How to Make Money with Bitcoin Derivatives in 2020
Making money trading cryptocurrency has continued to evolve with new financial instruments coming into vogue all the time - right now, it’s Bitcoin derivatives that are starting to gain some serious traction.
The potential profit to be earned by trading Bitcoin derivatives are driving a new, huge demand for them which is fuelling the launch of many new trading platforms to cater for this trend.
What Exactly are Bitcoin Derivatives?
Bitcoin derivatives are agreements between two parties for a Bitcoin trade to be made at a specified future date, for designated amount and at designated price.
Derivatives can either be futures, which are derivatives that have to be executed according to the agreement, or options, which can be executed but don’t necessarily have to be.
Where Can Bitcoin Derivatives be Bought and Sold Profitably?
PrimeXBT
PrimeXBT lists a wide range of crypto derivatives and is the largest multi-asset margin trading platform in the world today following substantial growth in market share throughout the past 12 months.
Crypto-assets including BTC, ETH, LTC, EOS and XRP can be traded on the platform, as well as traditional assets like the world’s best stock indices, forex pairs and commodities.
Unlike other platforms, PrimeXBT charges a single flat rate of 0.05% on all trades which is lower than any other site that we’ve seen.
Coupled with this, the platform has never been hacked and has excellent security in place in order to protect from nefarious actors.
Deribit
Deribit is a platform that provides a solid range of crypto derivatives, but could do with polishing their services somewhat.
Bitcoin futures, options and perpetual swaps are all available at Deribit, and the platform provides one of the widest ranges for this class of instruments.
Although there is a wide range, some of the drawbacks noted at Deribit are a virtually non-existent support system and the poor reliability of their system which can often suffer from glitches.
It would be great to see Deribit iron out these issues, because apart from this they provide a solid offering to cryptocurrency traders.
In Conclusion
Trading cryptocurrency has always been one of the most profitable financial activities available, and now Bitcoin derivatives have become the newest and potentially the most profitable way to engage with crypto markets online.
PrimeXBT, Deribit and KuCoin all provide Bitcoin derivative trading, and are the largest and best platforms where traders can profit from this new trend.