Best Inverse Perpetual Contract Exchanges
Explore our top picks for the best inverse perpetual contract exchanges, tailored to help traders leverage market movements.
Summary: Inverse perpetual contracts are increasingly favored by advanced traders aiming to leverage their cryptocurrency holdings or protect their investment portfolio. Unlike traditional contracts, the valuation of inverse perpetual contracts is in the cryptocurrency itself, leading to profits or losses being settled directly in Bitcoin or other cryptocurrencies, instead of fiat currencies like the US dollar and stablecoins like USDT or USDC.
This article highlights the top 5 inverse perpetual contract platforms in the cryptocurrency arena. Our selection criteria include trading volume, security measures, user interface quality, and fee structures, ensuring you get a comprehensive look at the best options available.
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Best Inverse Perpetual Contract Platforms
In exploring inverse perpetual contract platforms, we evaluated over 15 exchanges, focusing on essential criteria like regulatory compliance, cryptocurrency variety, user interface, leverage capabilities, and funding options. Our curated list of the top 5 platforms stands out by offering detailed insights into their range of crypto derivatives, fee structures, liquidity levels, leverage possibilities, and unique offerings.
1. Bybit
Bybit is the premier destination to trade inverse perpetual contracts with its top-notch user interface, unmatched liquidity, and best-in-class security. Serving an international base in over 180 countries, Bybit offers the widest range of coin-margined contracts enabling a wide range of collateral options such as BTC, ETH, SOL, AVAX and hundreds of others. Esteemed crypto Twitter figures such as Hsaka and Pentoshi champion Bybit, contributing to its robust user community of over 25 million.
Bybit's distinction lies in its vast cryptocurrency offerings, with over 1,000 choices for spot trading and more than 300 for inverse perpetual contracts. Its competitive fees attract market makers and takers alike, with rates starting at 0.01% and 0.06%, respectively. Amidst a shifting landscape with Binance's retreat, Bybit's ascendance is recognized by leading analysts, underscored by a hefty daily trading volume exceeding $60 billion.
- Fee Structure: 0.01% for market makers, 0.06% for market takers, adaptable to market conditions.
- Available Assets: Extensive selection of over 1,000 cryptocurrencies for spot and 300+ for inverse perpetual contracts.
- Deposit Methods: Wide array of options including bank transfers, credit/debit cards, PayPal, Google Pay, Apple Pay.
- Available Leverage: Offers up to 100x leverage for inverse perpetual contracts.
2. Binance
Binance claims the second spot as a formidable contender in the inverse perpetual contracts arena. With an expansive selection of over 300 cryptocurrencies for spot trading and a presence in more than 150 countries, Binance appeals especially to institutional investors with its unmatched liquidity in major assets like Bitcoin, Ethereum, Solana, Celestia and even meme coins like PEPE and DOGE.
Binance stands out with its wide range of derivatives, featuring over 500 trading pairs and providing COIN-margined and USDT-margined futures contracts. The platform pioneered COIN-margined contracts in Q2 2020, offering settlement in cryptocurrency itself, which is advantageous in bull markets. ts fee structure begins at 0.02% for makers and 0.06% for takers, a bit above some rivals, but its vast selection and strong liquidity argue well for its utility.
- Fees: 0.02% for Maker Orders and 0.06% for Taker Orders.
- Available Assets: Offers over 500 cryptocurrency derivatives contracts, including COIN-margined futures, alongside more than 300 spot trading assets.
- Deposit Methods: Accepts bank transfers, crypto deposits, credit/debit cards, WeChat Pay, among other options.
- Available Leverage: Up to 25x leverage on futures contracts.
3. MEXC
MEXC is a top contender for inverse perpetual contracts, known on their platform as COIN-M contracts. Launched in 2018 and based in Victoria, Seychelles, it has attracted users from over 170 countries with its rich lineup of over 300 altcoins. MEXC's standout feature is its unparalleled leverage of up to 200x on more than 100 crypto assets, setting it apart from the competition.
The platform's futures trading is notable for its fast-growing volume, managing daily transactions over $15 billion. While its liquidity may not top the largest exchanges, MEXC still provides solid liquidity and tight spreads for key crypto pairs. Offering everything from spot and coin-margined trading to futures and crypto staking, MEXC is a favored platform for those looking for diversity in trading options and the thrill of high-leverage investment opportunities.
- Fees: Maker and taker fees at 0.02% and 0.06%, respectively.
