There is a big difference between spot trading and playing around with derivatives. While they both have a similar outcome, the core approach is very different. Recent statistics seem to indicate bigger amounts of Bitcoin are moving from spot exchanges to derivatives platforms. 

Fluctuating Outflows are Common

There are many reasons to trade spot or through derivatives. Both options provide exposure to different cryptocurrency assets. Making money with either type of trading is certainly possible, although the results will vary. Successfully playing around with derivatives can yield much higher profits compared to spot trading. Users leverage their market position to increase exposure, either for better or worse. 

During certain market conditions, one option might be more successful than the others. If Bitcoin turns bearish, there is seemingly less interest in spot trading. Certainly to be expected, considering how most markets will be dragged down by Bitcoin in the process. Very few assets are capable of holding their own during a bearish trend. This has, once again, become apparent in the past few days. 

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Blocdesk Bitcoin Spot to Derivatives
Source: CryptoQuant

Looking at the chart above, it is evident that spot trading is losing a bit of ground during this sideways-bearish momentum. More Bitcoin is moving from spot exchanges to their derivatives-oriented counterparts. Wild fluctuations are visible when looking at this volume, However, the most recent spike is significant. 

On August 30, 546.2044 BTC moved from spot to derivatives platforms. Yesterday, that amount increased sixfold to 3,389 BTC. A very interesting trend. Seeking exposure to Bitcoin and altcoins under the current market conditions can yield significant returns.

Current Derivatives Exchange Rankings

Judging by the volume rankings for derivatives exchanges, several platforms noted an increase in volume lately. Binance JEX, Liquid Perpetuals, GMO Japan, HTC (Futures) DueDEX, and Bithumb Futures appear to be the main beneficiaries.

BlocDesk Derivatives Volume 7d
Source: CoinGecko

However, these are also the platforms currently noting a drop-off in volume, for the most part. That isn’t necessarily an indication of Bitcoin reversing its bearish course, though. The markets are still in a very uneasy state.

What is remarkable is how the top derivatives platforms are all centralized. Although a few decentralized offerings exist, they are recording under half a million in daily volume. That is still more than Binance JEX or Liquid Perpetuals, making this entire situation all the more intriguing.

BlocDesk Bitcoin Derivatives Volume
Source: CoinGecko

Huobi Futures remains the “king” in terms of overall volume, but competition should start heating up soon. Increasing one’s exposure to Bitcoin is always a worthwhile option.