How to hedge Bitcoin

BTC is Bitcoin token.

As BTC is a volatile asset, in certain instances it will require hedging.

The best method of hedging BTC is to use crypto derivatives.
There are multiple of the exchanges serving futures and perpetual swaps.

Choose from the list of hedging options

Bitcoin Futures

When required to hedge the position for the mid-term period (weeks to months) you can use futures.

Exchange Symbol Premium (-)
Discount (+)
Spread Open Intrest 24h Volume Expiry Date
BTCC Futures BTC-WEEKLY -0.054 0.01 342,971,607 718,636,990 2/12/2022
FTX (Derivatives) BTC-1230 -1.263 0.13 96,271,549 170,988,938 30/12/2022
BTCC Futures BTC-QUARTERLY -0.052 0.01 342,988,385 107,123,547 31/12/2022
BTCC Futures BTC-DAILY 0.066 0.01 341,929,029 102,191,738 26/11/2022
Binance (Futures) BTCUSD_PERP -0.099 0.11 1,635,700 62,305,943 25/12/2100
FTX (Derivatives) BTC-0331 -1.709 0.74 17,744,774 40,056,070 31/3/2023
OKX (Futures) BTC-USD-221230 0.052 0.01 579,971,600 39,051,891 30/12/2022
Binance (Futures) BTCUSD_221230 0.386 0.01 125,694,100 37,416,236 30/12/2022
Huobi Futures BTC_NW 0.311 0.09 608,600 30,250,908 2/12/2022
OKX (Futures) BTC-USDT-221230 -0.233 0.01 11,665,200 19,466,348 30/12/2022
OKX (Futures) BTC-USD-230331 -0.288 0.02 170,376,100 15,330,373 31/3/2023
Binance (Futures) BTCUSD_230331 0.234 0.01 26,894,900 14,376,736 31/3/2023
Deribit BTC-30DEC22 0.327 0.03 122,958,680 13,317,459 30/12/2022
Huobi Futures BTC_CW 0.023 0.10 491,400 10,608,524 2/12/2022
OKX (Futures) BTC-USDT-230331 -0.565 0.01 5,095,400 9,407,210 31/3/2023
Huobi Futures BTC_NW 0.129 0.16 10,500 6,607,586 9/12/2022
Huobi Futures BTC_CQ 0.290 0.01 6,614,800 6,202,955 30/12/2022
Deribit BTC-2DEC22 0.014 0.01 5,468,480 5,495,135 2/12/2022
BTCC Futures BTC-QUARTERLY 0.000 0.01 4,013,779 4,022,368 31/3/2023
Deribit BTC-31MAR23 0.397 0.05 42,886,200 3,769,593 31/3/2023
Deribit BTC-9DEC22 0.011 0.02 645,760 1,914,011 9/12/2022
Deribit BTC-30JUN23 0.375 0.02 23,215,160 1,719,152 30/6/2023
Deribit BTC-27JAN23 0.375 0.02 211,890 317,963 27/1/2023
Deribit BTC-29SEP23 0.648 0.30 8,277,430 98,145 29/9/2023

Bitcoin Perpetual Swaps

Short position for indefinite time is also possible by using perpetual.
Moreover you can earn swaps in particular cases.

