Deribit Review 2024: Exchange Features, Fees, Security

If you’re looking for options trading, our Deribit review is worth reading. It is a crypto exchange known for its advanced derivatives market, including futures and options trading.

In this Deribit exchange review, we will look at its trading features, fees, pros, and cons. This will help you decide if it is the right crypto platform for your trading needs. 

Key Takeaways:

1. Deribit excels in cryptocurrency derivatives trading, offering extensive options and futures markets with 50x leverage primarily for Bitcoin and Ethereum.
2. The Deribit exchange charges zero fees for spot trading and 0% maker and 0.05% taker for futures contracts. Options trading on Deribit comes with a fee of 0.03% for both makers and takers.
3. While Deribit supports deposits in over 41 fiat currencies through Legend Trading, it does not offer fiat withdrawals, focusing instead on cryptocurrency transactions.

Deribit Review: At a Glance

What is Deribit?

Deribit is a cryptocurrency derivatives exchange, known for its robust offerings in options and futures trading. Launched in 2016, it is headquartered in Panama City, Panama. Since its inception, it has become a dominant player in the crypto derivatives market, particularly known for options, inverse and linear perpetuals, and futures contracts.

It quickly established itself as a key platform for institutional and retail traders alike due to its advanced trading features, good liquidity, and reliable infrastructure. Currently, it holds over 90% of the market share in crypto options trading. It has also introduced innovative products like BTC DVOL futures, which are based on the Deribit Bitcoin Volatility Index.

A key feature of Deribit is its low-latency trading environment, which is crucial for high-frequency trading. The platform provides advanced tools like Position Builder and Deribit Metrics to help traders optimize their strategies. Plus, it ensures deep liquidity through its network of top-tier market makers, facilitating efficient price discovery and tight spreads.

Deribit’s trading interface is best for both individual traders and institutions. Beginners can use a free options course and a TestNet to practice trading without risk. Advanced traders benefit from a highly customizable trading interface with drag-and-drop components and the ability to create custom trading strategies for different assets.

Pros

• Advanced options and futures trading platform
• Zero fees for spot trading
• Demo trading portal for beginners
• Various strategy-building tools like Position Builder and Deribit Metrics
• User-friendly trading interface with mobile app

Cons

• Limited support for fiat currency deposits and withdrawals
• No advanced trading features like copy trading and crypto staking services
• Limited trading volume and liquidity in the spot market

Is Deribit Safe & Legit?

Deribit is a legitimate and safe crypto trading platform. Here are the Deribit security measures designed to protect user accounts and data:

• Two-Factor Authentication (2FA): It supports two methods for 2FA – Google Authenticator and Yubikey. Yubikey is a physical device that you plug into your computer or connect via NFC to your phone. It provides a more secure way to verify your identity. Using 2FA adds an extra layer of security, making it much harder for unauthorized users to access your account.
• IP Pinning: When you enable IP Pinning, your session is locked to a specific IP address. If your IP address changes during a session, Deribit will automatically terminate the session. This means that if someone tries to hijack your session from a different location, they will be immediately logged out. This feature protects against session hijacking attacks.
• Safe Session Duration: It controls how long your session remains active if there is no activity. If you select this option, your session will automatically time out after one hour of inactivity. This reduces the risk of someone accessing your account if you leave your device unattended.
• SSL Encryption: Deribit uses SSL (Secure Sockets Layer) encryption to protect data transmitted between your browser and their servers. SSL encryption ensures that any data you send or receive is encrypted and cannot be easily intercepted by hackers.
• Know Your Customer (KYC): It requires all users to complete a KYC (Know Your Customer) process. KYC is a standard practice in the financial industry to prevent fraud, money laundering, and other illegal activities. It helps ensure that users on the platform are who they claim to be.
• Bug Bounty Program: The exchange runs a Bug Bounty program to encourage security researchers to find and report vulnerabilities. If you find a security flaw, you can report it to Deribit and potentially receive a reward. This program helps improve the platform’s security by leveraging the skills of external security experts.

