & 0.05%Taker Fee | 50x Leverage | Decentralized Platform, Fee Rebates & More |
| MEXC | 300+ | 0.02%Maker Fee &0.06% Taker Fee | 200x Leverage | Most Leverage, Futures, Options & More |
| Binance | 300+ | 0.02%Maker Fee &0.06% Taker Fee | 20x Leverage | Futures, Options, Lending, Staking &More |
| Gate.io | 1,700+ | 0.015%Maker Fee &0.05% Taker Fee | 100x Leverage | Widest Altcoin Variety,Futures, Options &More |
1. Bybit
Bybit is a leader in cryptocurrency futures trading, recognized for its intuitive interface, robust liquidity, and top-notch security. It serves an international clientele in over 180 countries and simplifies fiat deposits through bank transfers, credit/debit cards, and PayPal. The use of USDT and USDC as collateral adds flexibility. Endorsed by well-known crypto influencers such as Hsaka, Ansem, and Pentoshi, Bybit has attracted more than 25 million users.
Bybit is particularly noted for its expansive selection of cryptocurrencies, providing over 1,000 options for spot trading and over 300 for futures trading. The platform's appealing fee structure offers rates as low as 0.01% for market makers and 0.06% for market takers. As Binance scales down, Bybit's influence in the market has been validated by prominent analysts and is reflected in its impressive daily trading volume exceeding $56 billion.
- Fee Structure: Market makers benefit from low fees of 0.01%; market takers are charged 0.06%, with variable spreads depending on market conditions.
- Available Assets: Offers over 1,000 cryptocurrencies for spot trading and more than 300 for futures.
- Deposit Methods: Includes bank transfers, credit/debit cards, PayPal, Google Pay, Apple Pay, and more.
- Available Leverage: Provides up to 100x leverage on perpetual futures contracts.
2. HyperLiquid
HyperLiquid is the best decentralized futures platform with a remarkable 24-hour trading volume surpassing $4 billion, establishing itself as the most liquid DeFi exchange. It operates on the Arbitrum layer 2, delivering quick and liquid trading experiences, zero gas fees, rebates for makers, and competitive rates for takers. It supports leverage up to 50x on an extensive lineup of over 100 cryptocurrencies, including leaders like Bitcoin, Ethereum, and Solana.
Designed for efficiency and ease of use, HyperLiquid offers one-click trading and rapid transactions on the Arbitrum blockchain, making it a favourite among DeFi derivatives traders. It focuses on security and seamless integration with Web 3 wallets, providing a transparent on-chain order book. As a non-custodial platform, HyperLiquid ensures a safe trading environment without the custodial risks linked to platforms like FTX.
- Fees: Makers receive a 0.2% rebate; starting fees for takers are 0.05%, with potential volume discounts.
- Available Assets: Hosts an impressive selection of over 100 cryptocurrencies.
- Deposit Methods: Includes support for major Web 3 wallets and USDC.
- Available Leverage: Allows up to 50x leverage across its comprehensive crypto portfolio.
3. MEXC
Ranked third on our list, MEXC, established in 2018 and headquartered in Victoria, Seychelles, serves a vast audience across over 170 countries. It offers a diverse portfolio of over 300 altcoins in a user-friendly and secure platform. MEXC stands out for its high-leverage options, delivering up to 200x on more than 100 cryptocurrency assets, surpassing many competitors.
MEXC's futures platform is recognized for its rapid volume growth, handling daily transactions exceeding $10 billion. While it may not offer the liquidity of the largest exchanges, it has substantial liquidity and offers narrow spreads on popular crypto pairs. Providing services such as spot, margin, futures, staking, and Initial Exchange Offerings (IEOs), MEXC is favored by traders seeking diverse and high-leverage trading options.
- Fees: Maker fees set at 0.02%, Taker fees at 0.06%.
- Available Assets: Wide selection featuring over 300 altcoins, including prominent cryptocurrencies like Bitcoin and Ethereum.
- Deposit Methods: Supports USDT, BTC, USDC, and credit card payments.
- Available Leverage: Offers market-leading leverage up to 200x on futures contracts, targeting seasoned traders seeking high stakes and sizeable rewards.
4. Binance
Securing the fourth spot, Binance is a key player in the crypto futures market, although it has recently lost ground to Bybit in terms of volume and user base, partly due to regulatory issues in the USA. These included a $4.3 billion fine after a settlement with the DOJ. Operating in over 150 countries and supporting a portfolio of more than 300 cryptocurrencies, Binance is a favorite among institutional investors for its superior liquidity in major assets like BTC and ETH.
