Home / Bitcoin News /Deribit Exchange Review | 2019 Guide

Deribit Exchange Review | 2019 Guide

06 Mar 2019

What is Deribit?

Deribit is a web-based platform which offers trading services for futures and options on Bitcoin. Deribit was established in 2016 by CEO John Jansen, with its headquarters in Amsterdam, Netherlands.

Trading instruments

Deribit exchange is among the few exchanges which offer Bitcoin options and bitcoin futures. It also offers an insurance fund which is a reserve of BTC that can be used in the eventuality a trader goes bankrupt. Deribit allows you to leverage as high as 1:20.

Unfortunately, no altcoins are available.

Registration

No ID or documents are needed; you can sign up just by using an email address. Deribit doesn’t require any verification because its platform deals exclusively with Bitcoin.

Interface

This website does not have a very user-friendly design. On the left, you have the BTC Futures, BTC Options, Account, Insurance, and Help Tabs, while the rest of the screen being filled with rows of numbers and values. The interface can get confusing for new traders. The site is translated into seven languages.

Privacy and Security

Deribit exchange states that 90% of the Bitcoins are kept in cold wallets which are stored in numerous different bank vaults.

The platform also audits their accounts in real time and implements a unique liquidation engine which automatically closes accounts that are underfunded.

For a start, all communication with the Deribit server is conducted through an SSL connection.

Deribit also provides users the option to enable a two-factor authentication mechanism for their account. This feature is not activated by default, meaning that you will have to activate it by yourself when you log in.

A user account has various other security features that can be enabled by accessing the account settings. One of such options is IP pinning, a feature which terminates your sessions if someone tries to log into your account from another IP when you are logged in.

Exchange Fees

Deribit employs a “maker-taker” fee structure, in which makers get a lower fee (or even a rebate) than takers.

In addition to the $10 for a futures contract, a 0.02% rebate is charged for the makers and a 0.05% fee is applied to takers. Below is a table that features the prices for futures, perpetual futures contracts, and options.

Fee TypeFuturesPerpetual FutureOptions
Maker0.02% (Rebate)    0.025% (Rebate)0.04%
Taker0.05%    0.075%0.04%
Delivery0.025%    0.025%0.02%
Liquidation0.15%    0.15%0.15%

 

Deribit applies a fee limit to Bitcoin options. It can never be more than 20% of the option’s price. The liquidation fees are the ones charged for liquidation orders which are executed for accounts where their margin has been used up. When this happens, the bulk of the fees are put in the insurance fund (0.15%).

Deposit & Withdrawal

BTC is the only deposit and withdrawal option that you have for your account.

Deribit exchange does not apply any fees for making a deposit into your account. However, a fee is incurred when you withdraw. It is based on the current blockchain mining fee of Bitcoin.

These fees may vary depending on the processing of the withdrawal, as Deribit will charge the fee that applies the best to the chain. Depending on transaction batching, it could be slightly higher or slightly lower than the market price.

Customer Support

Deribit allows customers to contact its support team by using a range of specific emails that can be accessed via their contact page. Also, users can log into their account and click on the box located on the lower right-hand side of the account page to talk to a staff member in the live chat box.

They can also join the Telegram support channel in order to directly contact the office. They also have an active Twitter account.

Should you have other queries you can browse through their extensive FAQ section that features answers to a wide variety of questions.

Conclusion

The Deribit exchange is one of the few platforms on the market, that allows you to trade in Bitcoin derivatives instead of the actual coin. While it brings a new list of opportunities, trading Bitcoin derivatives is still a novel concept and, therefore, it has a small trading volume. Deribit is not ideal for novice traders, or for those looking for altcoin pairs.

Source From : Coindoo News

© CoinJoker 2019 | All Rights Reserved.