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
OKEx (Futures) XRP-USDT-220325 -0.788 0.08 22,769 53,787,753 25/3/2022
OKEx (Futures) XRP-USD-220325 -0.650 0.08 9,406,300 27,602,964 25/3/2022
Binance (Futures) XRPUSD_220325 -0.756 0.02 13,134,230 26,863,705 25/3/2022
Huobi Futures XRP_CQ -0.646 1.54 2,315,510 7,593,431 25/3/2022
Binance (Futures) XRPUSD_220624 -2.211 0.14 1,940,600 5,567,784 24/6/2022
FTX (Derivatives) XRP-0325 -0.991 0.29 6,878,661 3,319,307 25/3/2022
Huobi Futures XRP_CW 0.229 1.56 715,350 1,629,827 28/1/2022
Huobi Futures XRP_NW 0.150 1.56 503,540 1,208,162 4/2/2022
Huobi Futures XRP_NW -0.008 1.39 217,230 170,479 28/1/2022

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 0.236 0.02 0.01000 602,461,714 14,797,062
Binance (Futures) XRPUSDT 0.032 0.02 -0.00605 111,394,972 804,536,000
Bybit XRPUSD 0.094 0.02 0.01000 81,064,699 389,855,625
FTX (Derivatives) XRP-PERP -0.125 0.01 -0.05520 67,278,798 260,104,313
CoinFLEX (Futures) XRP-USD-SWAP-LIN 0.000 0.04 0.00060 44,911,108 688,672,623
Binance (Futures) XRPUSD_PERP -0.008 0.02 -0.01003 25,959,840 515,211,189
Bybit XRPUSDT -0.031 0.02 0.00370 24,846,806 185,774,844
ZBG Futures XRP_USDT -0.065 0.19 0.01000 23,028,715 4,646,661
Prime XBT XRP/USD 0.000 0.16 0.00000 13,732,900 200,959
Bitget Futures CMT_XRPUSDT -0.026 0.07 -0.00459 11,812,686 50,683,965
Prime XBT XRP/BTC 0.000 5.56 0.00000 11,131,800 4,730
OKEx (Futures) XRP-USDT-SWAP -0.046 0.04 -0.01618 9,924,874 96,799,794
Gate.io (Futures) XRP_USDT -0.047 14.29 -0.00340 9,146,449 25,728,718
BitMEX XRPUSD -0.040 0.06 0.01000 9,014,171 13,252,823
OKEx (Futures) XRP-USD-SWAP 0.026 0.08 -0.01297 7,697,360 57,778,428
Bitforex (Futures) SWAP-USD-XRP -0.020 0.16 -0.02800 7,412,644 217,706,284
BitZ (Futures) 104 0.016 0.17 0.00000 6,801,657 107,361,215
Phemex (Futures) XRPUSD 0.079 0.02 0.01000 6,314,176 24,883,890
MEXC Global (Futures) XRP_USDT -0.114 0.22 0.06030 5,088,360 1,347,274
Huobi Futures XRP-USD 0.072 1.56 0.00001 4,976,640 24,809,914
Huobi Futures XRP-USDT 0.024 1.56 0.00341 4,662,977 58,214,779
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
Kraken (Futures) PI_XRPUSD 0.063 0.17 11.06345 1,969,343 9,405,930
Bitget Futures XRPUSD 0.000 0.06 -0.09975 1,093,603 2,391,539
Binance (Futures) XRPBUSD -0.010 0.02 -0.00789 343,276 77,552,200
BitZ (Futures) XRP_USDT 0.000 0.23 0.00000 338,754 1,975,274
AscendEX (BitMax) (Futures) XRP-PERP 0.029 0.00 -0.00191 305,517 1,786,780
Hopex XRPUSDT -18.258 0.00 0.00000 190,828 1,500
BaseFEX XRPXBT 1.353 3.07 0.01000 97,774 975,600
Gate.io (Futures) XRP_USD 1.421 14.29 0.01000 22,280 7,308
MXC (Futures) XRP_USD -0.067 0.47 -0.04430 0 1,268,353,797
CoinTiger (Futures) XRPUSDT 0.057 0.02 -0.00605 0 241,363,808
Biki (Futures) 8 -0.062 0.32 0.10041 0 52,805,491
GMO Japan (Futures) XRP_JPY 0.000 0.13 0.00000 0 29,278,738
AAX Futures XRPUSDTFP 7.002 0.02 -0.01092 0 18,171,136
MyCoinStory XRPUSDT_QUANTO_PERP -0.281 0.00 0.18486 0 7,725,393
BTCEX (Futures) XRP-USDT-PERPETUAL 0.107 6.21 -0.35432 0 5,399,324
Bitfinex (Futures) XRPF0:USTF0 0.080 0.07 -0.00733 0 3,116,436
HBTC (Futures) XRP-SWAP-USDT -0.012 0.11 -0.01304 0 2,388,540
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
Stormgain Futures XRP-PERPUSDT 0.000 0.19 0.00400 0 1,332,660
BTSE (Futures) XRPPFC -0.104 0.24 0.00000 0 973,931
Crypto.com Exchange (Futures) XRPUSD-PERP 0.002 0.12 0.00001 0 778,678
Bitfinex (Futures) XRPF0:BTCF0 0.086 0.11 0.00000 0 198,201
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 38,495
MCS XRPUSDT_QUANTO_PERP 0.067 0.22 0.01000 0 281

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-0325 1.716 0.53 988,650 100,726 25/3/2022

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 0.164 0.10 0.10560 10,493,389 40,342,153
Gate.io (Futures) ALT_USDT 0.692 1.99 0.01000 399 12,161
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 -0.151 0.13 0.01417 1,029,496 105,482
Bitfinex (Futures) TBTCDOMF0:USTF0 0.060 0.17 -0.11774 163,844 109,181
Binance (Futures) BTCDOMUSDT 0.173 0.02 -0.03346 6,730 31,965,728
BTSE (Futures) BDIPFC 0.155 0.27 0.00000 3,399 17,862

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.