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-210625 -1.694 0.13 58,352 194,088,059 25/6/2021
Huobi Futures XRP_CQ -1.055 0.02 17,742,710 158,858,193 25/6/2021
OKEx (Futures) XRP-USD-210625 -1.313 0.20 10,899,990 74,485,186 25/6/2021
Binance (Futures) XRPUSD_210625 -1.383 0.20 17,034,710 37,696,750 25/6/2021
Huobi Futures XRP_NW -0.500 0.08 2,293,270 31,604,264 14/5/2021
Huobi Futures XRP_NQ -4.057 0.08 11,827,740 24,310,092 24/9/2021
OKEx (Futures) XRP-USD-210924 -4.780 0.20 4,744,020 21,756,691 24/9/2021
Huobi Futures XRP_CW -0.118 0.12 3,916,330 20,708,854 14/5/2021
OKEx (Futures) XRP-USDT-210924 -5.406 0.30 23,573 20,128,063 24/9/2021
OKEx (Futures) XRP-USD-210514 0.475 0.27 1,304,410 19,490,067 14/5/2021
OKEx (Futures) XRP-USDT-210514 0.316 0.33 6,694 17,742,603 14/5/2021
OKEx (Futures) XRP-USD-210521 0.092 0.33 1,033,350 15,699,585 21/5/2021
OKEx (Futures) XRP-USDT-210521 -0.176 0.26 5,068 14,379,665 21/5/2021
Binance (Futures) XRPUSD_210924 -5.363 0.35 10,983,820 11,518,266 24/9/2021
FTX (Derivatives) XRP-0625 -1.830 0.32 22,783,843 10,612,749 25/6/2021
Huobi Futures XRP_NW -0.060 0.32 1,883,860 8,208,726 21/5/2021
Huobi Futures XRP_NQ -2.899 0.04 5,092,920 4,920,385 25/6/2021

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
Binance (Futures) XRPUSDT -0.068 0.02 0.01000 445,809,393 2,689,794,324
Huobi Futures XRP-USDT 0.017 0.01 0.05042 360,089,603 843,207,954
FTX (Derivatives) XRP-PERP 0.251 0.02 0.04080 214,473,636 491,481,522
Bybit XRPUSD 0.073 0.02 0.01000 200,958,274 1,789,124,456
Binance (Futures) XRPUSD_PERP 0.105 0.02 0.01000 71,194,860 633,874,201
BitMEX XRPUSD -0.171 0.22 0.15080 42,108,987 104,278,915
Huobi Futures XRP-USD -0.004 0.01 0.01000 28,323,730 223,251,309
ZBG Futures XRP_USDT -0.065 0.19 0.01000 23,028,715 4,646,661
Phemex (Futures) XRPUSD -0.195 0.14 0.05806 21,625,182 13,604,297
Bitforex (Futures) SWAP-USD-XRP -0.187 0.07 -0.03800 20,446,146 13,153,074
OKEx (Futures) XRP-USD-SWAP 0.185 0.08 -0.00266 17,056,820 75,739,846
BitZ (Futures) XRP_USDT 0.365 0.27 0.00000 15,631,229 160,487,323
Bitget Futures CMT_XRPUSDT -0.195 0.08 0.04010 8,749,815 150,176,112
Bitget Futures XRPUSD -0.137 0.06 -0.02251 6,914,359 3,358,482
BitZ (Futures) 104 0.016 0.17 0.00000 6,801,657 107,361,215
Kraken (Futures) PI_XRPUSD 0.029 0.13 -32.26217 5,194,696 12,093,354
MXC (Futures) XRP_USDT 0.044 0.24 0.01000 4,608,221 40,492,398
Phemex XRPUSD -0.066 0.16 0.01000 2,697,170 18,080,031
AscendEX (BitMax) (Futures) XRP-PERP -0.033 0.00 0.02262 223,532 703,759
Hopex XRPUSDT -18.258 0.00 0.00000 190,828 1,500
Gate.io (Futures) XRP_USD -0.382 0.00 0.01000 136,291 161,299
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 -0.109 0.01 0.01000 0 780,409,894
OKEx (Futures) XRP-USDT-SWAP 0.000 0.10 0.02680 0 187,584,794
Biki (Futures) 8 -0.062 0.32 0.10041 0 52,805,491
GMO Japan (Futures) XRP_JPY 0.000 0.30 0.00000 0 26,183,873
Gate.io (Futures) XRP_USDT -0.007 0.00 0.01280 0 14,366,277
Stormgain Futures XRP-PERPUSDT 0.000 0.41 0.00400 0 9,388,765
MyCoinStory XRPUSDT_QUANTO_PERP -0.599 0.00 0.21825 0 2,415,349
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-USDT -0.007 0.19 0.00773 0 1,104,063
HBTC (Futures) XRP-SWAP 0.161 0.08 0.00574 0 92,692
CoinFLEX (Futures) XRP-USD-SWAP-LIN -3.473 8.35 0.00000 0 36,765
Bibox (Futures) 4XRP_USDT 0.000 0.00 0.00000 0 29,364
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
Prime XBT XRP/USD 0.000 0.19 0.00000 0 2,135

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-0625 -1.935 0.61 2,479,751 5,618,885 25/6/2021
BTSE (Futures) BBAXM21 0.445 0.46 423,690 26,425 25/6/2021
BTSE (Futures) BBAXK21 -4.569 0.50 124,478 26,124 28/5/2021

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 -0.339 0.22 0.03600 21,636,536 56,588,573
Gate.io (Futures) ALT_USDT 3.796 0.00 0.01000 36 5,848

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 -0.013 0.21 0.00000 571,723 176,894
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
BTSE (Futures) BDIPFC -0.038 0.52 0.00000 6,009 44,416

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.