Last Updated: April 11, 2022
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Welcome to our Deribit review!
Choosing the right online trading platform is like choosing the perfect house. You have to consider the features and the costs. Also, your comfort matters.
The problem is — you’ll only get to fully understand the shortcomings, as well as your actual needs, once you are already in.
An honest and extensive review can be the much-needed lifeline in this matter.
And so, to minimize your potential frustrations and help you come as close as possible to your tailor-made exchange, we will examine Deribit trading in detail.
Stay with us and learn more about the platform itself, its usage, fees, alternatives, and more.
|Full list of restricted countries available here.|
What Is Deribit?
Deribit is a Panama-based cryptocurrency trading platform. Its founder, John Jansen, launched it in 2016 in the Netherlands. The platform has been expanding its tradable markets ever since. And after December 2020, when Bitcoin surpassed $20,000, the Deribit volume and its user base have multiplied several times. Now, the Deribit exchange is moving towards becoming one of the leading crypto trading sites.
The name is a coinage made of two abbreviations — Deri for Derivatives and Bit for Bitcoin. And it adequately captures the platform’s essence. This crypto trading platform specializes mainly in financial derivatives — futures and options. So basically, you are making money by speculating on the future worth of your preferred digital currency without owning it.
Deribit leverage goes up to 100x in Bitcoin and up to 50x in Ethereum, these being its two principal currencies.
How to Use Deribit
One of the biggest concerns of every crypto trade enthusiast is whether they’ll be able to use the preferred crypto trading software and to what extent. For that reason, in this Deribit review, we will first discuss the account requirements and Deribit restrictions. After that, we will go into its features and tools. And finally, we try to cover as many common users’ concerns as possible, like — what can you trade on Derebit, and on what principles it all works?
What are the account requirements?
There are three main requirements to keep in mind when opening a Deribit account:
- One should not be a citizen or a resident of any of the Deribit restricted countries. They are as follows: Cuba, Guam, Iran, Iraq, Japan, Democratic People’s Republic of Korea, Panama, Puerto Rico, Samoa, Sudan, Syrian Arab Republic, the United States, and the Virgin Islands.
- Users need to complete level 1 or at least level 0 of Deribit KYC verification. Level 0 includes only the basic information such as name, email, date of birth, and country of residence. However, Deribit withdrawal limits exist with this account type. Level 1, on the other hand, doesn’t have withdrawal restrictions, but it requires portfolio margin and government ID.
- The minimum order size is noticeably higher than with most other crypto platforms. For Bitcoin, it is 0.1 BTC, and for Ethereum, 1 ETH.
So, if you belong to any of the above-listed countries, you might want to consider some other trading platforms. The same goes if you avoid sharing personal data or trade with limited assets.
How to start trading?
Once you confirm you meet all the necessary Deribit account requirements, joining the trade is pretty fast and straightforward.
All you need to do is to register on Deribit’s official website and provide a contactable email address. After that, you will receive a verification email with a link to follow. As soon as you complete the KYC form, your account will be set and ready to use.
What can you trade?
Deribit is exclusively a cryptocurrency trading platform. So if you’re looking for a more comprehensive brokerage that will allow you to trade stocks, bonds, and other assets, you should consider the alternatives.
The Deribit futures and options range is quite extensive. So, if your sphere of interest lies within futures/options trading with impressive leverage, Deribit might just be the right choice for you.
Deribit futures review
Futures are agreements according to which you will buy or sell Bitcoin or Ethereum at an agreed-upon price and predetermined time. A future contract costs $10. The maximum contracts go up to $1 million.
Deribit futures expire quarterly. You can choose to set your futures due date on the last Friday of:
The longest future offer at Deribit can be 9-months, taken from the time of your entrance. All the settlements occur last Friday of the month, at 8 UTC. Investors will in advance place the premium on the futures contract, per their price predictions.
Perpetual futures are available too. These don’t have a specific expiry date. As of February 2021, the Bitcoin June futures contracts were trading at almost $4,000 more than the perpetual ones.
