- Deribit: A Quick Exchange Overview
- Pros and Cons of Deribit
- Deribit: Trading Experience
- Deribit: Registration Process
- Deribit Fees: Trading, Deposits and Withdrawals
- How Safe is Deribit? Has it Been Hacked Before?
- Deribit: Customer Support and Customer Satisfaction
- Final Thoughts on Deribit: Is DeriBit Right For You
- Frequently Asked Questions FAQ
Deribit is a crypto derivatives exchange that offers high leverage trading: 100x for Bitcoin futures and 50x for Ethereum futures. It provides users with numerous order types including options, perpetual swaps, portfolio management, automated trading, and more.
In this Deribit review, we’ll go through some of the exchange’s core features and check its fees, trading features, security, customer service, and more, so you can decide if the exchange is right for you.
Deribit: A Quick Exchange Overview
Deribit is headquartered in Panama and was founded in 2016 by John Jansen, CEO, and Sebastian Smyczýnski, CTO. The broker started out as a Bitcoin-only options platform and added support for ETH in 2019 and SOL and USDC in the following years.
Deribit is not regulated by any entity in Europe or the United States, which can pose a concern for its users. The cryptocurrency landscape is continually changing, and the company faces the risk of clashing with regulatory bodies in the future.
Pros and Cons of Deribit
Pros of Deribit explained:
- Low-latency platform (the time-lapse between the user executing an order and the platform’s response to settling that order)
- Several advanced crypto trading features, such as perpetual, options, and futures contracts
- High leverage
- No deposits or withdrawal fees
- Provides cold storage and leverages various security protocols
- Provides demo account for beginners
Cons of Deribit:
- Not available for US citizens
- Unregulated exchange
- Not beginner-friendly
- Supports a limited amount of cryptocurrencies
Deribit: Trading Experience
Deribit offers an advanced trading dashboard whose trading features and account options can be found on the top header of the website. The dashboard might be overwhelming for beginners, but experienced crypto traders will appreciate its well-organized design.
Deribit offers low-latency trade execution response and an abundance of market data, allowing users to benefit from real-time market events and execute their trades accordingly.
Deribit: Crypto Derivatives and Options
Deribit allows users to trade derivatives such as futures and perpetual contracts and options on Bitcoin, Ethereum, Solana, and USDC.
While the exchange has a limited amount of cryptocurrencies, it does provide a high level of leverage, up to 100x on BTC, 50x on ETH, and 10x on Solana.
The exchange also allows users to perform block trades on these cryptocurrencies (block trades are large transactions privately negotiated and executed outside of the open market).
Deribit: Registration Process
Opening an account on Deribit is simple: enter your full name, email address, and create a password. To start trading, you must verify your account by going through a Know Your Customer (KYC) check and providing some extra information. This includes address, country of residence and a photo of a government-issued document, like a passport or ID card.
Note that Deribit has two types of accounts: Individual and Corporate.
Individual accounts can be set up by submitting an identification document that will be reviewed in two business days.
Corporate accounts must go through longer KYC and AML (anti-money laundering) checks to provide more detailed information about their businesses. For instance, the corporation will have to declare who the Ultimate Beneficial Owner (UBO) is (the person in control/representative of the firm).
Deribit Fees: Trading, Deposits and Withdrawals
Deribit, like most exchanges, has a maker-taker fee system, where the makers —the ones providing liquidity to a specific market by placing market orders— are charged lower fees compared to takers —the ones taking liquidity off the exchange by taking those orders.
|Contracts||Maker Fee||Taker Fee|
|BTC Weekly Futures||-0.01%||0.05%|
|ETH Weekly Futures||-0.01%||0.05%|
|SOL Weekly Futures||-0.02%||0.05%|
|BTC Options||0.03% of the underlying or 0.0003 BTC per options contract||0.03% of the underlying or 0.0003 BTC per options contract|
|ETH Options||0.03% of the underlying or 0.0003 ETH per options contract||0.03% of the underlying or 0.0003 ETH per options contract|
|SOL options||Not Updated on Website||0.03% of the underlying or 0.0003 SOL per options contract|
Deribit charges a fee on futures and options deliveries. Daily and weekly futures are exempt from delivery fees.
|BTC/ETH/SOL Weekly Futures||0.0%|
|BTC/ETH/SOL Daily Options||0.0%|
|BTC/ETH/SOL Options||0.015% (this fee can never be higher than 12.5% for the option’s value)|
Liquidations incur an additional fee, depending on the cryptocurrency, and are increased by a percentage of the underlying contract size.
|BTC and USDC||Fees|
|Futures and Perpetuals||0.75%|
|ETH and SOL|
|Futures and Perpetuals||0.9%|
Deposit and Withdrawal Fees
You can only deposit and withdraw cryptocurrencies. Deribit doesn’t charge deposit fees but withdrawal fees will depend on the current state of each blockchain.
How Safe is Deribit? Has it Been Hacked Before?
Deribit keeps 99% of users’ crypto funds held in cold storage in vaults with different bank safes. The exchange leverages various security protocols and allows users to set up 2FA (two-factor authentication) and IP pinning.
The exchange has an insurance fund which is maintained by liquidation fees. This fund ensures the winning party of a trade is paid out and that the losing party doesn’t go bankrupt. This means that if the losing party has negative equity on their balance after a trade, the insurance fund can help it set it back to zero.
Deribit: Customer Support and Customer Satisfaction
Users can reach Deribit’s customer support in three ways: the Help Center, email, and support tickets.
Overall, Deribit is widely trusted by its users. In October 2019, the exchange reimbursed customers $1.3 million after it suffered a flash crash on its BTC index calculation mechanism and triggered invalid liquidations.
Final Thoughts on Deribit: Is DeriBit Right For You
The global regulatory landscape is changing fast, and there’s the possibility that unregulated exchanges and crypto firms might clash against new regulatory laws. In the US, for instance, crypto regulation is on the way, and the Securities and Exchange Commission (SEC) might pass crypto regulation to the Commodities and Futures Trading Commission (CFTC).
For beginners, Deribit might not be the right choice as it mostly offers highly complex financial instruments. But if you want to give it a try, the exchange allows you to create a demo account and experiment with all the trading features it has to offer in real-time markets; the only difference is that you’ll be using fake money.
On the other hand, if you’re looking for a derivatives platform that offers high leverage on Bitcoin and Ethereum futures, Deribit offers the necessary features.
Frequently Asked Questions FAQ
How Many Cryptocurrencies Does Deribit Support?: Deribit only supports Bitcoin, Ethereum, Solana and USDC.
Is Deribit Suitable For Beginners? If you’re new to derivatives, know that you’re entering into a complex world that requires years of study and practice. This is the reason why Deribit is more suitable for experienced users.
How Many Countries Does Deribit Accept?: Deribit is available for most users worldwide, with the exception of US, Canadian, Japanese and Dutch citizens.
Is Deribit Safe?: While unregulated, the exchange is safe and implements several security protocols to protect its users.
Does Deribit Support fiat, Bank Transfers or Card Deposits?: No, Deribit only allows cryptocurrency funding for accounts.
Can It Clash Against Regulatory Laws in the Future? Deribit hasn’t bothered to comply with regulatory bodies even though they focus on offering complex financial products using Bitcoin and other cryptocurrencies. The exchange doesn’t provide its services to a handful of countries, including the US, Japan, Canada, and the Netherlands.
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