Exchange Symbol Premium (-)
Discount (+)
Spread Funding Rate Open Intrest 24h Volume
Binance (Futures) BTCUSDT 0.036 0.01 0.00394 2,073,424,869 5,063,060,196
MEXC Global (Futures) BTC_USDT 0.038 0.01 -0.00130 1,523,756,035 1,370,626,224
BTSE (Futures) BTCPFC -0.024 0.02 0.00000 1,274,484,140 136,842,367
BingX (Futures) BTC-USDT 0.000 0.01 -0.01000 1,104,135,437 2,101,102,523
Bybit BTCUSDT 0.051 0.01 0.01000 1,073,535,970 3,330,158,640
BTCEX (Futures) BTC-30SEP22 0.162 0.04 0.00630 981,441,422 846,336,704
Prime XBT BTC/USD 0.000 0.06 0.00000 975,800,800 34,877,293
Bybit (Futures) BTCUSDT 0.058 0.01 0.01000 906,930,844 1,312,497,677
C-Trade BTCUSDT 0.032 0.01 0.01000 856,592,611 43,707,219
Bitget Futures CMT_BTCUSDT 0.008 0.02 -0.00136 650,218,862 2,589,428,358
BTCEX (Futures) BTC-24JUN22 0.078 0.06 0.01000 600,632,539 1,089,317,456
AAX Futures BTCUSDTFP 0.000 0.07 0.20459 599,756,558 17
FTX (Derivatives) BTC-PERP -0.605 0.02 0.41280 556,680,218 3,931,839,727
Bybit BTCUSD 0.058 0.01 0.00620 445,125,214 732,610,774
KuCoin Futures XBTUSDTM 0.037 0.02 -0.01320 416,317,730 375,991,372
Bitfinex (Futures) TBTCF0:USTF0 0.175 0.12 0.00000 413,715,764 72,274,942
Binance (Futures) BTCBUSD 0.042 0.01 -0.00405 356,566,355 900,435,436
BitMEX XBTUSD 0.006 0.01 0.00000 343,574,300 405,676,611
BTCC Futures BTCUSDT 0.002 0.01 0.00000 343,267,725 223,178,244
Bybit (Futures) BTCUSD 0.063 0.01 -0.01470 333,976,971 260,956,813
Binance (Futures) BTCUSD_PERP 0.039 0.01 0.00698 331,481,600 766,030,484
Deribit BTC-PERPETUAL 0.042 0.01 -0.00049 331,035,400 141,180,438
ZBG Futures BTC_ZUSD 0.142 0.01 -0.00543 324,272,699 1,120,235
C-Trade BTCUSD 0.011 0.02 0.01000 304,531,747 7,960,792
OKEx (Futures) BTC-USDT-SWAP -0.032 0.01 0.00748 295,259,300 4,325,657,815
BTCMEX BTCUSD 0.084 0.00 0.01000 289,778,991 2,143,017,004
BTCMEX BTCUSDT 0.050 0.00 0.01000 289,778,991 572,722,079
OKEx (Futures) BTC-USD-SWAP -0.019 0.01 -0.00814 205,257,500 679,545,460
Gate.io (Futures) BTC_USDT 0.027 0.01 0.00140 194,856,468 95,262,541
AAX Futures BTCUSDFP 0.307 4.21 0.04903 194,079,416 274,981,140
BitZ (Futures) 101 0.023 0.12 0.00000 147,712,494 2,328,854,320
Bitforex (Futures) SWAP-USD-BTC 0.007 0.01 0.01270 122,439,822 1,302,005,048
MXC (Futures) BTC_USD 0.018 0.06 0.02000 111,583,200 1,212
Bitrue (Futures) BTC-USDT -0.079 0.01 0.00389 109,572,803 3,106,397,591
ZBG Futures BTC_USDT 0.099 0.01 -0.00734 105,190,970 1,418,028
Bitfinex (Futures) BTCF0:USTF0 -0.042 0.02 0.00000 104,514,829 4,460,283
Crypto.com Exchange (Futures) BTCUSD-PERP -0.069 0.01 0.00227 91,366,439 91,366,439
dYdX Perpetual BTC-USD 0.042 0.02 -0.00271 78,515,929 101,692,718
BTCEX (Futures) BTC-31MAR23 -0.076 0.01 0.00030 76,111,971 524,528,810
BTCEX (Futures) BTC-30DEC22 0.221 0.02 0.00030 75,710,085 322,017,007
Bitmart Futures BTCUSDT 0.036 0.01 -0.02000 69,738,966 332,827,207,990
MXC (Futures) BTC_USDT -0.023 0.03 0.00297 63,213,940 113,293,123
