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 0.048 0.15 6,572,640 25,156,063 26/5/2020
Huobi Futures XRP_CQ 0.284 0.14 3,736,130 23,554,881 25/11/2020
Huobi Futures XRP_CW -0.237 0.17 1,602,300 17,134,734 7/7/2020
Huobi Futures XRP_CW -0.013 0.17 1,790,520 16,965,167 21/7/2020
OKEx (Futures) XRP-USD-201225 0.283 0.00 3,440,970 15,227,250 25/11/2020
Huobi Futures XRP_CW -0.039 0.14 1,431,610 13,565,230 31/6/2020
Huobi Futures XRP_CW -0.074 0.17 1,865,380 13,179,328 14/7/2020
Huobi Futures XRP_CW -0.058 0.14 1,334,750 12,603,021 4/8/2020
Huobi Futures XRP_CW -0.049 0.20 1,064,840 11,022,936 10/6/2020
Huobi Futures XRP_CQ 0.247 0.14 6,724,410 10,767,647 25/8/2020
OKEx (Futures) XRP-USD-200821 -0.065 0.00 1,103,100 8,174,370 21/7/2020
OKEx (Futures) XRP-USD-200710 -0.099 0.00 1,170,710 7,542,370 10/6/2020
Huobi Futures XRP_NW -0.382 0.17 1,442,210 7,380,957 21/7/2020
OKEx (Futures) XRP-USD-200904 -0.065 0.00 769,110 6,483,550 4/8/2020
Huobi Futures XRP_CW 0.040 0.17 1,540,180 6,387,000 28/7/2020
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 0.320 0.16 951,150 5,425,106 11/8/2020
Huobi Futures XRP_NW 0.403 0.18 4,698,610 5,330,038 25/8/2020
Huobi Futures XRP_NW -0.325 0.18 744,990 4,872,032 7/7/2020
Huobi Futures XRP_CW -0.033 0.14 1,523,600 4,528,230 18/8/2020
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
OKEx (Futures) XRP-USD-200814 -0.106 0.00 1,004,300 3,724,090 14/7/2020
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-200828 -0.002 0.00 1,041,070 2,764,560 28/7/2020
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
Huobi Futures XRP_NW 0.003 0.15 685,660 2,561,377 12/5/2020
Huobi Futures XRP_NW -0.250 0.17 1,249,110 2,556,003 28/7/2020
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
OKEx (Futures) XRP-USD-210326 -0.190 0.00 636,040 2,457,840 26/2/2021
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
OKEx (Futures) XRP-USD-200925 0.005 0.00 5,141,860 2,301,520 25/8/2020
Huobi Futures XRP_CW -0.074 0.15 1,002,680 2,212,002 17/6/2020
Huobi Futures XRP_NW -0.055 0.14 889,580 2,193,701 4/8/2020
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
OKEx (Futures) XRP-USD-200911 0.060 0.00 830,590 1,590,560 11/8/2020
OKEx (Futures) XRP-USD-200918 -0.023 0.00 842,100 1,493,560 18/8/2020
OKEx (Futures) XRP-USD-200717 -0.093 0.00 898,350 1,318,090 17/6/2020
Huobi Futures XRP_CW -0.001 0.14 1,134,060 1,305,843 11/8/2020
Huobi Futures XRP_NQ -0.072 0.18 383,350 1,220,442 26/2/2021
Huobi Futures XRP_NW 0.288 0.14 1,494,580 1,189,108 18/8/2020
Huobi Futures XRP_NQ -0.165 0.18 1,943,720 1,160,866 25/11/2020
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
BitMEX XRPU20 0.655 0.14 11,308,454 946,573 25/8/2020
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
Kraken (Futures) FI_XRPUSD_200925 -0.040 0.18 0 544,139 25/8/2020
BitMEX XRPZ20 1.767 0.14 610,634 423,256 25/11/2020
Kraken (Futures) FI_XRPUSD_201225 0.199 0.14 0 249,554 25/11/2020
FTX (Derivatives) XRP-0925 0.091 0.16 945,079 209,277 25/8/2020
FTX (Derivatives) XRP-0626 0.392 0.17 1,099,115 101,684 26/5/2020
FTX (Derivatives) XRP-1225 0.017 0.13 98,449 55,364 25/11/2020
Kraken (Futures) FI_XRPUSD_200626 -0.110 0.16 0 48,323 26/5/2020
Kraken (Futures) FI_XRPUSD_200828 2.879 0.11 0 7,439 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
Bybit XRPUSD -0.079 0.14 0.01000 24,200,748 48,059,596
FTX (Derivatives) XRP-PERP -0.048 0.12 0.03840 23,177,385 7,054,103
Binance (Futures) XRPUSDT 0.010 0.14 0.01000 16,496,074 70,304,128
CoinTiger (Futures) XRPUSDT -0.102 0.14 0.01000 16,493,927 70,416,744
BitMEX XRPUSD -0.059 0.14 0.01000 8,186,823 15,221,845
Bitforex (Futures) SWAP-USD-XRP -0.315 0.39 0.02100 6,936,295 4,738,442
Phemex (Futures) XRPUSD -0.079 0.14 0.01000 6,464,496 4,014,977
OKEx (Futures) XRP-USD-SWAP -0.035 0.00 -0.01006 4,852,840 9,111,690
BitZ (Futures) 104 0.000 0.14 0.00000 3,044,216 16,190,514
Phemex XRPUSD -0.066 0.16 0.01000 2,697,170 18,080,031
Kraken (Futures) PI_XRPUSD 0.079 0.14 -62.55020 1,196,294 4,759,112
Prime XBT XRP/USD 0.000 0.40 0.00000 716,915 3,291,210
MXC (Futures) XRP_USDT -0.079 0.18 0.08000 528,262 6,326,878
Prime XBT XRP/BTC 0.000 4.17 0.00000 322,595 128,238
Gate.io (Futures) XRP_USD -0.197 0.00 0.01000 135,651 301,006
Binance (Futures) XRPUSD_PERP -0.265 0.16 0.01000 101,470 3,126,484
BaseFEX XRPXBT 1.353 3.07 0.01000 97,774 975,600
Hopex XRPUSDT 0.020 0.00 0.00000 92,196 7,045,501
Biki (Futures) 8 -0.033 0.20 0.01000 0 146,037,004
Huobi Futures XRP-USD 0.094 0.10 0.00280 0 24,033,777
ZBG Futures XRP_USDT 0.000 0.00 0.00000 0 14,917,883
GMO Japan (Futures) XRP_JPY 0.000 0.61 0.00000 0 5,948,305
HBTC (Futures) XRP-SWAP-USDT -0.001 0.18 -0.00471 0 5,592,876
Delta Exchange XRPUSDT -0.034 0.14 0.01000 0 477,413
Delta Exchange XRPBTC 0.162 0.14 0.01000 0 307,088
BHEX (Futures) XRP-SWAP 0.108 0.23 0.00412 0 27,563
HBTC (Futures) XRP-SWAP -0.117 0.18 -0.04812 0 5,718

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:

KNC
XRP -0.01

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.