Deribit options review
Some traders see the opportunity for gain in cryptocurrency price volatility. They prefer Deribit options because of the slightly more advanced trading strategies.
With this agreement, you get the option to buy or sell a cryptocurrency at a preselected price on a given date. However, you don’t commit to it. If you are familiar with the concept of stock options, the basic principle is quite similar.
You can either buy an asset — a call option.
Or, you can sell it — put option.
Deribit options are European-style. Meaning they are exercised only upon expiration. With Deribit, this happens automatically. Rather than assets, all the cash gets settled at that moment.
Deribit provides Delta, volatility, and recent trade information to investors, which makes it particularly user-friendly.
There are different types of options available at Deribit. Those are Limit, Market, Stop-Limit, and Stop-Market.
What tools are available on the Deribit exchange?
Brokerage tools are there to ease the trading process and make it smoother. By applying them, you can alter the course of your trade and ensure better chances for success.
Deribit employs two excellent tools:
Deribit Option Discovery Tool — It gives quick suggestions based on your on-the-spot input and market outlook. You start by selecting a currency, the direction its price will take (your prediction), and the expected timeframe. After that, the tool will recommend three different options out of which you can choose the likeliest outcome.
Deribit calculators — There are two different ones:
- The Trade Calculator enables you to enter your trade parameters and get the necessary calculations. These calculations are of leverage, liquidation price, stop-loss price, and possible profit.
- With the Size Calculator, you can calculate your required balance, position size in BTC, or leverage. The result appears based on the values for the other two parameters that you enter.
Additionally, there are a few very practical and descriptive tutorials on the official Deribit website.
How does the platform work?
Throughout numerous Deribit reviews, users characterize the platform as the most suitable for professional traders. This is due to a high number of features, markets, and possibilities.
The usage itself, aside from the numerous trading strategies to dive into beforehand, is quite simple. As soon as you verify your account, you are all set for trading cryptocurrency. Besides, the platform offers various tools, educational materials, and tutorials for the user’s convenience.
Is there a Deribit demo?
Deribit has a demo option of a live testnet. You can add a new account or use an existing one for this. You will instantly receive 10 Bitcoins as demo funds. So you are not risking a single penny of your real money.
The Deribit testnet is excellent for beginners or investors who want to get accustomed to the platform features first. One can try out various cryptocurrency algorithms before applying them in live crypto trading.
Not many cryptocurrency trading sites have this option.
Let’s now take a look into Deribit trading fees. They follow the maker-taker model, which means that orders that add liquidity differ in price from orders that remove liquidity. Each product has specified costs expressed as a percentage of the underlying asset.
We can divide the fees into the following three categories:
|Contracts||Maker Fee||Taker fee|
|BTC Weekly Futures||-0.01% (rebate)||0.05%|
|BTC/ETH Options||0.03% of the underlying asset (or 0.0003 BTC/ETH per options contract)||0.03% of the underlying asset (or 0.0003 BTC/ETH per options contract)|
Please note that the fees for Deribit options can’t get higher than 12.5% of the option’s value. So if an option is trading at 0.0001 BTC, the taker fee can’t exceed 0.0000125 BTC. Instead of 0.0003 BTC (per options contract), the cost will be 12.5% of 0.0001 BTC.
|Delivery (fee payment at expiry)|
|BTC Weekly Futures/ Daily Options||0.00%|
|Option||0.015% (can never be more than 12.5% of the option’s price)|
As you can see, the daily options and weekly futures are exceptions for delivery fees.
|Deribit Liquidation Fees|
|BTC Perpetual and Futures||0.5%|
|ETH Perpetual and Futures||0.9%|
|Options||0.19% of the underlying asset (or 0.0019 BTC for every options contract)|
The largest part of each liquidation fee is automatically added to the insurance fund. Futures makers orders are added fully.
There are no deposit fees on Deribit. And Deribit withdrawal fees follow those of the Bitcoin network.
Deribit Mobile App
This part of our Deribit review concerns its mobile app.
Those who prefer trading from their mobile phones will probably be glad to hear that this option is available to Deribit users. The mobile app covers both iOS and Android devices, and through it, you can access most of the platform trading features.