Huobi Futures BTC-USDT 0.003 0.01 0.01000 51,365,171 216,322,995
MyCoinStory BTCUSDT -0.016 0.02 0.01000 51,117,733 18,546,549
MCS BTCUSDT -0.159 0.12 0.01000 50,901,999 13,793,324
Phemex (Futures) BTCUSD -0.038 0.01 0.01000 38,597,193 162,406,750
Kraken (Futures) PI_XBTUSD -0.169 0.09 -0.00106 38,158,270 7,711,224
BingX (Futures) BTC-USDC 0.000 0.02 0.01000 36,416,459 240,974,060
Huobi Futures BTC-USD -0.262 0.01 0.13320 36,281,800 11,950,027
Phemex BTCUSD -0.058 0.10 0.05913 31,597,323 341,056,663
Bitget Futures BTCUSD 0.004 0.01 0.00469 22,994,034 89,974,754
KuCoin Futures XBTUSDM -0.013 0.02 -0.03120 22,244,334 3,642,596
Gate.io (Futures) BTC_USD -0.057 0.06 0.01000 19,448,569 1,519,932
BitZ (Futures) 201 -0.009 0.13 0.00000 17,312,302 268,684,298
BaseFEX BTCUSDT -0.079 0.04 0.01000 17,272,631 18,032,837
CoinEx (Futures) BTC-USDT -0.013 0.01 -0.01176 8,225,794 70,360,670
dYdX Perpetual PBTC-USDC 0.090 0.05 0.00001 7,554,375 1,121,936
MEXC Global (Futures) BTC_USD 0.178 0.01 0.02190 5,442,500 45,130
BitZ (Futures) 1 0.055 0.11 0.00000 5,427,012 84,214,110
WOO Network (Futures) PERP_BTC_USDT -0.020 0.02 -0.00019 4,626,294 41,078,183
Kumex XBTUSDM -0.052 0.11 0.01000 4,542,007 12,254,524
BitMEX BCHUSD -0.071 0.05 0.02690 4,286,551 2,071,978
Drift Protocol BTC-PERP 0.000 0.00 0.12668 4,226,706 0
Bit.com BTC-PERPETUAL 0.197 0.02 0.00000 4,090,270 6,338,440
Deribit BTC_USDC-PERPETUAL 0.091 0.02 -0.04273 3,940,027 2,060,450
Hopex BTCUSDT -0.031 0.00 0.00000 3,598,365 572,584,892
Perpetual protocol BTC_USDC 0.000 0.00 -0.02000 2,913,536 0
AscendEX (BitMax) (Futures) BTC-PERP 0.041 0.00 -0.01264 2,749,688 1,621,088
BitMax (Futures) BTC-PERP -0.105 0.00 0.04963 2,439,673 7,922,145
BitZ (Futures) BTC_USDT -0.001 0.03 0.00000 2,082,641 11,464,759
Kumex XBTUSDTM 0.058 0.11 0.01000 1,999,642 1,926
Hopex BTCUSD 0.008 0.00 0.00000 1,965,870 270,255,710
Mango Markets (Derivatives) BTC-PERP -0.092 0.28 0.00583 1,573,348 63
CoinEx (Futures) BTC-USD -0.105 0.06 0.03214 1,303,783 1,157,509
Bithumb (Futures) BTC-PERP -0.099 0.13 0.04236 1,300,023 7,381,074
Perpetual Protocol BTC_USD 0.000 0.00 -0.00008 1,242,139 841,931
BigONE Futures BTCUSD -0.018 0.02 0.01000 909,279 59,438,568
BigONE Futures BTCUSDT 0.021 0.02 0.01000 869,327 230,981,615
ZB (Derivatives) BTC_USDT 0.994 0.13 0.01000 848,581 774,149,658
dYdX Perpetual (L1) PBTC-USDC 0.128 77.50 0.00000 843,580 410,367
Bit.com (Futures) COIN-M:BTC-PERPETUAL 0.079 0.03 0.00000 789,320 142,086,793,600
Kraken (Futures) PI_BCHUSD 0.353 0.35 -0.38248 695,194 45,770
BIT (Futures) COIN-M:BTC-PERPETUAL 0.003 0.07 0.00000 671,215 69,904,062,945
ZB (Derivatives) BTC_QC -0.010 0.06 0.01000 666,061 20,640,169
HitBTC (Derivatives) BTCUSDT_PERP -0.060 0.03 0.01248 547,842 8,683,347
Powertrade (Derivatives) BTC-USD-PERPETUAL -5.503 0.01 5,645,423.00000 514,309 1,134,759
Bit.com (Futures) BTC-PERPETUAL 0.014 0.06 0.00000 503,410 4,689,380