Binance offers up to 25x leverage on futures, with fees starting at 0.02% for makers and 0.06% for takers. While its fees are marginally higher than Bybit’s, its broad range of trading options and robust liquidity make it a strong choice. However, traders should be mindful of the increased regulatory scrutiny concerning its collateral management practices.
- Fees: Maker orders cost 0.02% and taker orders 0.06%.
- Available Assets: Offers over 100 cryptocurrency derivatives contracts and more than 300 assets for spot trading.
- Deposit Methods: Supports various methods including bank transfers, cryptocurrency, credit/debit cards, WeChat Pay, and others.
- Available Leverage: Provides up to 25x leverage on futures contracts.
5. Gate.io
Gate.io claims the fourth spot on our list, standing out for its exceptional range in long-tail altcoin futures trading. With a robust lineup of over 1,700 cryptocurrencies, the platform is notable for its early listings of unique altcoins and memecoins such as Dogwifhat, PEPE, and more. Serving an international community in over 200 countries, Gate.io is a go-to for traders seeking a broad spectrum of assets for spot and derivatives trading.
Though it has slightly lower liquidity compared to bigger exchanges, Gate.io offers attractive fees with maker rates at 0.015% and taker rates at 0.05%. These competitive fees, coupled with its its broad asset selection, make Gate.io a favorable option for traders searching for variety in a vibrant market environment. However, it's important to note that Gate.io operates from Seychelles, falling outside some stricter regulatory jurisdictions that oversee other platforms.
- Fees: Maker fees at 0.015% and taker fees at 0.05%.
- Available Assets: Offers an expansive selection of 1,700+ cryptocurrencies.
- Deposit Methods: Accepts bank transfers, cryptocurrency deposits, and card payments.
- Available Leverage: Leverage options extend up to 100x on futures contracts.
What is Crypto Futures Trading?
Crypto futures trading involves entering into contracts to buy (long) or sell (short) a cryptocurrency at a future date at a predetermined price. Unlike traditional financial markets, crypto futures are typically perpetual, meaning they do not have an expiration date, allowing traders to hold positions as long as they maintain the required margin.
This setup facilitates speculation on the price movements of cryptocurrencies without owning the actual assets. Leverage in these contracts can significantly increase potential profits but also raises the risk, underscoring the importance of effective risk management.
Selecting a suitable platform for trading crypto futures involves assessing key factors such as the diversity of available cryptocurrencies, robust security protocols, transparent fee structures, and ease of use of the platform. Centralized exchanges typically collateralize contracts with liquid and safe stablecoins like USDT and USDC, enhancing stability and liquidity.
Can I Trade Crypto Futures in the USA?
In the USA, the crypto futures available to investors are those traded on regulated markets such as the Chicago Mercantile Exchange (CME), with BITO by ProShares being a prime example. These options are typically geared towards institutional investors and tend to be more expensive and less user-friendly than those offered on crypto-native futures platforms.
Due to the regulations enforced by the Commodity Futures Trading Commission (CFTC), retail investors looking for alternatives often gravitate towards decentralized platforms. HyperLiquid, a leading DeFi futures exchange, enables trading directly from wallets like MetaMask or Coinbase Wallet in a non-custodial manner, providing a compliant option for trading crypto derivatives in the U.S.
Futures Trading Fees
Understanding the fees charged by cryptocurrency futures exchanges is crucial for traders, as these fees significantly impact both trading strategies and profitability. Here’s a detailed explanation:
- Trading Fees: These are incurred during trade execution. Maker fees are applied to limit orders that help add liquidity to the market by not filling immediately. Taker fees are incurred by orders that execute instantly, thus removing liquidity from the market.
- Funding Rates: Specifically relevant to perpetual futures contracts, funding rates are adjusted periodically to align the futures prices with the spot price of the underlying asset. Keeping an eye on these rates is essential for effectively managing the costs of maintaining open positions.
- Withdrawal Fees: Charged when you withdraw funds or profits from the platform, these can be either a fixed fee or a percentage of the amount withdrawn.
- Margin Fees: Relevant in margin trading, where trades are made with borrowed funds. These fees typically include interest or cost of borrowing, which varies based on the amount borrowed and the duration of the loan.
As each platform has its unique fee structure, thoroughly researching these costs is crucial to maximize your returns.
Bottom Line
In wrapping up, selecting the right crypto futures trading platform is crucial for capitalizing on market trends effectively. This involves a careful examination of several key aspects like the variety of cryptocurrencies offered, the clarity of fee structures, security protocols, and the overall trading experience.
Our detailed analysis provides insights into top platforms including Bybit, HyperLiquid, MEXC, Binance, and Gate.io. With this guidance, traders at all levels of experience can make knowledgeable decisions tailored to their trading ambitions and risk profiles within the fast-paced world of crypto futures.
