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
BTCC Futures XRP-WEEKLY -0.042 0.22 25,378,741 36,324,687 2/12/2022
BTCC Futures XRP-QUARTERLY -0.085 0.21 25,351,062 28,304,447 31/12/2022
Binance (Futures) XRPUSD_221230 0.979 0.02 2,163,370 3,318,157 30/12/2022
OKX (Futures) XRP-USD-221230 0.408 0.04 2,570,380 3,170,477 30/12/2022
Binance (Futures) XRPUSD_230331 0.814 0.07 953,260 2,801,015 31/3/2023
FTX (Derivatives) XRP-1230 -10.744 0.62 1,499,875 2,430,722 30/12/2022
OKX (Futures) XRP-USDT-221230 0.338 0.01 26,569 2,184,649 30/12/2022
Huobi Futures XRP_NW -0.032 4.65 29,990 1,884,390 2/12/2022
Huobi Futures XRP_CW 0.880 2.44 22,290 992,260 2/12/2022
OKX (Futures) XRP-USDT-230331 0.121 0.08 7,437 908,680 31/3/2023
OKX (Futures) XRP-USD-230331 0.456 0.09 664,280 405,052 31/3/2023
BTCC Futures XRP-QUARTERLY 0.019 0.22 263,688 263,721 31/3/2023