Deribit Licenses and Regulations

The Deribit exchange operates under some licenses and regulations to ensure compliance and security:

1. Republic of Panama: DRB Panama Inc, a corporation incorporated under the laws of the Republic of Panama, registered at the (Mercantile) Record No 155684990, Panama City, Republic of Panama. This means they follow specific legal and regulatory standards set by the country.
2. VASP License (Dubai): Deribit also holds a VASP license in Dubai. This further demonstrates their commitment to operating within regulatory frameworks and ensuring a secure trading environment.

Deribit Features: What Does it Offer?

Deribit Tools For Strategy Building

Deribit offers several tools that enhance the trading experience for both options and futures traders. Here’s a closer look at these tools:

1. Options Wizard

The Option Wizard helps you find the best options strategy based on your market predictions. Just tell it what you’re planning: underlying currency, expected price, prediction date, and investment amount.

The Option Wizard then dives into the real-time data from the Deribit market, crunching numbers to show you potential profits, returns, and even the worst-case scenario (maximum loss) for different strategies. Finally, it highlights the one strategy with the highest expected return.

This is a game-changer for busy traders or those just starting out. You don’t need to be a financial expert to navigate options anymore. The Option Wizard puts the power of analysis at your fingertips, so you can focus on making informed decisions.

2. Position Builder

Deribit Position Builder is a practice area for crypto options and futures trades. You can pick what you want to buy or sell, like buying a call option or selling a futures contract, and see how much money you might make or lose on all those trades together. 

But instead of using real money, it’s like a simulation. This way you can play around with different trading strategies and see if your plan makes sense before risking real money.

The cool thing is, you can try out all sorts of options and futures positions, not just simple ones. By building a whole portfolio of trades, you can see how your strategy would perform if the market goes up, down, or sideways. This is especially helpful for complex strategies like spreads, straddles, and butterflies.

3. Deribit Metrics

Deribit Metrics is a section that offers a bunch of helpful charts and info about the trading options available. It’s like a dashboard that shows you what’s going on with different cryptocurrencies on Deribit. Here’s what kind of stuff you can find on Deribit Metrics:

• Futures Prices: This shows how the price of futures contracts compares to the actual price of the crypto.
• Funding Rates: It lets you know if people are more willing to pay to hold onto a futures contract (funding rate is positive) or if they’d rather pay to get out of one (funding rate is negative).
• Open Interest: This tells you how many options contracts are still outstanding for a particular currency. High open interest suggests there’s a lot of betting activity on that currency.
• Volatility Index: It shows how much the price of the crypto is expected to swing up and down in the future.

By looking at all this info together, you can get a better idea of what’s happening in the crypto market and make more informed trading decisions.

Options Trading

Deribit is one of the best options trading crypto exchanges. It supports European-style options, meaning they can only be exercised at expiration. The platform facilitates trading in call and put options. The options are organized by expiration dates and strike prices. You can trade options using Bitcoin, Ethereum, and some altcoins and the platform supports both market and limit orders to control execution prices.

For newcomers to options trading, Deribit provides a comprehensive educational section. The free Deribit Options Course includes 97 lectures with quizzes to test trading knowledge, more than 8 hours of video and readable content, and a dedicated Telegram channel for subscribers.

Trade Crypto Futures on Deribit

The Deribit platform is also the best futures exchange. It offers both perpetual and traditional futures contracts.

Perpetual futures on Deribit do not have an expiry date. They use a funding mechanism to keep their price close to the index price. This funding rate is a payment made between long and short traders every eight hours. If the perpetual contract price deviates too much from the index, the funding rate becomes significant, influencing traders to push the price back toward the index.

Traditional futures, on the other hand, have specific expiry dates. You can select contracts that match your trading horizon, allowing for more predictable trading strategies.

Deribit allows traders to use either cross-margin or isolated margin modes. 

• Cross-margining uses all the available balance to avoid liquidation, making it useful for more experienced traders managing large positions. 
• Isolated margining limits the margin to the amount allocated to a specific position, providing better risk management for individual trades.

Deribit has a maximum leverage of up to 50x for Bitcoin futures and Ethereum futures contracts.