Bitmart Futures 1 0.048 0.01 -0.00151 416,497 660,863,582
Crypto.com Exchange (Futures) BTCUSD-220325 0.086 0.05 0.00000 415,158 359,471
BaseFEX BTCUSD 0.013 0.04 0.01000 314,593 3,087,350
Crypto.com Exchange (Futures) BTCUSD-220225 0.234 0.22 0.00000 291,801 203,876
Bit.com (Futures) BTC-USDT-PERPETUAL -0.065 0.06 0.00000 243,717 58,703
Bitmart Futures BTCUSD 0.021 0.01 0.00769 190,706 22,206,403,377
MCDEX (BSC) BTC-BUSD 0.000 0.80 0.06702 146,347 9,391
Bitget Futures BTCUSD_DMCBL_221230 0.326 0.05 0.00000 125,348 698,180
Crypto.com Exchange (Futures) BTCUSD-211231 0.017 0.11 0.00000 86,159 148,680
Crypto.com Exchange (Futures) BTCUSD-220624 -0.156 0.02 0.00000 70,307 136,184
BitZ (Futures) BTC_USD -0.001 0.08 0.00000 50,787 296,651
Crypto.com Exchange (Futures) BTCUSD-220930 -0.983 0.04 0.00000 44,827 376,080
Bitget Futures BTCUSD_DMCBL_230331 0.329 0.02 0.00000 44,040 694,608
Crypto.com Exchange (Futures) BTCUSD-220527 -0.093 0.10 0.00000 21,324 18,506
MCDEX (Arbitrum) BTC-USDC -2.771 0.20 -0.00005 18,218 4,556
Crypto.com Exchange (Futures) BTCUSD-220128 0.061 0.10 0.00000 17,046 60,591
CoinFLEX (Futures) BTC-USD-SWAP-LIN 0.000 0.08 0.00000 11,903 34,355
Crypto.com Exchange (Futures) BTCUSD-220429 0.054 0.10 0.00000 7,160 7,059
Crypto.com Exchange (Futures) BTCUSD-220729 -0.526 0.05 0.00000 5,735 3,564
Bit.com (Futures) USD-M:BTC-USD-PERPETUAL 0.143 0.02 0.00000 341 40,440,020
BIT (Futures) USD-M:BTC-USD-PERPETUAL 0.087 0.02 -0.00090 333 38,684,172
Alpha5 XBTUSD 7.706 0.57 0.00003 292 11,194
Biki (Futures) 28 -0.020 0.13 0.00997 0 4,057,314,709
BTCEX (Futures) BTC-USDT-PERPETUAL -0.024 0.01 0.00060 0 1,801,839,159
BTCEX (Futures) BTC-25MAR22 -0.302 0.01 0.01000 0 1,631,238,351
HBTC (Futures) BTC-PERP-REV -0.004 0.01 -0.02077 0 1,586,088,571
Deepcoin (Derivatives) BTCUSDT 0.010 0.02 0.01231 0 1,495,235,836
Bitget Futures CMT_BTCSUSDT -0.003 0.01 -0.01086 0 805,185,697
BHEX (Futures) BTC-PERP-REV -0.014 0.01 -0.01084 0 661,137,486
BHEX (Futures) BTC-PERP-BUSDT -0.014 0.01 0.00422 0 544,266,307
CoinTiger (Futures) BTCUSDT 0.038 0.01 0.00381 0 506,304,626
Biki (Futures) 11 -0.022 0.10 0.00993 0 460,193,559
Bybit BTCUSDM21 -1.335 0.01 -0.04060 0 329,470,782
BitZ (Futures) BTC_DKKT 2.155 0.07 0.00000 0 297,641,032
Stormgain Futures BTC-PERPUSDT 0.000 0.03 0.00400 0 212,488,806
Bybit BTCUSDU21 -6.760 0.01 -0.04060 0 205,364,120
HBTC (Futures) BTC-PERP-BUSDT 0.051 0.01 -0.00284 0 203,428,138
BitZ (Futures) 301 0.042 0.12 0.00000 0 186,963,949
Biki (Futures) 1 1.440 0.02 -0.16641 0 140,945,714
Deepcoin (Derivatives) BTCUSD -0.023 0.06 0.00943 0 128,057,878
Biki (Futures) 29 -0.020 0.12 0.01544 0 107,521,811
Biki (Futures) 17 -0.019 0.11 0.01790 0 99,640,498
Bitflyer (Futures) FX_BTC_JPY 0.000 0.01 0.00000 0 78,976,922
Binance (Futures) BTCUSDT_210326 -4.217 0.18 0.00000 0 55,708,338
Biki (Futures) 16 0.027 0.11 -0.03174 0 43,147,817
HBTC (Futures) BTC-SWAP -0.019 0.07 -0.00668 0 39,112,668
