Bitcoin Futures Guide was created to provide a reference for products and services related to Bitcoin trading and investing. Keep up to date on all the news affecting bitcoin markets for interest of everyone in the bitcoin community.
Now there are three strong products on the market for perpetual crypto contracts: BitMEX, Deribit, and CryptoFacilities.
All three of them have the rate based on 8-hours. There are advantages and disadvantages of the approaches. BitMEX gives you fixed rate for 8-hours which is good certainty. But Deribit and CryptoFacilities give the convenience and efficiency of continuous payout of the rate.
Crypto Facilities as a London based exchange brings high quality tech and product design to the table. And unlike BitMEX and Deribit who only offer Bitcoin, Crypto Facilities allows you to send ETH, LTC, BCH, and XRP to trade the contracts.
The benefit of a Perpetual Futures is that you do not have to worry about "rolling" the contract at expirations, you just hold the position and often you can earn net interest on the carry.
Don't get me wrong, everyone loves the BitMEX XBTUSD perp. But frustration over choppy index, rejected orders, and mega lag has left many traders begging for real competition to BitMEX's perpetual swap. And with OKex barely staying together with their constant issues of rollback, manipulations, and bailouts, there is not really any other game in town.
But have no fear, btc Futures & Options exchange Deribit has released their answer to the smash hit bitcoin derivatives product the XBTUSD BitMEX Perpetual Swap ("perps").
For a bit of background: BitMEX's perpetual swap is basically a Futures that does not expire, and instead has cash flow disbursements every 8 hours which dynamically adjust to anchor the price to spot. It does about $4-5 Billion in notional volume these days.
Traders love it, you can earn BTC cash flow and trade on 100x leverage, with excellent liquidity, spreads usually never more than a tick wide. But one odd part of it is that the swap payment is totally discreet, as in, it pays out at one point in time to all the open interest, every 8 hours...pretty arbitrary, right?
Deribit's model uses an 8 hour interval as well, but instead of a discreet payout, the payout occurs continuously, which leads to a smoother adjustment mechanism to anchor the swap to spot.