The Deribit exchange also offers different order types. Stop-and-take limit orders help in executing trades at predefined prices, providing a safety net against unfavorable price movements. 

Trailing limit orders adjust the stop price at a fixed amount below the market price, allowing traders to lock in profits while minimizing losses as the market moves.

Some other advanced order types are:

• GTC (Good-Til-Cancelled): This order stays active until it is completely filled or manually canceled. It is useful for keeping orders open until the desired price is reached, without needing to monitor constantly.
• FOK (Fill-Or-Kill): This order must be entirely filled immediately or it is canceled. It ensures full execution or no execution, which is helpful in fast-moving markets to avoid partial fills.
• IOC (Immediate-Or-Cancel): It is executed immediately, either partially or fully, with any unfilled portion canceled. It is ideal for quick execution without leaving any unfilled orders in the market.

It also supports a Portfolio Margin feature. Deribit Portfolio Margin helps you manage risk by looking at your whole portfolio instead of individual trades. This means you can use your capital more efficiently, potentially lowering the margin you need if your portfolio is well-balanced.

Deribit Insurance Fund

Deribit has an Insurance Fund for the derivatives market to cover losses from bankrupt traders. Bankruptcy happens when an account’s positions are liquidated, and the cryptocurrency in the wallet is not enough to cover the losses. When this happens, the balance of that cryptocurrency in the account is reset to zero by moving funds from the Insurance Fund to the account. Currently, it has over $110 million in insurance funds.

Deribit’s advanced real-time system usually reduces or closes traders’ positions before bankruptcy occurs. It uses a mixed Insurance Fund that includes all the currencies it uses. If one currency fund runs out, Deribit can use other Insurance Funds to cover losses. The funds are in BTC, ETH, USDC, and USDT.

Trading Bots with Deribit API

Deribit does not offer dedicated crypto trading bots, but you can use its API to use third-party popular trading bots such as 3Commas and Cryptohopper.

The API allows you to access Deribit’s trading platform programmatically, enabling you to automate your trading strategies and access real-time market data. With the API, you can place and manage orders, access your account information, and retrieve historical data.

The API supports both REST and WebSocket protocols. REST is used for more straightforward tasks such as retrieving account information and placing orders. WebSocket, on the other hand, is ideal for real-time data streaming, providing instant updates on market prices, trades, and order book changes.

Deribit Trading Fees

Deribit uses a maker-taker fee model, which means fees depend on whether your order adds or removes liquidity from the market.

• Maker: Adds liquidity by placing an order on the order book that waits to be matched. They get a rebate sometimes (negative fee).
• Taker: A taker order removes liquidity from the order book. These orders are executed immediately against existing orders in the order book.

Note: Deribit does not charge fees for spot trading. This means it offers zero fees for buying and selling crypto.

Deribit Futures & Options Fees

Note: For futures spreads executed as block trades, a fixed fee of 0.025% is charged for BTC and ETH futures and perpetual contracts, regardless of being a maker or taker.

Futures and options deliveries are charged an additional fee. The daily options and weekly futures are exempt from delivery fees.

Deribit Liquidation Fees

It is charged when your position is liquidated due to insufficient margin.

For BTC and USDC, liquidations incur an additional fee that is a percentage of the contract size. This fee is added to the insurance fund. For futures and perpetual contracts, the fee is 0.75%, with 0.70% added for taker orders. For options, the fee is 0.19%, with 0.16% added for taker orders.

For ETH, liquidations also have an additional fee. For futures and perpetual contracts, the fee is 0.9%, with 0.85% added for taker orders. For options, the fee is 0.19%, with 0.16% added for taker orders.

Deposit & Withdrawal Fees

• Deposits: Crypto deposits are credited after confirmation on the network. No fees for deposits.
• Withdrawals: Processed instantly if the hot wallet balance allows. Withdrawals may be delayed if the hot wallet needs replenishment from cold storage. Withdrawal fees depend on the network conditions.

Read the full Deribit fee structure here.

