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
Binance (Futures) XRPUSD_231229 -1.595 0.02 866,580 500,495 29/12/2023
Binance (Futures) XRPUSD_230929 -0.661 0.02 1,225,110 467,667 29/9/2023
OKX (Futures) XRP-USDT-230929 -0.133 0.09 13,310 72,779 29/9/2023
OKX (Futures) XRP-USD-230929 -0.553 0.08 2,562,490 53,908 29/9/2023
OKX (Futures) XRP-USDT-231229 -1.728 0.12 6,928 28,008 29/12/2023
OKX (Futures) XRP-USD-231229 -1.732 0.18 1,580,620 16,209 29/12/2023

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
C-Trade XRPUSDT -0.141 0.04 0.01000 249,525,838 6,660,037
Binance (Futures) XRPUSDT 0.089 0.02 0.00308 127,566,941 196,469,248
Bybit (Futures) XRPUSDT 0.060 0.02 0.01000 87,824,732 70,705,636
Bitrue (Futures) XRP-USDT 0.180 0.02 0.00311 68,507,775 122,095,158
Bybit XRPUSD 0.089 0.03 -0.07580 46,632,043 75,195,130
Bybit (Futures) XRPUSD 0.080 0.02 0.01000 39,798,330 15,336,692
Bybit XRPUSDT 0.059 0.03 -0.04920 36,833,865 75,852,151
BingX (Futures) XRP-USDT 0.120 0.02 0.02600 29,296,942 34,417,803
FTX (Derivatives) XRP-PERP 1.660 0.61 -2.94000 29,204,183 206,317,908
ZBG Futures XRP_USDT -0.065 0.19 0.01000 23,028,715 4,646,661
Binance (Futures) XRPUSD_PERP 0.111 0.02 -0.00170 19,083,350 16,169,042
MEXC Global (Futures) XRP_USDT 0.057 0.02 0.01090 18,759,833 91,258,202
Phemex (Futures) XRP-PERPUSDT 0.044 0.02 0.00204 18,304,934 56,500,233
Phemex (Futures) XRP-PERPUSD 0.040 0.04 0.00999 15,132,092 47,937,298
MEXC (Futures) XRP_USDT 0.040 0.02 0.00300 13,504,244 34,854,694
Prime XBT XRP/USD 0.000 1.96 0.00000 12,890,700 22,367
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
OKEx (Futures) XRP-USDT-SWAP -0.017 0.05 -0.01923 9,264,748 56,737,392
Prime XBT XRP/BTC 0.000 5.00 0.00000 8,142,500 145
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
BitMEX XRPUSD -0.119 0.02 0.01000 4,437,237 3,161,817
Gate.io (Futures) XRP_USDT 0.080 16.67 0.00350 3,661,711 5,312,523
WhiteBIT Futures XRP_PERP 0.040 0.12 0.01000 3,566,035 250,518
BTSE (Futures) XRPPFC 0.039 0.09 0.00000 3,326,134 2,147,451
Bybit (Futures) XRPPERP 0.140 0.06 0.01000 3,196,050 111,377
Bitforex (Futures) SWAP-USD-XRP 0.120 0.20 -0.07171 2,943,925 23,353,395
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
CoinTR Pro (Derivatives) XRPUSDT 0.040 0.00 0.01000 2,392,901 105,044,297
Huobi Futures XRP-USDT 0.018 2.04 0.01000 1,431,426 12,163,910
HTX Futures XRP-USDT 0.028 1.96 0.01000 1,408,247 5,531,963
Bitfinex (Futures) XRPF0:USTF0 0.010 0.02 0.00000 1,151,477 223,760
Bitget Futures XRPUSD 0.000 0.06 -0.09975 1,093,603 2,391,539
Kraken (Futures) PI_XRPUSD -0.060 0.04 -75.68058 1,082,001 814,624
Stormgain Futures XRP-PERPUSDT 0.000 0.09 0.00400 734,509 1,356,463
CoinEx (Futures) XRP-USDT -0.040 0.06 -0.01702 562,239 1,387,788
Binance (Futures) XRPBUSD 0.091 0.02 0.00925 392,894 6,439,439
BitZ (Futures) XRP_USDT 0.000 0.23 0.00000 338,754 1,975,274
Opnx Derivatives XRP-OUSD-SWAP-LIN -0.713 0.00 0.00009 313,950 60,531
HTX Futures XRP-USD 0.132 1.96 -0.00686 309,340 5,569,622
Deribit XRP_USDC-PERPETUAL 0.060 0.04 0.00007 227,371 446,137
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
MEXC (Futures) XRP_USD 0.100 0.02 -0.00150 163,512 8,434,185
WOO X (Futures) PERP_XRP_USDT 0.012 0.04 -0.00633 133,445 623,003
BTSE (Futures) XRP-PERP 0.108 0.11 0.00019 115,105 1,645,679
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 0.058 0.10 -0.00298 85,025 18,586
Hyperliquid XRP-USD 0.092 0.03 -0.00327 58,479 375,848
Kwenta Derivatives XRP_SUSD 0.000 0.00 -0.03975 45,145 147,622
HitBTC (Derivatives) XRPUSDT_PERP 0.100 0.08 0.01000 44,249 2,742,732
Drift Protocol XRP-PERP 0.000 0.00 0.00080 37,299 1,670
ZB (Derivatives) XRP_USDT -0.052 0.16 0.01000 36,026 37,576,537
Aevo XRP-PERP 0.000 0.02 -0.00120 16,874 537
MUFEX XRPUSDT 0.040 0.08 0.01000 12,717 866,670
AscendEX (BitMax) (Futures) XRP-PERP 0.040 0.00 0.01000 12,155 3,043,872
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
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
XT.COM (Derivatives) XRP_USDT 0.100 0.00 0.03275 0 99,457,922
Deepcoin (Derivatives) XRPUSDT 0.075 0.01 0.00340 0 55,954,090
Biki (Futures) 8 -0.062 0.32 0.10041 0 52,805,491
Fairdesk Derivatives XRP-USDT-PERP 0.079 -2.39 0.01000 0 40,884,888
BTCC Futures XRPUSDT 0.014 0.06 0.00000 0 29,865,756
Bitmart Futures XRPUSDT 0.096 0.02 0.00242 0 13,329,319
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
Deepcoin (Derivatives) XRPUSD 0.033 0.04 -0.02477 0 5,099,551
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
Toobit Futures XRP-SWAP-USDT 0.074 0.06 0.01000 0 3,722,021
BitMake Futures XRPUSDT 0.020 0.04 0.00000 0 2,817,333
HBTC (Futures) XRP-SWAP-USDT -0.012 0.11 -0.01304 0 2,388,540
XT.COM (Derivatives) XRP_USD 0.057 0.00 0.00310 0 2,334,600
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
Coincatch Derivatives XRPUSD_DMCBL 0.101 0.11 -0.05000 0 303,845
Coincatch Derivatives XRPUSDT_UMCBL 0.043 0.02 -0.03860 0 263,018
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
Helix (Futures) XRP/USDT PERP 1.463 0.17 0.00040 0 4,082
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
FTX (Derivatives) ALT-PERP -9.888 0.60 10.36560 5,825,356 8,460,075
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
MEXC (Futures) ALT_USDT -0.877 3.86 0.04130 -72 796,070

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 -0.068 0.13 0.00000 605,588 1,279
BingX (Futures) BTCDOM-USDT -0.003 0.01 -0.01020 542,271 1,355,399
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT 0.129 0.02 -0.00951 6,646 1,370,812
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.