Deribit is a cryptocurrency futures & options exchange allowing you to trade Bitcoin and Ethereum with up to 100x leverage. They have a fast trade matching engine with less than 1ms latency which you can access via their web interface, mobile or API.
Deribit Referral Link & Promo Code
10% Off Trading Fees For 6 months When Signing Up With Our Deribit Referral Link!
How To Use A Deribit Referral Code
To use our Deribit promo code click on the green “Click To Get This Deal” button. This will open a new window and will take you to the Deribit homepage. Click on the “Create Account” button which will take you to the account registration page. There will be a green message confirming that you have correctly used our referral link and will receive a sign up bonus consisting of 10% off your trading fees as seen in the image below. Fill in your details and press the submit button to confirm your account registration.
The name Deribit is an amalgam of the words “derivative” and “Bitcoin.” Deribit, as the name implies, is a crypto derivatives trading platform. It started life back in 2016 as a Bitcoin-only exchange but has just recently branched out to Ethereum derivatives as well. Deribit is based in Amsterdam. It is the brainchild of several cryptocurrency aficionados who were frustrated by the lack of cryptocurrency derivative trading platforms and decided to take matters into their own hands.
In order to avoid all the paperwork and hassle that are the inevitable byproduct of anti-money laundering laws, the founders of Deribit decided not to accept fiat currency deposits. So if you have no crypto to trade with, this is not the exchange for you. But by not accepting fiat currency deposits, Deribit makes it easier for you to conduct your business without the long arm of the regulator sniffing around in your private life.
What They Offer
Deribit offers options, futures and spot price trading. The options they offer are Euro-style options (which make sense since they’re headquartered in Europe). This means no executing them before their expiration. Short selling is also allowed. But not encouraged if you’re not willing to accept the sizable risks that come with it.
Deribit allows a best-in-class 100x leverage on certain swap and futures contracts. Again, however, while the potential upside on such contracts is enormous, the potential downside is equally enormous. So this type of margin trading is not recommended for newcomers. At the same time, this type of leverage can be useful in minimizing your exposure in the event of a hack. But that’s no excuse for engaging in overly risky behavior.
For the most part, Deribit fees are considered competitive when compared to their main competitor, BitMEX. They operate using the standard “maker/taker” model.
- If you add liquidity to their books, you’re rewarded with +0.05% of that amount.
- If you take liquidity off the Deribit books, they’ll deduct a fee equivalent to 0.02% of the amount removed.
As we said, this is roughly in line with BitMEX.
Should you decide to withdraw money from the exchange, you’ll be charged 0.0006 Bitcoin. The value of which will obviously vary widely, often from day to day. You’re also likely to incur network mining fees, so be aware of that.
Unlike many other cryptocurrency exchanges, Deribit has not, as of this writing, suffered a hack. That’s always a good thing even though we can’t find any particular way in which Deribit stands above the crowd in terms of security. Their essential security protocols are composed of:
- 95% of assets held in cold storage.
- A bounty program that encourages White Hat programmers to discover vulnerabilities.
- Real-time account auditing and liquidation of underfunded accounts.
- An obviously effective risk engine that analyses all orders before they reach the books.
- The ability to activate two-factor authentication.
On the whole, one would have to conclude that the Deribit platform is basically sound. Certainly, there’s no arguing with their spotless record. They use the TradingView charting package and also offer demo trading, which allows you to get a feel for the trading platform before you actually put any of your assets on the line. For some reason, though this option is sort of squirreled away in the recesses of the site and most people only learn about it through the FAQ page.
Are There Any Disadvantages?
The disadvantages of Deribit stem mostly from the fact that it doesn’t accept fiat currencies. And until recently they only accepted Bitcoin deposits. They have since branched out into Ethereum options as but you get the idea. Your options are limited. They don’t even let you buy some Bitcoin at the door. Instead, if you want to play in their house, you have to arrive with Bitcoin or Ethereum in hand or you’ll be turned away.
The Bottom Line
Deribit is no doubt attractive to those who yearn for the ability to trade in crypto derivatives. Fees are in line with competitors like BitMEX, and the platform as a whole is easy to use and proven safe. They’re bound to lose some business as a result of their refusal to accept fiat currencies. But at the same time, crypto purists aren’t going to have an issue with that approach. Because not allowing fiat means not inviting regulators. And, to at least some degree, that’s right in keeping with the crypto creed.