How to hedge XRP

XRP is XRP token.

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

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

Choose from the list of hedging options

XRP Futures

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

At the moment however, there is not any future contract for XRP available.

XRP 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
XT.COM (Derivatives) XRP_USDT 0.046 0.01 0.00430 1,923,196,251 1,514,329,855
Coincall XRP-USD 0.056 0.05 0.01000 629,972,037 4,146,396
Binance (Futures) XRPUSDT 0.061 0.01 0.00671 544,597,555 1,884,140,172
Gate.io (Futures) XRP_USDT 0.014 4.35 0.00970 531,996,564 211,409,727
OrangeX Futures XRP-USDT-PERPETUAL 0.054 0.00 -0.00860 483,469,867 1,342,628,546
Bybit (Futures) XRPUSDT 0.050 0.01 0.01000 466,605,203 1,096,615,342
Toobit Futures XRP-SWAP-USDT 0.071 0.01 -0.02432 350,786,822 1,664,070,662
Bitunix Futures XRP_USDT 0.045 0.01 0.01671 350,303,925 905,254,497
Coincatch Derivatives XRPUSDT_UMCBL 0.101 0.06 -0.01370 303,034,908 124,659,046
C-Trade XRPUSDT -0.141 0.04 0.01000 249,525,838 6,660,037
BVOX (Futures) XRP-SWAP-USDT 0.024 0.03 0.00471 245,089,600 841,219,872
Bitrue (Futures) XRP-USDT 0.011 0.02 -0.02566 225,104,904 4,269,075,638
Hyperliquid (Futures) XRP-USD 0.062 0.01 -0.00426 209,946,491 186,076,486
CoinW (Futures) XRP/USDT -0.004 0.04 0.01000 188,943,454 372,255,627
MEXC (Futures) XRP_USDT 0.059 0.01 -0.00900 187,667,835 567,299,998
BYDFi (Futures) XRP-PERPUSD 0.184 0.01 0.01300 180,459,888 774,633,092
WEEX (Futures) XRP-USDT 0.000 0.00 0.00005 152,402,337 2,017,475,096
LBank (Futures) XRPUSDT 0.073 0.01 -0.01176 141,217,146 28,827,614
Coincatch Derivatives XRPUSD_DMCBL 0.068 0.07 0.05160 129,696,193 452,136
KCEX (Futures) XRP_USDT 0.058 0.00 -0.00840 116,418,418 178,283,192
PrimeXBT XRP/BTC 0.000 4.00 0.00000 114,010,000 7,118,377
BingX (Futures) XRP-USDT 0.000 0.02 0.00340 105,851,398 235,471,320
Binance (Futures) XRPUSD_PERP 0.067 0.01 0.00769 102,402,230 159,788,550
Bybit (Futures) XRPUSD 0.060 0.01 0.00215 101,406,579 48,006,207
XT.COM (Derivatives) XRP_USD 0.059 0.01 -0.00048 89,818,800 48,501,890
WhiteBIT Futures XRP_PERP 0.260 0.10 0.01423 84,165,969 56,880,303
Phemex (Futures) XRP-PERP 0.082 0.03 0.01000 76,647,659 7,922,430
Ourbit (Futures) XRP_USDT 0.092 0.02 0.01000 73,403,964 612,148,278
BYDFi (Futures) XRP-PERPUSDT 0.049 0.02 0.01500 69,192,428 1,100,453,932
BloFin (Futures) XRP-USDT 0.000 0.01 0.03033 64,812,500 723,943,001
PrimeXBT XRP/USD 0.000 0.37 0.00000 59,798,300 3,724,596
Bybit XRPUSD 0.089 0.03 -0.07580 46,632,043 75,195,130
Bybit XRPUSDT 0.059 0.03 -0.04920 36,833,865 75,852,151
Phemex (Futures) XRP-PERPUSDT 0.043 0.01 -0.00265 32,678,555 90,209,849
Phemex (Futures) XRP-PERPUSD -0.173 0.02 0.03307 30,278,445 11,315,896
FTX (Derivatives) XRP-PERP 1.660 0.61 -2.94000 29,204,183 206,317,908
BitVenus Futures XRP-SWAP-USDT 0.017 0.19 0.00550 26,905,576 89,920,268
ZBG Futures XRP_USDT -0.065 0.19 0.01000 23,028,715 4,646,661
Blofin XRP-USDT 0.000 0.04 0.01968 22,324,985 96,550,252
CoinEx (Futures) XRP-USDT -0.016 0.03 0.00000 19,997,886 154,474,544
MEXC Global (Futures) XRP_USDT 0.057 0.02 0.01090 18,759,833 91,258,202
Prime XBT XRP/USD 0.000 1.96 0.00000 14,163,600 217,734
AAX Futures XRPUSDTFP 0.684 9.52 -0.01056 12,450,157 47,426,125
Bitget Futures CMT_XRPUSDT -0.026 0.07 -0.00459 11,812,686 50,683,965
Hopex XRPUSDT 0.049 0.00 0.00000 10,815,018 33,104,115
CoinTR Pro (Derivatives) XRPUSDT 0.019 0.00 0.01000 10,649,254 112,245,884
OKEx (Futures) XRP-USDT-SWAP -0.017 0.05 -0.01923 9,264,748 56,737,392
ApeX Pro XRPUSDC -0.318 0.08 0.01987 8,922,777 1,729,983
HTX Futures XRP-USDT -0.244 1.59 0.05378 7,681,884 7,866,570
Prime XBT XRP/BTC 0.000 10.00 0.00000 7,412,300 2,125
Bitforex (Futures) SWAP-USD-XRP 0.039 0.18 0.02294 7,364,905 37,290,109
BitZ (Futures) 104 0.016 0.17 0.00000 6,801,657 107,361,215
OKEx (Futures) XRP-USD-SWAP 0.081 0.06 -0.02160 6,399,920 30,361,988
Phemex (Futures) XRPUSD 0.078 0.02 0.01000 6,116,496 212,220,030
BitMake Futures XRPUSDT 0.016 0.02 0.00000 5,970,754 65,200,536