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
Bitrue (Futures) XRP-USDT 0.049 0.02 -0.00412 140,554,088 930,726,788
Binance (Futures) XRPUSDT 0.100 0.02 -0.00390 126,956,311 1,072,077,994
BTCEX (Futures) XRP-USDT-PERPETUAL 0.049 0.02 -0.00350 86,540,281 762,871,508
BingX (Futures) XRP-USDT 0.000 0.12 -0.01000 56,725,294 108,475,036
Bybit XRPUSD 0.089 0.03 -0.07580 46,632,043 75,195,130
Bybit (Futures) XRPUSDT 0.098 0.02 0.01000 46,098,401 274,538,929
Bybit XRPUSDT 0.059 0.03 -0.04920 36,833,865 75,852,151
Bybit (Futures) XRPUSD -0.049 0.02 0.01000 35,207,588 59,322,496
FTX (Derivatives) XRP-PERP 1.660 0.61 -2.94000 29,204,183 206,317,908
BTCC Futures XRPUSDT -0.037 0.22 0.00000 25,380,607 26,905,856
ZBG Futures XRP_USDT -0.065 0.19 0.01000 23,028,715 4,646,661
AAX Futures XRPUSDTFP 0.684 9.52 -0.01056 12,450,157 47,426,125
Binance (Futures) XRPUSD_PERP 0.111 0.02 -0.00762 12,244,100 97,587,621
Bitget Futures CMT_XRPUSDT -0.026 0.07 -0.00459 11,812,686 50,683,965
OKEx (Futures) XRP-USDT-SWAP -0.017 0.05 -0.01923 9,264,748 56,737,392
Prime XBT XRP/USD 0.000 0.24 0.00000 8,700,600 175,123
BitZ (Futures) 104 0.016 0.17 0.00000 6,801,657 107,361,215
Prime XBT XRP/BTC 0.000 4.00 0.00000 6,465,300 14,977
OKEx (Futures) XRP-USD-SWAP 0.081 0.06 -0.02160 6,399,920 30,361,988
BitMEX XRPUSD -0.119 0.02 0.01000 4,437,237 3,161,817
MEXC Global (Futures) XRP_USDT 0.147 0.02 0.00700 4,195,987 56,937,015
Gate.io (Futures) XRP_USDT 0.123 20.00 0.01000 3,134,736 5,781,286
Phemex XRPUSD -0.066 0.16 0.01000 2,697,170 18,080,031
Hopex XRPUSDT 0.049 0.00 0.00000 2,634,147 81,154,950
Huobi Futures XRP-USDT 0.022 2.44 0.01000 2,540,998 8,073,148
MXC (Futures) XRP_USDT -0.026 0.12 0.00000 2,514,230 2,224,183
Binance (Futures) XRPBUSD 0.099 0.02 -0.01235 2,397,753 163,530,429
Kraken (Futures) PI_XRPUSD 0.000 0.10 -81.44417 1,554,961 3,626,010
Phemex (Futures) XRPUSD 0.049 0.05 0.01000 1,451,688 28,814,040
Bitforex (Futures) SWAP-USD-XRP 0.155 0.25 -0.01795 1,338,587 59,953,842
Bitget Futures XRPUSD 0.000 0.06 -0.09975 1,093,603 2,391,539
Crypto.com Exchange (Futures) XRPUSD-PERP 0.020 0.25 -0.00188 939,905 939,905
Bitfinex (Futures) XRPF0:USTF0 -0.033 0.04 0.00000 676,809 7,327,656
CoinEx (Futures) XRP-USDT -0.024 0.02 -0.01762 554,423 8,030,041
BitZ (Futures) XRP_USDT 0.000 0.23 0.00000 338,754 1,975,274
Huobi Futures XRP-USD 0.132 2.44 0.01000 261,950 261,647
Deribit XRP_USDC-PERPETUAL -0.049 0.02 -0.00290 167,670 94,781
WOO Network (Futures) PERP_XRP_USDT 0.029 0.07 -0.00064 142,501 953,472
BaseFEX XRPXBT 1.353 3.07 0.01000 97,774 975,600
HitBTC (Derivatives) XRPUSDT_PERP -0.220 0.07 0.01000 59,574 4,822,989
ZB (Derivatives) XRP_USDT -0.052 0.16 0.01000 36,026 37,576,537
AscendEX (BitMax) (Futures) XRP-PERP -0.315 0.00 -0.00363 24,961 61,575
CoinFLEX (Futures) XRP-USD-SWAP-LIN 0.000 0.10 0.00000 17,150 368
Gate.io (Futures) XRP_USD -7.692 50.00 0.01000 6,210 260
MEXC Global (Futures) XRP_USD 0.172 0.05 0.00830 3,005 72,617,662
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
CoinTiger (Futures) XRPUSDT 0.066 0.02 -0.00398 0 321,818,997
Biki (Futures) 8 -0.062 0.32 0.10041 0 52,805,491
Deepcoin (Derivatives) XRPUSD 0.156 0.20 0.00949 0 18,976,909
GMO Japan (Futures) XRP_JPY 0.000 0.10 0.00000 0 14,454,462
Stormgain Futures XRP-PERPUSDT 0.000 0.09 0.00400 0 9,679,848
BIT (Futures) USD-M:XRP-USD-PERPETUAL 0.044 0.13 -0.06622 0 7,875,823
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
HBTC (Futures) XRP-SWAP-USDT -0.012 0.11 -0.01304 0 2,388,540
Deepcoin (Derivatives) XRPUSDT 0.048 0.05 -0.00970 0 2,366,302
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
Bitfinex (Futures) XRPF0:BTCF0 0.067 0.04 -0.01241 0 304,557
HBTC (Futures) XRP-SWAP -0.063 0.01 0.02477 0 150,176
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
Bibox (Futures) 4XRP_USDT 0.000 0.02 0.00000 0 22,000
BTSE (Futures) XRPPFC 0.210 0.32 0.00000 0 17,239
MCS XRPUSDT_QUANTO_PERP -0.804 0.10 0.01000 0 98
Drift Protocol XRP-PERP 0.000 0.00 0.06224 0 0

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-1230 -10.622 0.05 318,710 436,869 30/12/2022

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
Gate.io (Futures) ALT_USDT -3.606 4.18 0.01000 1,950 41,819
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
Bitfinex (Futures) BTCDOMF0:USTF0 0.014 0.04 0.00000 274,178 24,944
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT -0.094 0.02 0.01000 6,097 3,362,530
BTSE (Futures) BDIPFC -0.143 0.30 0.00000 2,482 41,193
BTSE (Futures) BTCDOMPFC 0.526 8.07 0.00000 0 12,589,606

Negative correlation with XRP

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.