HBTC (Futures) BTC-SWAP-USDT -0.064 0.02 0.01014 0 30,321,688
Crypto.com (Futures) BTCUSD-PERP 0.000 0.05 0.00000 0 28,463,889
ZBG Futures BTC_USD-R 0.243 0.01 -0.00638 0 27,563,179
GMO Japan (Futures) BTC_JPY 0.000 0.02 0.00000 0 24,494,171
Delta Exchange BTCUSDT -0.176 0.01 0.05600 0 23,882,819
Biki (Futures) 25 -0.023 0.12 0.00998 0 15,249,112
Bitget Futures BTCPERP_CMCBL -0.023 0.01 -0.06000 0 11,987,591
Biki (Futures) 27 -0.020 0.12 0.00998 0 10,865,415
Biki (Futures) 26 -0.023 0.15 0.00993 0 10,138,308
Biki (Futures) 21 -0.024 0.14 0.00997 0 10,103,314
Biki (Futures) 15 -0.021 0.12 0.00997 0 9,924,614
Delta Exchange BTCUSD -0.116 0.01 0.06750 0 8,511,155
ZBG Futures BTC_USD-R20190927 0.000 0.11 0.00000 0 8,043,860
Biki (Futures) 24 -0.028 0.17 0.00166 0 6,828,717
Biki (Futures) 19 -0.121 0.11 -0.00003 0 6,584,926
Biki (Futures) 18 0.063 0.12 0.01940 0 6,486,261
Injective Exchange (Futures) BTC/USDT PERP 0.224 0.09 0.00760 0 4,008,293
Helix (Futures) BTC/USDT PERP -0.028 0.01 0.00050 0 2,807,954
Bibox (Futures) 4BTC_USDT 0.000 0.01 0.00000 0 2,443,207
Crypto.com (Futures) BTCUSD-210625 0.000 0.06 0.00000 0 868,907
MCDEX (BSC) BTC-USX -0.548 0.00 0.00000 0 561,379
ZBG Futures BTC_USD-R20190628 0.000 0.11 0.00000 0 311,190
Injective Pro (Futures) BTC/USDT PERP -0.451 0.03 0.00040 0 292,561
Biki (Futures) 14 -0.021 0.14 0.00998 0 280,646
BHEX (Futures) BTC-SWAP-USDT 0.004 0.12 -0.02497 0 124,255
Crypto.com Exchange (Futures) BTCUSD-210924 0.183 0.13 0.00000 0 114,430
BHEX (Futures) BTC-SWAP 0.052 0.07 -0.01350 0 39,659
MCDEX 00002 0.000 0.00 0.00000 0 34,889
Globe (Derivatives) BTC-PERP -0.284 0.13 0.66667 0 28,416
Crypto.com Exchange (Futures) BTCUSD-211126 0.065 0.09 0.00000 0 25,256
EQONEX (Perpetual) 25 -2.339 7.41 -80.48430 0 20,713
Bitmart Futures 32895 0.043 0.03 0.01690 0 15,640
ACDX Futures BTC-PERP -1.082 0.04 0.00000 0 13,950
Crypto.com (Futures) BTCUSD-210924 0.000 0.12 0.00000 0 9,349
Crypto.com (Futures) BTCUSD-211231 0.000 0.24 0.00000 0 8,974
Crypto.com Exchange (Futures) BTCUSD-210625 0.000 0.33 0.00000 0 5,475
MCDEX BTC-USDC -0.369 0.12 0.03156 0 2,262
Bitfinex (Futures) BTCF0:EUTF0 -0.109 0.04 -0.08730 0 1,753
Liquid Perpetuals P-BTCUSD -1.188 1.19 0.00500 0 1,212
BitZ (Futures) BTC_USDT_BZ -1.676 0.04 0.00000 0 868
Biki (Futures) 2 -0.170 0.11 -0.13722 0 406
DueDEX BTCUSD 0.663 0.00 0.01000 0 134
DueDEX BTCUSDT -2.508 0.00 0.01000 0 126
Liquid Perpetuals P-BTCJPY -2.114 1.00 0.04700 0 105
Binance JEX (Futures) BTCUSDT 0.491 0.86 0.01000 0 10
MCDEX (BSC) BTC-ETH 0.310 0.02 0.00000 0 0
Stormgain Futures BTC-PERPDAI NaN 0.04 0.00400 0 0
Stormgain Futures BTC-PERPUSDC NaN 0.11 0.00400 0 0
Stormgain Futures BTC-PERPUDAI NaN 0.11 0.00400 0 0
Prime XBT BTC/USDC 0.000 0.00 0.00000 0 0
Prime XBT BTC/USDT 0.000 0.00 0.00000 0 0
CoinFLEX (Futures) BTC-USD-SWAP-LIN_LIQ 0.000 0.00 0.00000 0 0
CoinFLEX (Futures) BTC-USD-SWAP-LIN-LIQ 0.000 0.00 0.00000 0 0