MUFEX XRPUSDT -0.102 0.02 0.04070 4,816,675 425,817,228
Bybit (Futures) XRPPERP -0.019 0.02 0.01000 4,520,098 76,513
BitMEX XRPUSD -0.119 0.02 0.01000 4,437,237 3,161,817
Aevo XRP-PERP 0.000 0.05 -0.00120 4,361,160 1,097,496
BTSE (Futures) XRPPFC 0.039 0.09 0.00000 3,326,134 2,147,451
Bitfinex (Futures) XRPF0:USTF0 -0.147 0.04 0.03336 3,119,090 878,426
RabbitX XRP-USD -0.119 0.07 0.01653 2,932,458 28,439,322
Phemex XRPUSD -0.066 0.16 0.01000 2,697,170 18,080,031
MXC (Futures) XRP_USDT -0.026 0.12 0.00000 2,514,230 2,224,183
Huobi Futures XRP-USDT 0.018 2.04 0.01000 1,431,426 12,163,910
BTSE (Futures) XRP-PERP -0.009 0.09 0.00982 1,116,493 3,975,909
Bitget Futures XRPUSD 0.000 0.06 -0.09975 1,093,603 2,391,539
Kraken (Futures) PI_XRPUSD -0.011 0.07 0.00431 1,047,703 896,706
Stormgain Futures XRP-PERPUSDT 0.000 0.09 0.00400 1,010,130 815,715
WOO X (Futures) PERP_XRP_USDT -0.028 0.03 0.01707 569,371 1,033,169
Binance (Futures) XRPBUSD 0.024 0.02 0.01000 435,088 1,754,597
MEXC (Futures) XRP_USD -0.082 0.02 0.01000 347,725 4,027,569
BitZ (Futures) XRP_USDT 0.000 0.23 0.00000 338,754 1,975,274
HTX Futures XRP-USD -0.150 1.61 0.02046 332,830 3,116,715
Deribit XRP_USDC-PERPETUAL -0.065 0.02 -0.00864 276,191 287,506
WOO Network (Futures) PERP_XRP_USDT 0.070 0.08 -0.00101 209,693 348,570
Huobi Futures XRP-USD 0.007 2.04 0.01000 177,690 563,829
AscendEX (BitMax) (Futures) XRP-PERP 0.025 0.00 0.00200 155,924 6,162,916
MEXC Global (Futures) XRP_USD 0.000 0.02 0.01510 100,119 28,068,775
BaseFEX XRPXBT 1.353 3.07 0.01000 97,774 975,600
Crypto.com Exchange (Futures) XRPUSD-PERP 0.016 0.06 0.00301 82,582 10,886
HitBTC (Derivatives) XRPUSDT_PERP -0.016 0.05 0.01000 65,754 1,677,754
Hyperliquid XRP-USD -0.002 0.01 0.00350 58,743 293,621
Kwenta Derivatives XRP_SUSD 0.000 0.00 0.05269 50,120 71,674
ZB (Derivatives) XRP_USDT -0.052 0.16 0.01000 36,026 37,576,537
Kine Protocol (Derivatives) XRP-PERP 0.000 0.00 0.02000 31,467 23,910,805
Helix (Futures) XRP/USDT PERP 0.380 0.05 0.00040 25,791 1,313
Drift Protocol XRP-PERP 0.000 0.00 0.00226 24,670 7,487
Opnx Derivatives XRP-OUSD-SWAP-LIN 0.016 0.00 -0.00003 10,480 12
Gate.io (Futures) XRP_USD -5.704 60.00 0.01000 7,064 85
Bit.com (Futures) XRP-USDT-PERPETUAL -0.026 0.38 0.00000 364 276
MXC (Futures) XRP_USD -0.067 0.47 -0.04430 0 1,268,353,797
Deepcoin (Derivatives) XRPUSD 0.122 0.04 0.02327 0 436,156,518
BTCEX (Futures) XRP-USDT-PERPETUAL 0.063 0.04 0.10000 0 193,398,410
CoinTiger (Futures) XRPUSDT 0.122 0.02 -0.00159 0 170,084,417
Bitmart Futures XRPUSDT -0.096 0.28 0.01967 0 96,444,692
BTCC Futures XRPUSDT 0.006 0.07 0.00000 0 90,752,795
Deepcoin (Derivatives) XRPUSDT -0.039 0.01 0.02430 0 62,404,740
Biki (Futures) 8 -0.062 0.32 0.10041 0 52,805,491
Fairdesk Derivatives XRP-USDT-PERP 0.016 -1.90 0.00930 0 31,330,885
MyCoinStory XRPUSDT_QUANTO_PERP -0.281 0.00 0.18486 0 7,725,393
Bit.com (Futures) USD-M:XRP-USD-PERPETUAL 0.593 0.14 -0.00815 0 5,972,673
GMO Japan (Futures) XRP_JPY 0.000 0.07 0.00000 0 5,104,480
Toobit Derivatives XRP-SWAP-USDT 0.048 0.06 0.01000 0 4,913,051
BIT (Futures) USD-M:XRP-USD-PERPETUAL -0.023 0.04 0.01000 0 4,364,734
HBTC (Futures) XRP-SWAP-USDT -0.012 0.11 -0.01304 0 2,388,540
AQX (Derivatives) XRP-USDT.PERP -0.253 0.04 0.01000 0 1,486,882
Delta Exchange XRPUSDT -0.373 0.02 0.19170 0 1,474,953
Delta Exchange XRPBTC 0.518 0.62 0.01000 0 1,469,094
HBTC (Futures) XRP-SWAP -0.063 0.01 0.02477 0 150,176
Bitfinex (Futures) XRPF0:BTCF0 0.050 0.20 -0.00953 0 101,127
BHEX (Futures) XRP-SWAP-USDT 0.021 0.15 0.01808 0 53,656
Crypto.com (Futures) XRPUSD-PERP 0.000 0.18 0.00000 0 50,173
BHEX (Futures) XRP-SWAP 0.012 0.02 0.02784 0 45,604
MEXC Global (Futures) XRP_MUSDT -0.163 94.73 0.00000 0 42,862
Flipster XRP-USDT.PERP 0.249 0.06 0.01000 0 33,181
CoinFLEX (Futures) XRP-USD-SWAP-LIN 0.000 2.01 0.00000 0 6,784
Bibox (Futures) 4XRP_USDT 0.000 0.03 0.00000 0 6,699
Globe (Derivatives) XRP-PERP 0.407 0.21 0.00000 0 850
MCS XRPUSDT_QUANTO_PERP -0.804 0.10 0.01000 0 98
Opnx Derivatives XRP-USDT-SWAP-LIN -0.095 0.00 -0.00002 0 37