Deribit Supported Currencies & Countries

Deribit supports over 88 trading pairs, mainly in Bitcoin and Ethereum. It also supports some popular altcoins such as SOL, NEAR, DOGE, AVAX, MATIC, and more, but these have very limited liquidity compared to BTC and ETH, which account for almost 70-80% of the trading volume on the crypto exchange (according to Coingecko).

The Deribit trading platform is available in over 150 countries including Australia and the United Kingdom. However, it is restricted in certain jurisdictions such as:

• The United States
• Canada
• Iran
• Japan
• Myanmar

Check the full list of Deribit restricted countries. 

Deribit Payment and Funding Methods

Deribit supports BTC, ETH, and USDC for funding your account. You can transfer these coins from your external crypto wallet to your Deribit wallet through a blockchain network. 

Recently, Deribit has also collaborated with “Legend Trading” for a fiat-on-ramp. This means you can deposit over 41 fiat currencies, such as USD and EUR, into your Deribit account.

Deribit Customer Support

Deribit offers a few ways to get help with your account or questions about their crypto options and futures trading. Their main channel is through email. They have a support address at [email protected].

They also have a big library of helpful articles on their website. This covers things like how their contracts work, how their systems are built, and how to use their developer tools (API) if you’re a programmer.  They don’t want you to have to wait for an email answer if the information is already out there for you to find.

Another way to get help is through Telegram. Telegram is a messaging app kind of like Whatsapp. Deribit has channels on Telegram in English, Chinese, and Russian. This can be a good option if you want to talk to someone in real time and don’t mind using an app. They also have a community of users on Telegram so you might be able to get help from other traders as well.

Deribit Mobile App

Deribit offers a mobile app for trading cryptocurrencies on the go. It is available for both Android and iOS devices. The Deribit app has a 3.8/5 rating on the Play Store and 5/5 on App Store. This app lets you trade options and futures. 

If you’re familiar with Deribit’s website, the app is designed to be very similar. This means if you already know how to trade on the Deribit website, you should be able to pick up the app quickly.

The app is built for both new and experienced traders. It has a clear and easy-to-use interface so you can easily find the information you need to make trading decisions. They also have a bunch of advanced features built-in for experienced traders, like different order types, tools to track market trends, and even a way to test out your trades before you risk real money.

One of the big benefits of the app is that it gives you real-time market data. This means you can see exactly what’s happening in the market right now, which can be important for making quick decisions. The app also lets you monitor your open positions and account balance so you can keep track of how your trades are doing.

Alternatives: Deribit vs Bybit vs Binance

As discussed above, Deribit is best for futures and options trading. Therefore, some of the best Deribit alternatives are Bybit and Binance. Here is a quick Deribit vs Bybit and Deribit vs Binance comparison:

What We Didn’t Like About Deribit

While Deribit has many strong features, there are a few areas where it falls short. 

One major issue is the lack of liquidity in the spot market. This means that buying and selling large volumes of assets can be difficult because there aren’t enough buyers or sellers available at any given time. This can lead to higher costs and price slippage when trading.

Another drawback is the absence of fiat off-ramp options. You cannot convert your cryptocurrencies back into traditional currencies like USD or EUR directly on the platform. This can be inconvenient for those who want to cash out their earnings or move their funds to a bank account.

Deribit also lacks passive earning features such as staking and lending. These features are popular on many other exchanges like Bybit and Binance because they allow you to earn interest or rewards on your holdings without actively trading. The absence of these options means that users miss out on potential earnings and benefits that they might find elsewhere.

The platform is mainly known for trading Bitcoin and Ethereum options. While these are the two most popular cryptocurrencies, the lack of support for a wide range of altcoins can be limiting. Traders looking to invest in or trade other cryptocurrencies will find their options restricted on Deribit.

Additionally, Deribit is not available in major financial hubs like the United States and Canada. This is a significant limitation because these are large markets with many potential users. The platform also does not hold any major licenses in these jurisdictions, which restricts its ability to operate there. For users in these regions, this means having to look for alternative exchanges that are compliant with local regulations. For Canadians, you can read our Shakepay review.

How to Get Started on Deribit?

Step 1: Sign Up on Deribit

First, open the Deribit website. You will see a “Create Account” button at the top right corner of the homepage. Click on it. 

