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.

Exchange Symbol Premium (-)
Discount (+)
Spread Open Intrest 24h Volume Expiry Date
OKEx (Futures) XRP-USDT-210326 -1.695 0.04 18,416 50,104,279 26/3/2021
OKEx (Futures) XRP-USD-210326 -0.831 0.04 3,983,690 47,896,468 26/3/2021
Huobi Futures XRP_CQ -1.111 0.02 15,301,040 40,223,248 26/3/2021
Huobi Futures XRP_NQ 1.941 0.17 5,081,510 17,703,563 26/3/2021
Huobi Futures XRP_CW -0.190 0.07 2,272,310 9,344,766 5/3/2021
OKEx (Futures) XRP-USD-210625 -2.484 0.09 2,697,470 8,904,453 25/6/2021
Huobi Futures XRP_NW 0.201 0.17 1,971,760 6,140,224 5/3/2021
OKEx (Futures) XRP-USDT-210625 -2.637 0.09 15,715 5,976,829 25/6/2021
OKEx (Futures) XRP-USD-210305 -0.161 0.09 904,310 5,319,986 5/3/2021
OKEx (Futures) XRP-USD-210312 -0.368 0.11 663,400 4,801,839 12/3/2021
Binance (Futures) XRPUSD_210326 -1.153 0.04 4,853,960 4,698,351 26/3/2021
Huobi Futures XRP_NW -0.521 0.04 1,266,190 4,433,515 12/3/2021
OKEx (Futures) XRP-USDT-210305 -0.256 0.07 3,952 4,409,283 5/3/2021
OKEx (Futures) XRP-USDT-210312 -0.289 0.11 1,595 4,211,745 12/3/2021
Huobi Futures XRP_NQ -2.610 0.04 4,448,810 3,794,743 25/6/2021
Binance (Futures) XRPUSD_210625 -3.942 0.09 8,211,350 2,794,313 25/6/2021
FTX (Derivatives) XRP-0326 -1.286 0.17 24,998,172 906,368 26/3/2021

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
Huobi Futures XRP-USDT -0.044 0.01 0.02046 104,291,483 154,153,463
Binance (Futures) XRPUSDT -0.077 0.02 0.04434 101,701,418 413,393,885
FTX (Derivatives) XRP-PERP 0.009 0.02 0.06000 63,913,791 55,574,082
Bybit XRPUSD -0.067 0.02 0.01630 45,347,027 182,095,894
ZBG Futures XRP_USDT -0.065 0.19 0.01000 23,028,715 4,646,661
BitMEX XRPUSD -0.410 0.02 0.07730 15,171,843 36,150,496
Binance (Futures) XRPUSD_PERP -0.054 0.02 0.01730 13,941,190 50,856,544
Huobi Futures XRP-USD -0.022 0.01 0.01000 13,209,110 77,099,206
BitZ (Futures) 104 0.016 0.17 0.00000 6,801,657 107,361,215
Bitget Futures CMT_XRPUSDT 0.134 0.24 0.00472 6,719,992 22,940,574
OKEx (Futures) XRP-USD-SWAP 0.016 0.04 0.08055 5,714,750 18,678,740
Bitforex (Futures) SWAP-USD-XRP 0.156 0.22 -0.00600 3,275,435 7,279,476
BitZ (Futures) XRP_USDT -0.044 0.13 0.00000 2,979,273 34,923,130
Phemex XRPUSD -0.066 0.16 0.01000 2,697,170 18,080,031
Kraken (Futures) PI_XRPUSD -0.244 0.11 102.93173 1,940,962 3,264,931
Bitget Futures XRPUSD -0.045 0.18 -0.01005 1,815,366 1,931,789
Gate.io (Futures) XRP_USD -0.883 0.00 0.25890 587,168 197,845
Hopex XRPUSDT -18.258 0.00 0.00000 190,828 1,500
MXC (Futures) XRP_USDT -0.045 1.00 0.05000 127,502 4,710,703
BaseFEX XRPXBT 1.353 3.07 0.01000 97,774 975,600
MXC (Futures) XRP_USD -0.067 0.47 -0.04430 0 1,268,353,797
CoinTiger (Futures) XRPUSDT -0.061 0.02 0.04454 0 124,173,616
Biki (Futures) 8 0.004 0.11 0.08175 0 48,983,936
OKEx (Futures) XRP-USDT-SWAP -0.034 0.07 0.08464 0 27,740,442
MyCoinStory XRPUSDT_QUANTO_PERP -1.277 0.00 0.01000 0 3,034,505
Stormgain Futures XRP-PERPUSDT 0.000 0.20 0.00400 0 2,852,840
Delta Exchange XRPBTC 0.735 0.56 0.01000 0 1,562,394
GMO Japan (Futures) XRP_JPY 0.000 0.42 0.00000 0 1,463,920
HBTC (Futures) XRP-SWAP-USDT -0.053 0.13 0.02858 0 1,090,277
Delta Exchange XRPUSDT 0.010 0.02 0.06880 0 953,520
Gate.io (Futures) XRP_USDT -0.311 0.00 0.06190 0 942,080
Phemex (Futures) XRPUSD 6.767 1.52 0.01000 0 118,548
BHEX (Futures) XRP-SWAP 0.108 0.23 0.00412 0 27,563
Prime XBT XRP/BTC 0.000 8.33 0.00000 0 18,381
Bibox (Futures) 4XRP_USDT 0.000 0.00 0.00000 0 12,323
HBTC (Futures) XRP-SWAP 0.058 0.07 0.03038 0 11,775
Prime XBT XRP/USD 0.000 0.19 0.00000 0 2,135
CoinFLEX (Futures) XRP-USD-SWAP-LIN 0.582 0.22 0.00000 0 1,968

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.

Exchange Symbol Premium (-)
Discount (+)
Spread Open Intrest 24h Volume Expiry Date
FTX (Derivatives) ALT-0326 -0.307 0.20 312,649 88,544 26/3/2021
BTSE (Futures) BBAXH21 -0.797 0.38 53,634 12,319 26/3/2021
BTSE (Futures) BBAXM21 -2.363 0.62 16,911 3,686 25/6/2021

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
FTX (Derivatives) ALT-PERP -0.107 0.10 0.05520 17,593,982 22,481,852
Gate.io (Futures) ALT_USDT -3.246 0.00 0.01000 2 1,634

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 0.011 0.03 0.00000 198,690 2,175
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
BTSE (Futures) BDIPFC -0.275 0.20 0.00000 7,313 49,138

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:

KNC
XRP -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.