Future Contracts on Indexes with XRP 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 XRP exists.

Perpetual Swaps on Indexes with XRP component

Sometime the best option to hedge XRP 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
XT.COM (Derivatives) ALT_USDT 0.141 0.02 -0.02406 184,337,359 18,572,585
Binance (Futures) ALTUSDT 0.082 0.05 0.00500 12,961,457 41,107,164
FTX (Derivatives) ALT-PERP -9.888 0.60 10.36560 5,825,356 8,460,075
MEXC (Futures) ALT_USDT -0.058 0.01 0.02730 2,568,124 5,809,957
MEXC Global (Futures) ALT_USDT -1.339 1.77 0.10000 45,019 441,973
Gate.io (Futures) ALT_USDT -0.060 18.68 0.01000 7 2,265
BTSE (Futures) BBAXPFC -0.277 0.41 0.00000 0 186,125

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
BingX (Futures) BTCDOM-USDT -0.003 0.01 -0.01020 542,271 1,355,399
Bitfinex (Futures) BTCDOMF0:USTF0 0.095 0.15 -0.05461 502,413 259,229
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT 0.072 0.01 -0.02318 3,779 1,738,556
BTSE (Futures) BDIPFC -0.143 0.30 0.00000 2,482 41,193
BTSE (Futures) BTCDOMPFC 0.600 3.35 0.00000 0 5,990,922

Negative correlation with XRP

It can be an awkward exercise to find liquid, negatively correlated altcoins in the cryptocurrency market.

The strongest negatively correlated crypto tokens (returns in USD) in a long term are:

XAUT KNC
XRP -0.01 -0.00

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

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