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
C-Trade XRPUSDT -0.141 0.04 0.01000 249,525,838 6,660,037
Bybit (Futures) XRPUSDT 0.000 0.02 0.01000 206,100,801 237,667,649
Binance (Futures) XRPUSDT 0.023 0.02 0.01000 181,330,311 440,433,563
WhiteBIT Futures XRP_PERP 0.000 0.02 -0.01175 131,928,894 51,142,030
OrangeX Futures XRP-USDT-PERPETUAL 0.000 0.00 0.01000 71,039,076 209,934,110
Bybit (Futures) XRPUSD -0.073 0.02 0.01000 70,959,470 23,100,969
XT.COM (Derivatives) XRP_USDT -0.025 0.02 0.01000 51,454,096 440,570,179
Bybit XRPUSD 0.089 0.03 -0.07580 46,632,043 75,195,130
MEXC (Futures) XRP_USDT -0.036 0.02 0.01000 39,420,604 70,740,319
Bitrue (Futures) XRP-USDT 0.202 0.02 0.01022 37,419,205 264,393,562
Bybit XRPUSDT 0.059 0.03 -0.04920 36,833,865 75,852,151
BingX (Futures) XRP-USDT 0.202 0.04 0.01340 33,572,432 41,560,137
Binance (Futures) XRPUSD_PERP -0.056 0.02 0.01000 33,427,200 41,165,618
Bitunix Futures XRP_USDT 0.057 0.02 0.02300 32,196,328 59,116,589
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
BVOX (Futures) XRP-SWAP-USDT -0.019 0.16 0.01000 26,519,931 89,248,907
CoinW (Futures) XRP/USDT 0.018 0.07 0.01000 25,451,420 100,956,673
ZBG Futures XRP_USDT -0.065 0.19 0.01000 23,028,715 4,646,661
WEEX (Futures) XRP-USDT 0.000 0.00 0.00009 22,899,969 25,467,810
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
Coincatch Derivatives XRPUSD_DMCBL 0.046 0.11 0.00880 19,473,922 514,368
Coincatch Derivatives XRPUSDT_UMCBL -0.013 0.02 0.01000 19,012,186 100,714,123
MEXC Global (Futures) XRP_USDT 0.057 0.02 0.01090 18,759,833 91,258,202
Toobit Futures XRP-SWAP-USDT 0.027 0.07 0.01000 17,842,010 62,640,713
BloFin (Futures) XRP-USDT 0.000 0.09 0.04787 16,531,516 14,951,135
KCEX (Futures) XRP_USDT 0.038 0.00 0.00250 16,272,725 11,849,581
Phemex (Futures) XRP-PERPUSDT 0.092 0.04 0.01000 15,695,050 11,029,025
Prime XBT XRP/USD 0.000 1.96 0.00000 14,163,600 217,734
Coincall XRP-USD 0.058 0.02 0.01000 13,794,267 298,565
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
PrimeXBT XRP/USD 0.000 1.82 0.00000 11,064,800 2,568,221
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
Gate.io (Futures) XRP_USDT -0.081 14.29 0.01000 7,648,333 28,740,462
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
XT.COM (Derivatives) XRP_USD -0.098 0.02 0.01870 102,250 2,857,730
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
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.