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
- XRP Perpetual Swaps
- Future Contracts on Indexes with XRP embeded
- Perpetual Swaps on Indexes with XRP component
- Other crypto related Indexes (Perpetual Swaps)
- Negative correlation with XRP
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.