As the hype around spot Bitcoin ETF continues to grow, Bitcoin futures trading has seen significant adoption. Do you wish to trade derivatives? Well, keep reading this guide to discover the best exchanges for trading Bitcoin futures in 2024.
What Should You Consider When Selecting a Futures Exchange?
Before you start trading Bitcoin futures, there are several factors that you need to keep in mind when selecting a crypto exchange. One of them is order execution. You want to choose a trading platform that executes trades as quickly as possible. Moreover, consider the trading fees imposed by various exchanges and select the one with low charges because the goal is to retain most of the profits. Other factors to consider are customer support, security, and geographical availability.
Top Crypto Exchanges for Trading Bitcoin Futures
Coinbase
Founded by crypto gurus Fred Ehrsam and Brian Armstrong in 2012, Coinbase is a reliable crypto exchange that provides a wide range of services, from buying to selling and storing digital assets. Through Coinbase Pro, an advanced trading platform with all the necessary features, you can trade Bitcoin futures. What’s more, experienced traders with balances of up to $250,000 are insured by the FDIC.
Advantages and Disadvantages
Advantages
- Coinbase offers access to multiple educational materials.
- Supports several order types.
- Offers FDIC insurance
- You can trade on a futuristic trading platform
Disadvantages
- US customers cannot trade perpetuals.
- UK clients are blocked from trading derivatives.
Kraken
Kraken is among the oldest crypto exchanges, having been launched in 2011. The California-based crypto exchange offers a user-friendly interface, making it easy for clients to navigate. Moreover, Kraken comes with comprehensive trading tools that allow traders to analyze the market more accurately in order to place profitable trades.
When trading Bitcoin futures on this crypto exchange, you can optimize your strategy using advanced features like take profit, stop loss, reduce-only, and immediate or Cancel.
Advantages and Disadvantages
Advantages
- Kraken offers demo accounts to allow traders to test their strategies before committing funds.
- It provides a mobile app for Kraken Pro to allow customers to trade on the go.
Disadvantages
- Kraken’s United Kingdom customers cannot trade futures.
- Unlike Coinbase, deposits in Kraken are not FDIC-insured.
OKX
Advantages and Disadvantages
Launched in 2017, OKX is a crypto exchange that gives futures traders access to leverage of up to 100x. Besides futures trading, OKX offers other services like crypto cloud mining, spot trading, and staking.
Advantages
- OKX lets you copy trades of experienced Bitcoin futures traders.
- Offers higher leverage than most of its rivals.
- The platform has a futures Grid trading bot.
Disadvantages
- OKX does not support fiat deposits.
- US traders are blocked from accessing OKX.
Bybit
This Dubai-based crypto exchange offers various derivatives for users to trade. They include futures contracts, options contracts, and perpetual contracts. Bybit started its operations in 2018. Over the last five years, the exchange has provided customers with access to futuristic charting tools and technical indicators to enable them to make proper trading decisions. Moreover, Bybit offers educational materials to help customers understand crypto trading and risk management.
Advantages and Disadvantages
Advantages
- Bybit is available in over 200 countries.
- Supports several deposit methods.
- Offers demo accounts and trading bots.
- Provides high leverage of up to 100x.
Disadvantages
- US traders cannot access the Bybit platform.
Binance
Founded by Changpeng Zhao in 2017, Binance is the leading crypto exchange by trading volume. The trading platform has a presence in over 100 countries. Along with supporting futures trading, Binance lets users stake their tokens in exchange for yield. Moreover, you can participate in copy trading, crypto mining, and invest in soon-to-be-launched crypto projects.
Advantages and Disadvantages
Advantages
- Binance customers enjoy fast order execution due to the deep liquidity available on the exchange.
- The exchange gives access to learning materials.
Disadvantages
- American traders are restricted from trading futures.
- Binance supports limited methods for depositing fiat.
Conclusion
A few years ago, crypto users could only participate in Bitcoin spot trading. But today, they can increase their income by opening trades in the futures market, thanks to the crypto exchanges mentioned above. However, it is important to consider risks related to futures trading before committing your hard-earned money.
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