Cryptocurrency Derivatives
Cryptocurrency derivatives are fast becoming some of the most popular financial products. They allow investors to hedge spot trades, utilise leverage and speculate on market shifts. It’s perhaps unsurprising then that trading volumes have soared. In this article, we provide definitions and examples of the top cryptocurrency derivatives on the market. We also list the best exchanges and platforms alongside a guide to getting started for beginners.
Crypto Brokers
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1
Plus500USTrading in futures and options involves the risk of loss and is not suitable for everyone. -
2
NinjaTrader -
3
Interactive Brokers -
4
eToro USAeToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation -
5
CEX.IO -
6
Nexo
Here is a summary of why we recommend these brokers in May 2026:
- Plus500US - Plus500’s Micro-Bitcoin and Micro-Ethereum futures only allow traders to scratch the surface of crypto trading with bets on the two most popular digital assets. Importantly, you cannot buy and own the cryptos with these derivative contracts - you are speculating on their price.
- NinjaTrader - You can get exposure to micro Bitcoin futures through the CME Group’s centralized exchange, which is highly regulated by the US CFTC. Micro contracts allow you to trade a fractional size of one Bitcoin, giving you more risk control and order flexibility.
- Interactive Brokers - IBKR lets you purchase and hold Bitcoin, Bitcoin Cash, Ethereum, and Litecoin at competitive commission rates and without needing a crypto wallet. Additionally, there is a range of other diverse assets to explore, such as crypto indices like the NYSE Bitcoin Index, as well as futures contracts like the BAKKT Bitcoin Futures.
- eToro USA - eToro US offers modest tradeable cryptoassets following a September 2024 settlement with the SEC regarding unregistered securities. eToro has a 1% buying/selling fee added to the spread. Additionally, there are coins available through the broker’s proprietary wallet service. You can also practice your crypto strategies easily by switching between live and demo mode. Crypto asset investing is highly volatile and unregulated. No consumer protection. Tax on profits may apply.
- CEX.IO - CEX.IO offers hundreds of popular cryptocurrencies including big names like Bitcoin, Ethereum and Litecoin. The trading platform is well-designed with sophisticated charting and analysis tools, including 50+ in-built indicators. Traders can also reduce their monthly volumes through the tiered pricing structure.
- Nexo - Nexo offers trading on an impressive suite of around 70 tokens, including Bitcoin. Digital assets can be bought, sold and swapped directly on the exchange or traded in over 500 pairs. Digital assets can also be used as collateral for fiat loans or used to generate passive income with the ‘smart staking’ tool or from interest earned via peer-to-peer loans.
Plus500US
"Plus500US stands out as an excellent choice for beginners, offering a very user-friendly platform and access to the Futures Academy to enhance trading skills. Its powerful tools and reliable service helped it scoop second place in DayTrading.com's annual 'Best US Broker' award."
Michael MacKenzie, Reviewer
Plus500US Quick Facts
| Coins | MicroBitcoin, MicroEthereum |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | WebTrader, App |
| Minimum Deposit | $100 |
| Regulator | CFTC, NFA |
| Account Currencies | USD |
Pros
- The straightforward account structure, pricing model and web platform offer an easier route into futures trading than rivals like NinjaTrader
- Plus500 is a publicly traded company with a good reputation, over 24 million traders, and a sponsor of the Chicago Bulls.
- The trading app provides a terrific user experience with a modern design, a clean layout and mobile-optimized charts
Cons
- While Plus500US continues to broaden its investment offering, it's currently restricted to around 50+ futures with no stocks
- Despite competitive pricing, Plus500US lacks a discount program for high-volume day traders, a scheme found at brokers like Interactive Brokers
- The proprietary platform is user-friendly but lacks advanced technical analysis tools found in third-party solutions like MetaTrader 4
NinjaTrader
"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."
