Deribit is a Netherlands-based cryptocurrency exchange that went live in June 2016. The company was founded by a team of crypto enthusiasts, traders, programmers, physics and mathematics scientists and is currently run from its office in Amsterdam. Deribit’s founder, John Jansen, is a former options trader on the Amsterdam Exchange. He came up with the idea for the project after he was fascinated by Bitcoin in 2012.
What distinguishes Deribit from other cryptocurrency exchanges is the fact that the ambitious team behind the project had been testing the platform for two years, before launching it which helped them create a framework capable of handling large numbers of requests with extremely low latency (<1 ms). At the time of this writing, the Deribit team claims that there is yet to be another platform with similar performance. Every part of the exchange’s infrastructure, including the matching engine, is built from scratch and the technology is propriety. The exchange’s servers are located in OVH datacenter SBG in Strasbourg (France).
As of today, Deribit is one of Europe’s most preferred, transparent and reliable cryptocurrency trading platforms. The exchange offers Bitcoin (BTC) and Ethereum (ETH) options and futures contracts. It provides traders with the chance to trade with very high leverage of up to 10x for options and 100x for BTC futures. It is open to users from a variety of countries and its website is available in English, Chinese, Korean, Japanese and Russian languages. Deribit does not accept fiat deposits and deals only with Bitcoin which means that to trade there, clients need a primary exchange to buy BTC.
Deribit’s services attract interest not only from individual clients but from businesses as well. In March 2019, the Cayman Island-based Caspian exchange announced that it is integrating Deribit’s BTC and ETH options and futures trading features on its platform. Due to Caspian’s main focus on big clients and institutions, Deribit’s services are now available to high-volume traders all around the world. When it comes to KYC procedures, Deribit offers a very relaxed policy and does not have a mandatory requirement on all users’ accounts.
Deribit’s team claims to take security very seriously and keeps more than 99% of the customer deposits in cold storage. The vast majority of the funds are stored in vaults and bank safes around the world. Deribit also has an insurance fund to cover the losses of bankrupt traders. However, the exchange announced that, since going live, it has not lost a single penny of their clients’ money.
The exchange runs a two-factor authentication code called Time-Based One-Time Passcode (TOTP). The code combines a secret key with the current timestamp using a cryptographic hash function to generate a one-time password, valid in 30-second intervals. The fully-functional platform offers real-time auditing, liquidation and risk management features to ensure its continued stability and secure operation. At the time of this writing, Deribit’s history is entirely clear of hacks, and operational problems.Read More