- Available Assets: Offers over 200 derivative contracts for coin-margined trading and 300 spot crypto assets.
- Deposit Methods: Accepts USDT, BTC, USDC, and card payments.
- Available Leverage: Leads the market with up to 200x leverage for coin-margined contracts, appealing to traders after high-stakes strategies.
4. Gate.io
Gate.io earns its place as the fourth choice, specializing in only BTC-Margined inverse perpetual contracts, not supporting collateral in other assets like ETH or SOL for futures trades. It stands out for its vast collection of over 1,700 cryptocurrencies, appealing to those interested in various altcoins and futures trading. Notably, Gate.io is among the first to list emerging altcoins and memecoins, serving a global community in over 200 countries.
Although its liquidity may be lower than larger competitors, Gate.io's attractive fees, with maker rates at just 0.015% and taker rates at 0.05%, make it a favorable option for traders seeking diversity in crypto assets. However, traders should know that Gate.io operates offshore in Seychelles, positioning it outside the regulatory scope of jurisdictions that oversee platforms like Bybit and Binance.
- Fees: 0.015% for makers and 0.05% for takers.
- Available Assets: Broad selection of 1,700+ cryptocurrencies.
- Deposit Methods: Includes bank transfers, crypto deposits, and card payments.
- Available Leverage: Up to 100x leverage on BTC-margined futures contracts.
5. dYdX
dYdX leads the DeFi space for trading inverse perpetual contracts in a secure, non-custodial manner. Founded by Antonio Juliano, a Coinbase alum, dYdX boasts a remarkable nearly $700 million in daily trading volume. It's celebrated for low fees and solid liquidity, offering up to 20x leverage for traders starting with just $10.
Thanks to StarkWare's Layer 2 tech, dYdX enhances transaction speed, security, and privacy with zero-knowledge rollups, attracting over 25,000 traders. Its swift withdrawal feature, which sidesteps typical Layer 2 withdrawal holdups, together with backing from well-known investors like Brian Armstrong and Fred Ehrsam, solidifies dYdX's dominance in the DeFi sector.
- Fees: Offers low maker fees at 0.02% and taker fees at 0.05%.
- Available Assets: Hosts a diverse range of over 51 cryptocurrencies including ETH, BTC, SOL, and ADA.
- Deposit Methods: Easy integration with any Web 3 EVM-compatible wallet, accepting USDC as collateral.
- Available Leverage: Up to 20x leverage on perpetual contracts, easily managed through your wallet.
What are Inverse Perpetual Contracts?
Inverse perpetual contracts are derivatives in the crypto market, enabling speculation on price movements without owning the actual cryptocurrency. These contracts, settled in non-stablecoin crypto assets (like Bitcoin and Ethereum), offer high leverage, magnifying potential profits or losses. They stand out because they don't expire, allowing indefinite position holding.
Crypto funding rates play a critical role in the mechanics of inverse perpetual contracts, ensuring the contract prices remain tethered to the underlying spot market prices. This is crucial during both bullish and bearish market phases.
In a bull market, these contracts shine as traders use the cryptocurrency itself for collateral. As the market rises, so does the value of this collateral, boosting the potential for higher returns. This dual benefit of leveraging price movements and collateral appreciation makes inverse perpetual contracts especially attractive during upward market trends, offering a strategic advantage for maximizing gains.
COIN-Margined Contracts vs Inverse Perpetuals
COIN-margined contracts and inverse perpetuals essentially refer to the same financial instrument, albeit under different names across various exchanges. They both involve futures contracts where the trade and margin are denominated in the cryptocurrency itself, rather than in fiat currency. This means profits, losses, and collateral are all handled in the cryptocurrency of the contract, such as BTC or ETH.
The primary feature of these contracts is that they allow traders to leverage their positions in the cryptocurrency market, magnifying potential profits or losses without the need for converting to fiat currency. They are particularly favored for their flexibility in settlement, as they do not have an expiry date, enabling traders to hold positions as long as they prefer.
Bottom Line
In closing, inverse perpetual contracts stand out for enabling traders to effectively leverage or hedge in the crypto world, directly using non-stablecoin cryptocurrencies for settlements. Our analysis across platforms like Bybit, Binance, MEXC, Gate.io, and dYdX uncovers the foremost options considering aspects such as trading volume, security, user experience, and fees. Each platform shines in its way; Bybit for its broad crypto selections and dYdX for its leading role in DeFi's non-custodial trades.
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