Christian Harris, Reviewer
NinjaTrader Quick Facts
| Coins | BTC |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | Floating |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | NinjaTrader Desktop, Web & Mobile, eSignal |
| Minimum Deposit | $0 (live trades must meet intraday margin minimums, e.g., $50 to trade micro contracts) |
| Regulator | NFA, CFTC, CySEC |
| Account Currencies | USD, EUR, GBP, CAD, AUD |
Pros
- NinjaTrader's ecosystem gives traders access to thousands of add-ons and applications from developers across more than 150 countries, covering indicators, strategies, and custom tools that go well beyond what the platform ships with natively
- The market replay function is a standout feature — you can download tick-by-tick historical data, rewind to any specific date, and interact with it as if trading live, making it genuinely useful for both strategy testing and real-world practice
- Nano contracts — one-hundredth the size of standard contracts — allow traders to size positions with precision and manage risk at a much smaller scale, a meaningful advantage for those building positions gradually
Cons
- NinjaTrader was fined $250k in 2025 for failing to implement an adequate anti-money laundering (AML) program and for supervisory failures.
- NinjaTrader was acquired by Kraken in May 2025, and while it continues to operate independently for now, traders who value long-term stability may have reservations about how the platform's direction and pricing could shift under new ownership.
- Traders looking for fundamental data research will need to look elsewhere — the platform is built almost entirely around technical analysis, leaving a meaningful gap for anyone who factors company or macro fundamentals into their decision-making.
Interactive Brokers
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Interactive Brokers Quick Facts
| Coins | BTC, LTC, ETH, XRP |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | 0.12%-0.18% |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower |
| Minimum Deposit | $0 |
| Regulator | SEC, FINRA, CFTC, NFA, CIRO, FCA, CBI, ASIC, SFC, SEBI, JFSA, MAS |
| Account Currencies | USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF |
Pros
- While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.
- IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries, most recently the Saudi Stock Exchange.
- Interactive Brokers was named 'Best US Broker' for 2025 by DayTrading.com, recognizing its long-standing commitment to US traders, ultra-low margin rates, and global market access at minimal cost.
Cons
- You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
- IBKR was fined $11.8m by the US OFAC in 2025 for providing services in sanctioned jurisdictions. It was also fined $125k by FINRA in 2025 for municipal bond disclosure failures.
- Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
eToro USA
"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."
eToro USA Quick Facts
| Coins | BTC, ETH, BCH |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | BTC 0.75% |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | eToro Trading Platform & CopyTrader |
| Minimum Deposit | $100 |
| Regulator | SEC, FINRA |
| Account Currencies | USD |
Pros
- The broker's Academy offers comprehensive learning materials for beginners to advanced-level investors
- eToro USA Securities is a trustworthy, SEC-regulated broker that is a member of FINRA and SIPC
- Investors can access Smart Portfolios for a more hands-off approach, covering a range of sectors and markets such as renewable energy and artificial intelligence
Cons
- Average fees may cut into the profit margins of day traders
- The proprietary terminal doesn't support trading bots and there are no additional stock market analysis tools
- There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos
CEX.IO
"CEX.IO continues to serve a range of crypto investors looking to buy, sell, trade, hold and earn with low fees. The tiered pricing structure will appeal to active traders while rookie investors will enjoy the straightforward platform interface and excellent education."
CEX.IO Quick Facts
| Coins | ZRX, 1INCH, AAVE, BTC, BCH, ADA, LINK, COMP, ATOM, DAI, DOGE, ETH, GUSD, ICP, LTC, LRC, MATIC, MKR, DOT, SHIB, SOL, XLM, SUSHI, SNX, USDT, XTZ, USDC, UNI, WBTC, ZIL |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | 0.15% maker & 0.25% taker (Standard) |
| Crypto Lending | Yes |
| Crypto Staking | Yes |
| Platforms | Own |
| Minimum Deposit | $20 |
| Regulator | NMLS, GFSC, Bank of Spain, CySEC, Lithuanian Centre of Registers |
| Account Currencies | USD, EUR, GBP |
Pros
- The range of 200+ cryptocurrencies is competitive and will serve more experienced traders
- The proprietary terminal features an advanced charting package from TradingView, including 50+ technical indicators
- There's a wide range of global payment methods available including PayPal
Cons
- The broker has limited regulatory oversight
- Deposit and withdrawal fees are relatively high, including 0.3% + $25 for SWIFT withdrawals
- The Exchange Plus platform delivers a cluttered interface compared to competitor platforms
Nexo
"Nexo gives crypto traders the capability to trade, invest, lend and borrow digital assets in one place, and it’s especially good for its credit functions that pay out very high yields to lenders. However, its fees are relatively high and many day traders will prefer a more tightly regulated crypto broker."