The app rating on Google Play is modest 3.6/5. However, there are only 90 ratings as of June 2021. So one should probably take this with some reserve.
Visiting the Apple Store, the results slightly improve, with a rating of 4.2/5. But considering that only five users have left reviews, this may not be much of a reference.
Deribit Customer Service
Deribit support comes in several forms. You can either:
- Contact them directly via email.
- Use the live chat for instant replies.
- Consult the well-rounded FAQ section of the site for more broad questions you might have.
- Watch Deribit official youtube channel with a lot of explanatory videos for some trading tips and tricks.
- You can even contact Deribit support via Twitter.
Whenever choosing the right brokerage or robo-advisor, evaluating the competition and comparing it to your preferred choice is a good call. On the same note, this Deribit exchange review wouldn’t be complete without a brief comparison to its alternatives.
So let’s briefly analyze the competition.
Deribit vs LedgerX
If you’re looking for a US-based and Federally licenced Bitcoin platform with lower fixed fees, LedgerX may be just the right one for you.
For a starter, Deribit contract price is $0.05. Aside from that, you only pay $5 per Bitcoin during the trade. This is quite low compared to the cumulative Deribit fees. Also, LedgerX accepts USD as a fiat currency, which is not the case with Deribit. The common thing with these two platforms is that they both work with Bitcoin derivatives exclusively.
On the LedgerX downside, the platform is only SaaS supported. Android and iOS apps are not available.
Deribit vs BitMEX
In terms of the variety of assets, crypto trading experience, and liquidity, BitMEX could take a considerable lead compared to Deribit. For some, these are the imperative factors for choosing a trading exchange.
Also, crypto traders usually seek anonymity, which Deribit fails to ensure because of its KYC policy. BitMEX doesn’t have such requirements. Still, BitMEX is not open for use in the US either.
Deribit vs Binance
Unlike the Deribit pro style of trading, Binance’s simplified usage makes it highly suitable for beginners. Another important difference is that Binance works according to the VIP tier system. Meaning, rates and fees depend on your level (VIP 0-9). And, while the fees may not be of Deribit scale, this Bitcoin broker charges the annual interest rates as well. Both the costs and interests vary with the tier level. Besides, each asset follows a different fee system.
Notably, Binance currently trades in 41 US states.
Deribit vs Bybit
Same as Deribit, Bybit doesn’t do business in the US. Both of the platforms trade cryptocurrency, but their range is not the same. While Deribit exchange is limited to Bitcoin and Ethereum, Bybit works with more different coins.
Additionally, Bybit comes with a rewards program, giveaways, and tournaments. As such, it attracts an altogether different type of investors. Both have fixed fees, but Bybit’s combined costs are lower than those of Deribit. The Deribit deposit minimum is higher compared to Bybit’s, which allows any starting amount. On the other hand, Deribit has higher leverage which may be attractive to experienced users.
Every trading platform has its advantages and its downsides. Try choosing the adequate one according to your preferences and financial potential.
Deribit is ideal for experienced crypto-traders who seek to trade Bitcoin and Ethereum futures and options at high leverage. On the other hand, if you’re looking for a more beginner-friendly and regulated Bitcoin trading platform, better check the alternatives.
Also, if you are planning to trade cryptocurrency within US borders, this Deribit exchange review will not be of much use to you.
- Futures and options trade available
- No deposit fees
- High leverage
- Fund insurance
- Not regulated by any financial body
- Not very beginner-friendly
- No fiat currencies
- Liquidity issues
Is Deribit legit?
Deribit is a legit cryptocurrency trading platform, primarily suitable for bitcoin exchange professionals.
Is Deribit regulated?
Deribit is not backed by any regulatory body. So, as legit and professional as the exchange is, you trade cryptocurrency at your own risk at the end of the day.
Can US citizens use Deribit?
Unfortunately, US citizens or residents can’t use Deribit. The US is not on Deribit’s list of allowed countries
Does Deribit require KYC?
Yes, Deribit requires KYC as part of its verification process. The KYC requirements are explained, in more detail, at the beginning of this Deribit review.