A form will appear asking for your email, password, and country of residence. Fill in these details. Make sure to choose a strong password. 

After filling out the form, click on “Register”. You will receive an email to confirm your account. Open your email and click on the confirmation link.

Step 2: ID Verification

Once your account is confirmed, you need to verify your identity. This is called KYC (Know Your Customer). Log in to your account and go to the “Verification” section by clicking on your profile at the top right corner. 

You will see an option for “Verify Account”. Choose between individual or institutional accounts. You will be asked to provide some personal information and upload identification documents. Follow the instructions carefully. It usually takes a short time for your ID to be verified. You also need to upload a picture of your ID card or passport, and a selfie.

Step 3: Deposit Cryptocurrency

After your account is verified, you can deposit cryptocurrency. Go to the “Deposit” section, which you can find in the same “My Account” dropdown menu. You will see a list of supported cryptocurrencies. Choose the one you want to deposit. 

Deribit will generate a wallet address for you. Copy this deposit address and use it to send cryptocurrency from your personal wallet or another exchange. Once the transaction is confirmed, the cryptocurrency will appear in your Deribit account balance. Depositing funds may take a few minutes to an hour, depending on the network speed.

Step 4: Start Trading Crypto

Now, you are ready to start trading. Deribit offers futures and options trading. Let’s start with the futures market. To access the futures trading platform, click on the “Futures” button at the top of the page. Now, choose your desired perpetual futures contract, let’s say BTC-perpetual. Click on it.

You will be taken to the futures trading interface. Here, you will see the order book, trading chart, and your order options. On the left side, you can also switch the cryptocurrency pair you want to trade. 

You will find the order entry form on the right side. You can place a market order, limit order, or stop an order by filling in the details and clicking “Buy” or “Sell”. Make sure to review your order before placing it.

If you want to trade options, go back to the “Options” button. The options trading interface is similar to the futures one. You will see the order book, trading chart, and order entry form. On the left side, choose the options contract you want to trade. 

Options trading allows you to buy or sell calls and puts. To place an order, fill in the details in the order entry form and click “Buy” or “Sell”. Options trading can be a bit more complex, so take your time to understand how it works before trading.

Final Verdict

In conclusion, our Deribit review highlights that this platform is a strong contender for those interested in crypto derivatives and leverage trading. With its robust features, high security, and advanced trading tools, Deribit caters well to both institutional and retail traders. 

While there are some drawbacks, such as limited spot market liquidity and the absence of fiat off-ramp options, the overall performance and security measures make Deribit a reliable choice for trading futures and options. 

Deribit Exchange Review: FAQs

Can I trade on Deribit without KYC?

No, you cannot trade on Deribit without completing the KYC (Know Your Customer) process. KYC is mandatory for all users on the platform. This ensures that Deribit complies with international regulations aimed at preventing fraud and money laundering. 

Is Deribit available in the USA?

No, Deribit is not available to users in the USA. The platform restricts access to several jurisdictions, including the United States, due to regulatory reasons. This means that residents and citizens of the USA cannot create accounts or trade on Deribit. If you are based in the USA and looking to trade crypto, you can read our Coinbase review.

Is Deribit a good exchange?

Yes, Deribit is widely regarded as a good exchange, especially for those interested in trading crypto derivatives like futures and options. It offers a user-friendly interface with a variety of tools to help traders optimize their strategies, such as the Position Builder and Deribit Metrics. 

Additionally, Deribit has strong security measures, including two-factor authentication and IP pinning, to protect user accounts. However, it does have some limitations, such as a lack of staking services and fiat withdrawal methods.

What is the minimum deposit for Deribit?

Deribit does not specify a fixed minimum deposit requirement for cryptocurrencies. While there are no specific deposit limits, we recommend depositing at least 0.001 BTC for a better trading experience. 

How much can you withdraw from Deribit?

Deribit permits users to withdraw a maximum of 200 BTC daily. Withdrawals are processed immediately, provided the hot wallet has sufficient funds. However, if the hot wallet requires additional funds from cold storage, there could be a delay.