Nexo Quick Facts
| Coins | BTC, ETH, NEXO, USDT, USDC, AXS, RUNE, MATIC, DOT, APE, AVAX, KSM, ATOM, FTM, NEAR, BNB, ADA, SOL, XRP, LTC, LINK, BCH, TRX, XLM, EOS, PAXG, UNI, DOGE, MANA, SAND, GALA, SUSHI, AAVE, CRV, MKR, 1INCH, DAI, USDP, TUSD |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | N/A |
| Crypto Lending | Yes |
| Crypto Staking | Yes |
| Platforms | Nexo Pro |
| Minimum Deposit | $10 |
| Account Currencies | USD, EUR, GBP |
Pros
- Nexo’s crypto staking and credit features support crypto lending and borrowing, and the yields lenders receive are among the best going
- Value-add tools integrated into the trading platform including social media analysis and newsfeeds by asset
- Traders can access perpetual futures to open long or short positions on crypto assets, increasing strategic opportunities
Cons
- Although Nexo has registered with some reputable watchdogs, it is riskier to trade with than established crypto brokers like AvaTrade and Vantage
- Very few educational resources are available, reducing its appeal to beginners who can find more helpful resources at category leaders like eToro
- High deposit and withdrawal fees for cards and e-wallets will price many traders out of the most convenient payment methods
Cryptocurrency Derivatives Explained
The term ‘cryptocurrency derivative’ is an umbrella for a collection of different financial contracts that derive their value from the crypto they are based upon. A crucial characteristic of a derivative contract is that investors don’t own the underlying crypto, meaning an investor can speculate on the future value of Bitcoin, for example, without actually buying BTC and holding it in a wallet. The terms of a contract vary depending on the type of derivative.
Cryptocurrency-Related Derivatives
Futures & Options
Futures and options are contracts that allow a party to purchase an asset at a set price in the future. In a futures contract, there is an obligation to purchase at the agreed price, whereas an options contract gives the holder the choice.
Futures and options can be valuable cryptocurrency derivatives securities since the price agreed in the contract might not match the market price at the time. For example, if I enter into a futures contract to buy Bitcoin (BTC) at $40,000 in one month’s time, yet when the contract expires the market price is now $50,000, I can make a profit by reselling the Bitcoin at the new market price.
CFDs
CFDs are contracts for the difference in price between the buy and sell points.
For example, if I open a long position on Bitcoin with the price of $20,000 and the price rises, I will profit from any rise – but if the value falls to below $20,000 I would begin to make a loss on the trade.
They enable cryptocurrency derivatives traders to speculate on movements in price without purchasing the underlying asset.
In the world of cryptos, this is a useful advantage since there is no requirement to hold tokens in e-wallets.
High-profile crypto exchange hacks have meant that protecting your tokens from theft is vital. With CFDs, traders can benefit from the same market movements, but with reduced security issues. CFDs also allow traders to short the crypto market and speculate on decreases in the value of tokens, unlike the spot market.
Perpetual Swaps
Perpetual swap markets cover cryptocurrency derivatives that are similar to futures contracts, but with no expiry date. They are perpetual, in that they can be held indefinitely without an obligation to buy/sell.
The lack of an expiry date means that a contract price could easily diverge from the spot market price. The funding rate prevents this from happening by introducing a fee or rebate for holding a position, depending on whether they’re long or short. For example, if the perpetual swap contract is trading above the price of spot currency, the funding rate would be positive.
This means long position holders would have to pay short position holders, which encourages the opening of short positions and discourages long positions. When more short positions are opened, this will drive the price down to become more in line with the spot price. The same works in the opposite direction if the perpetual swap is below the spot value. Short traders would pay long, and the price of the swap would rise.
Market Analysis
The market for cryptocurrency derivatives is booming. A recent report by the Carnegie Mellon University of Bitmex, one of the largest exchanges in the industry, found that on average, volumes traded in the cryptocurrency derivatives market exceed that of the spot market by a factor of five.
