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Review of Deribit Exchange 2022

Deribit is a crypto derivatives exchange that offers high leverage trading: 100x for Bitcoin futures and 50x for Ethereum futures. You can place orders using multiple order types, including perpetual swaps, portfolio management and automated trading.

In this Deribit review we will go over some of the core features and examine its fees, trading features and customer service. This will allow you to decide if Deribit is right for your needs.

Deribit: A Quick Exchange Overview

Deribit is headquartered in Panama and was founded in 2016 by John Jansen, CEO, and Sebastian Smyczynski, 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 does not have a regulatory body in the United States or Europe. This can be a problem for users. There is always a change in cryptocurrency and the company may find itself in conflict with regulators.

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 provides a sophisticated trading dashboard. You can find all the trading options and account options on the top of the website. Although the dashboard may seem overwhelming to beginners, experienced crypto traders will find it easy to use.

Deribit provides a low-latency trade execution and a wealth of market data. This allows users to take advantage of real-time market events, and execute trades accordingly.

Deribit: Crypto Derivatives and Options

Deribit lets users trade derivatives, such as perpetual contracts and futures, and options on Bitcoin and Ethereum.

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 allows users to execute block trades on these cryptos (block trades are large transactions that are privately negotiated and executed away from the open market).

Deribit: Registration Process

Opening a Deribit account is easy: Enter your full name and email address and create a password. You must verify your account using a Know Your Customer (KYC), and provide additional information to enable you to trade. These include your address and country of residence, as well as a photograph of a government-issued document such a passport or ID card.

Note: Deribit offers two types of account: Individual and Corporate.

Individual account can be created by submitting an identity document, which will be reviewed within two business days.

Corporate accounts will need to go through more KYC (anti-money laundering), checks in order to give more information about their business. 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 has a maker/taker fee system. This means that makers, who provide liquidity to a market by placing orders, are charged lower fees than takers who take liquidity off the exchange.

Trading Fees:

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%
USDC Perpetuals 0. 00% 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

Delivery Fees

Deribit will charge a fee for futures and options delivery. Delivery fees are not charged for weekly and daily futures.

BTC/ETH/SOL Weekly Futures 0.0%
BTC/ETH/SOL Futures 0. 025%
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)

Liquidation Fees

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%
Options 0. 19%
ETH and SOL
Futures and Perpetuals 0.9%
Options 0. 19%

Deposit and Withdrawal Fees

You can only withdraw and deposit cryptocurrencies. Deribit does not charge any deposit fees, but withdrawal fees will be based on the current state each blockchain.

How Safe is Deribit? Is it Possible to Hack It?

Deribit keeps 99% of users’ crypto funds held in cold storage in vaults with different bank safes. Users can use various security protocols to create 2FA (two-factor authentication), and IP pin.

The exchange has an insurance fund which is maintained by liquidation fees. This fund ensures that the winning party in a trade is paid and the losing party does not go bankrupt. The insurance fund can assist the losing party if they have negative equity after a trade.

Deribit: Customer Support and Customer Satisfaction

Customers can contact Deribit’s customer service in three ways: email, the Help Center and support tickets.

Overall Deribit is a trusted exchange. 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 rapidly changing and it’s possible that unregulated crypto firms and exchanges might clash with new regulations. 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 may not be the best choice since it offers a lot of complex financial instruments. However, if you are interested in giving it a shot, you can create a demo account to test out all of the trading features and real-time market markets. The only difference is that the fake money will be used.

On one hand, Deribit is a platform for derivatives that provides high leverage on Bitcoin futures and Ethereum futures.

Frequently Asked Questions FAQ

How many cryptocurrencies does Deribit support? : Deribit supports only Bitcoin, Ethereum and Solana.

Is Deribit Suitable For Beginners? For those who are new to derivatives, it is important to understand that this complex field requires years of practice and study. Deribit is better suited for more experienced users.

How Many Countries Does Deribit Allow? : Deribit can be used by most users around the world, except for 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? : Deribit does not allow cryptocurrency funding to accounts.

Can It Clash Against Regulatory Laws in the Future? Deribit doesn’t bother to comply with regulatory agencies despite offering complex financial products that use Bitcoin and other cryptocurrency. Only a few countries can use the services of the exchange, which includes the US, Japan and Canada.

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