There are now many different cryptocurrency trading platforms live online, providing crypto traders with a wide variety of choice. One key element missing from the crypto trading environment, however, is the ability to trade Bitcoin options.
Crypto entrepreneur John Jansen, frustrated with the lack of crypto option trading platforms, has recently launched Deribit, which is the first and only Bitcoin options trading platform in existence. The Deribit platform appears to be the fastest, most technically capable crypto exchange to date, and offers vanilla options as well as futures.
In this article, we’ll take a look at Deribit and find out what it offers to help you determine whether it’s the right trading platform for you.
What Is Deribit?
Deribit is a new Bitcoin options and futures exchange that is currently the only option for individuals seeking to trade vanilla options on Bitcoin in addition to futures with margin. The Deribit platform features plain European style cash settled options on the Deribit BTC index, with margin, and also provides traders with the opportunity to trade BTC futures on the same index with up to 20x leverage.
Deribit is able to facilitate hundreds of transfers per second from each individual account, and streams all data on the platform in real time. Interestingly, the Deribit platform is built on the same ERLANG/OTP stack that is used for Whatsapp, allowing for extremely low latency and a huge amount of concurrent users.
The Deribit platform also boasts the lowest trading fees in the cryptocurrency industry, at just 0.01% for orders that take liquidity, and no fees whatsoever for orders that add liquidity. Deribit also funds a 25 Bitcoin insurance account for protection against position bankruptcies as an attempt to minimize socialized losses.
The Deribit platform delivers low options volume for most day traders, but functions smoothly enough to function as an adequate solution for individuals seeking to manage a Bitcoin portfolio. The user interface is extremely slick, and if Bitcoin options tradings kicks off Deribit stands to be a market leader.