It’s easy to see why they’re so popular. Cryptocurrency derivatives can be used to hedge against price movements in the spot market. So for every spot trade, there’s a multitude of derivatives that can complement and decrease the risk of downside. But, this is true of fiat derivatives too, so what makes crypto so special? The Carnegie Mellon study revealed that crypto traders tend to be active 24 hours a day, regardless of the timezone they’re in. Wall Street tends to trade between 9:30 am and 4:00 pm EST while crypto derivatives are being traded long into the night.
There are also fewer hoops to jump through when you’re looking to trade crypto. Many exchanges do not require identity checks (Know Your Customer or KYC checks). This means anyone with an email address and cash can trade, opening the market up to a larger customer base.
The 24-hour, unrestricted nature of blockchain has created a billowing derivatives market – and the action is unlikely to stop anytime soon.
Regulation
In the UK, the FCA has banned cryptocurrency derivatives, stating the volatility of the underlying asset as the reason. Despite this, buying and selling the underlying asset, the crypto tokens themselves, is still legal.
Many of the top cryptocurrency exchanges restrict derivatives trading for US citizens, in particular, Bitmex. Many of the top brokers have cited regulation as the reason for restrictions.
In Europe, there’s a lack of clarity about where cryptocurrencies sit in the current MiFID II regulation. However, it’s understood that trading on derivatives is acceptable and many of the biggest exchanges do accept European traders. The same is true of Canada, Australia, and beyond.
How To Start Trading Cryptocurrency Derivatives
To start trading cryptocurrency derivatives, you’ll first need to select a platform. Some of the top Bitcoin exchanges that offer derivatives include Bitmex. Kraken also has a separate platform that offers futures and options trading on cryptos.
When looking for the best exchanges, it’s important to consider the following factors:
- Leverage – In the case of Bitcoin, some of the exchanges above offer leverage up to 100x your initial deposit. For tokens with a lower market cap, leverage is usually less. Consider how much leverage you’ll require for your trading strategy. Remember that trading on margin increases the risk involved, which can result in losses beyond your deposit amount.
- Simulated trading – Many of the top exchanges offer the option to practice with a simulator or demo account. This can be a useful starting point for those new to trading cryptos.
- Security – When trading anything crypto related, it’s always important to consider the security of your investments. Look for an exchange that has never been hacked or prioritises the safety of client funds. Always ensure you have 2FA enabled on any account you hold, where possible.
- Regulation – Crypto derivative exchanges are not always held to the same standard of regulation as fiat currency brokers and they may not be registered with the same licensing bodies. Despite this, there are some indications that an exchange is legitimate. Look for those registered with the AUSTRAC in Australia, FINTRAC in Canada, or the FSA in Japan, for example.
Final Word
Trading crypto derivatives is increasingly popular – and it’s easy to see why. The ability to hedge, utilise leverage and trade 24/7 can be beneficial to a trading strategy. But globally, regulation is tightening due to the volatility of the crypto market itself. The next few years will be crucial for understanding the longevity of these financial assets.
FAQ
What Are Cryptocurrency Derivatives?
Cryptocurrency derivatives are financial contracts that derive their value from the cryptocurrency they are based on, such as Bitcoin. They allow traders to profit from price movements without owning the underlying asset. Examples of cryptocurrency derivatives include CFDs, futures and options.
Why Have The FCA Banned Cryptocurrency Derivatives?
The FCA has banned cryptocurrency derivatives for UK retail traders, due to the volatility of the market and the fact that a reliable valuation of a token’s price cannot easily be determined. Despite this, crypto trading on the spot market is still permitted.
Where Can I Trade Cryptocurrency Derivatives?
There are many brokers and exchanges globally that offer cryptocurrency derivatives trading. Some of the top brokers include Bitmex.
Why Would I Want To Trade Cryptocurrency Derivatives?
There are lots of reasons why crypto derivatives can be beneficial to your trading strategy. In particular, derivatives allow you to go long or short on a trade. In the spot market, you can only profit if the price goes up. However, when you open a short position using a derivative, you’ll profit from a decrease in price, allowing you to hedge your bets and manage risk.
Do I Need An E-Wallet For Cryptocurrency Derivatives Trading?
No – you don’t need to store your crypto derivatives in an e-wallet, unlike spot cryptocurrency. This is because a derivative is a contract with the exchange and there is no underlying asset to store.