Future Contracts on Indexes with Bitcoin embeded

Another way of hedging positions for the mid-term is using future contracts on indexes with the asset price as a component of the the index.

Unfortunatelly, no future contract on index consisting of BTC exists.

Perpetual Swaps on Indexes with Bitcoin component

Sometime the best option to hedge Bitcoin is to short with perpetual contract idefinitely.
Earning swaps can be in some cases crucial for the positioning.

Exchange Symbol Premium (-)
Discount (+)
Spread Funding Rate Open Intrest 24h Volume
BTSE (Futures) BBCXPFC -1.309 0.59 0.00000 0 30,866

Other crypto related Indexes (Perpetual Swaps)

There are several specyfic cryptocurrencies market Indexes which can be considered as a hedge for the trading positions. As Bitcoin take the lion's share of the whole market capitalisation, BTC dominance is one of the most notable.
Even more than on other markets, Bitcoin volatility influences almost all the trading pairs traded with both BTC and altcoins at the same moment.

Exchange Symbol Premium (-)
Discount (+)
Spread Funding Rate Open Intrest 24h Volume
Bitfinex (Futures) BTCDOMF0:USTF0 0.014 0.04 0.00000 274,178 24,944
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT -0.094 0.02 0.01000 6,097 3,362,530
BTSE (Futures) BDIPFC -0.143 0.30 0.00000 2,482 41,193
BTSE (Futures) BTCDOMPFC 0.526 8.07 0.00000 0 12,589,606

Negative correlation with Bitcoin

Check correlations with Bitcoin or use a custom form to check BTC changes in correlation coefficient with other token.

Stable coins or non-crypto assets can also be considered for hedging positions.