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.

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
Huobi Futures XRP_CQ -1.484 0.13 9,679,540 26,321,301 25/8/2020
Huobi Futures XRP_CQ 0.048 0.15 6,572,640 25,156,063 26/5/2020
Huobi Futures XRP_CW -0.237 0.17 1,602,300 17,134,734 7/7/2020
Huobi Futures XRP_CW -0.039 0.14 1,431,610 13,565,230 31/6/2020
OKEx (Futures) XRP-USD-200925 -1.453 0.00 8,166,010 13,114,840 25/8/2020
Huobi Futures XRP_CW -0.049 0.20 1,064,840 11,022,936 10/6/2020
OKEx (Futures) XRP-USD-200710 -0.099 0.00 1,170,710 7,542,370 10/6/2020
Huobi Futures XRP_CW -0.290 0.13 2,030,220 6,964,796 14/7/2020
Huobi Futures XRP_NW 0.030 0.15 1,032,010 6,293,498 17/6/2020
OKEx (Futures) XRP-USD-200731 -0.090 0.00 1,213,410 6,229,120 31/6/2020
OKEx (Futures) XRP-USD-200807 -0.186 0.00 1,746,350 5,922,650 7/7/2020
Huobi Futures XRP_NW -0.325 0.18 744,990 4,872,032 7/7/2020
OKEx (Futures) XRP-USD-201225 -1.756 0.00 1,973,130 4,558,840 25/11/2020
Huobi Futures XRP_NW -0.357 0.17 1,118,930 3,911,135 14/7/2020
Huobi Futures XRP_CW -0.008 0.15 876,360 3,803,813 24/6/2020
Huobi Futures XRP_CW 0.100 0.15 815,020 3,628,916 5/5/2020
Huobi Futures XRP_CW 0.007 0.15 793,340 3,203,632 19/5/2020
Huobi Futures XRP_CW -0.121 0.11 3,281,550 3,094,674 26/5/2020
Huobi Futures XRP_CW 0.045 0.20 798,340 3,013,974 12/5/2020
Huobi Futures XRP_NW 0.249 0.11 1,240,510 3,000,113 10/6/2020
OKEx (Futures) XRP-USD-200821 -0.535 0.00 413,790 2,886,130 21/7/2020
BitMEX XRPU20 -0.081 0.14 14,185,814 2,737,031 25/8/2020
Huobi Futures XRP_NW 0.155 0.15 836,240 2,727,218 19/5/2020
OKEx (Futures) XRP-USD-200619 0.141 0.00 513,000 2,613,670 19/5/2020
OKEx (Futures) XRP-USD-200814 -0.329 0.00 936,040 2,595,880 14/7/2020
Huobi Futures XRP_NW 0.003 0.15 685,660 2,561,377 12/5/2020
Huobi Futures XRP_NW 0.133 0.15 1,181,550 2,497,142 24/6/2020
OKEx (Futures) XRP-USD-200612 0.005 0.00 663,710 2,462,880 12/5/2020
Huobi Futures XRP_NW 0.091 0.20 874,870 2,393,361 31/6/2020
OKEx (Futures) XRP-USD-200626 0.152 0.00 1,388,480 2,306,870 26/5/2020
Huobi Futures XRP_CW -0.074 0.15 1,002,680 2,212,002 17/6/2020
OKEx (Futures) XRP-USD-200605 -0.005 0.00 653,070 2,178,300 5/5/2020
OKEx (Futures) XRP-USD-200724 0.024 0.00 1,054,640 1,738,490 24/6/2020
Huobi Futures XRP_CW 0.070 0.16 751,290 1,716,933 3/6/2020
OKEx (Futures) XRP-USD-200703 0.072 0.00 786,410 1,630,870 3/6/2020
Huobi Futures XRP_NW -0.497 0.17 965,490 1,603,663 21/7/2020
Huobi Futures XRP_NQ -1.786 0.13 1,363,100 1,441,503 25/11/2020
OKEx (Futures) XRP-USD-200717 -0.093 0.00 898,350 1,318,090 17/6/2020
Huobi Futures XRP_NW 0.122 0.11 4,039,010 973,573 26/5/2020
Huobi Futures XRP_NW 0.412 0.16 839,440 969,384 3/6/2020
Huobi Futures XRP_NQ 0.110 0.15 6,099,160 677,716 19/5/2020
BitMEX XRPM20 0.255 0.15 7,544,074 596,897 26/5/2020
Kraken (Futures) FI_XRPUSD_200731 -0.501 0.21 0 548,551 31/6/2020
FTX (Derivatives) XRP-0925 -1.416 0.19 1,094,525 358,202 25/8/2020
Kraken (Futures) FI_XRPUSD_200925 0.137 0.13 0 184,533 25/8/2020
FTX (Derivatives) XRP-0626 0.392 0.17 1,099,115 101,684 26/5/2020
Kraken (Futures) FI_XRPUSD_200626 -0.110 0.16 0 48,323 26/5/2020
Kraken (Futures) FI_XRPUSD_200828 -0.684 0.17 0 45,925 28/7/2020

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
FTX (Derivatives) XRP-PERP 0.001 0.14 0.00130 41,464,479 8,401,226
Binance (Futures) XRPUSDT -0.057 0.13 0.08983 39,903,309 105,841,957
Bybit XRPUSD -0.035 0.13 0.05140 31,327,034 43,628,573
BitMEX XRPUSD -0.225 0.13 0.03300 17,407,505 27,871,162
BitZ (Futures) 104 0.000 0.17 0.00000 8,933,398 32,331,878
Bitforex (Futures) SWAP-USD-XRP -0.311 0.35 0.04600 7,891,283 3,805,774
OKEx (Futures) XRP-USD-SWAP -0.087 0.00 0.02345 6,408,810 8,017,770
Kraken (Futures) PI_XRPUSD -0.035 0.13 192.66482 4,186,353 3,021,507
Phemex XRPUSD -0.066 0.16 0.01000 2,697,170 18,080,031
Phemex (Futures) XRPUSD -0.035 0.10 0.09026 2,230,949 8,534,785
MXC (Futures) XRP_USDT -0.069 0.13 0.00640 1,841,974 6,963,768
Gate.io (Futures) XRP_USD -0.173 0.00 0.01000 268,400 280,385
BaseFEX XRPXBT 1.353 3.07 0.01000 97,774 975,600
Biki (Futures) 8 -0.078 0.24 0.00999 0 164,472,319
Huobi Futures XRP-USD -0.138 0.10 0.02514 0 27,706,766
ZBG Futures XRP_USDT 0.000 0.13 0.00000 0 12,930,251
Hopex XRPUSDT -0.062 0.00 0.00000 0 8,601,144
GMO Japan (Futures) XRP_JPY 0.000 0.17 0.00000 0 6,302,785
Prime XBT XRP/USD 0.000 0.13 0.00000 0 2,282,352
HBTC (Futures) XRP-SWAP-USDT -0.134 0.14 0.00666 0 2,165,194
Delta Exchange XRPUSDT -0.332 0.17 0.04630 0 413,452
Prime XBT XRP/BTC 0.000 0.18 0.00000 0 165,437
HBTC (Futures) XRP-SWAP -0.100 0.10 0.00667 0 50,419
BHEX (Futures) XRP-SWAP 0.108 0.23 0.00412 0 27,563

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:

SNT KNC FTT
XRP -0.03 -0.01 -0.00

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

There is a group of other derivatives which can be utilized for the purpose of hedging, like crypto indexes.

Indexes can be partly correlated with XRP

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