The best crypto options platforms offer a wide range of features and benefits that can appeal to both novice and experienced traders. Here are some of the key features to look for when choosing a platform:
- A user-friendly interface: The platform should be easy to navigate and use, with all the features clearly laid out.
- A wide range of assets: The platform should offer a wide variety of assets to trade, including major cryptocurrencies, altcoins, and fiat currencies.
- Advanced trading features: The platform should offer advanced trading features such as margin trading, stop-loss orders, and mobile trading.
- Customer support: The platform should have 24/7 customer support in case you need assistance with using the platform or making trades.
- Security: The platform should have robust security measures in place, such as two-factor authentication and cold storage for cryptocurrencies.
How to Trade Crypto Options
If you’re interested in trading crypto options, there are a few things you need to know before getting started. Here’s a step-by-step guide:
- Choose a platform: First, you’ll need to choose a platform that offers crypto options trading. Make sure to compare different platforms and select one that meets your needs.
- Open an account: Once you’ve chosen a platform, you’ll need to open an account and deposit funds into it. Depending on the platform, you may be able to use fiat currency or cryptocurrency.
- Select your trade: When you’re ready to start trading, select the type of option you want to trade as well as the expiry time. You’ll also need to decide how much you want to invest.
- Place your trade: Once you’ve selected your trade, all you need to do is place your order and wait for the expiry time. If the price of the asset goes in the direction you predicted, you’ll make a profit.
- Withdraw your funds: Once you’ve made a profit, you can withdraw your funds from the platform and into your personal account. Make sure to keep track of any taxes that may be due on your profits.
What is Options Trading?
Options trading is the process of speculating on the future price movement of a security, such as a stock, commodity, currency pair, or cryptocurrency. Options trading allows traders to bet on whether the price of an asset will rise or fall over a set period of time. Options contracts give the holder the right, but not the obligation, to buy or sell an asset at a predetermined price.
There are two types of options: call options and put options. Call options give the holder the right to buy an asset at a certain price, while put options give the holder the right to sell an asset at a certain price.
Options trading is a popular way to trade because it allows traders to speculate on the future price of an asset without having to own the asset itself. Options trading is a leveraged form of trading, which means that traders can control a large position with a small amount of capital.
Options trading is a risky form of trading and is not suitable for all investors. Before trading options, you should carefully consider your investment objectives, risks, charges, and expenses. The New York Stock Exchange (NYSE) is the world’s largest options exchange, and options trading is a popular way to trade on the NYSE.
What are the best crypto options exchanges for trading Bitcoin options?
People who learn about options are frequently perplexed about how and where to trade Bitcoin and cryptocurrency options. That’s where we come in, and we’ve now created this carefully curated list of the top Bitcoin option trading sites from which you can easily learn how to trade BTC options and also place trades on them. You should also be aware that not all cryptocurrency exchanges are created equal, nor do all exchange platforms have the ability to trade Bitcoin options contracts. Bitcoin option exchanges are currently a small industry with few established firms present. But any exchanges for Bitcoin options that are out there are adequate for the task.
So here are they:
- Bybit – USDC Options
- Deribit (best crypto options exchange for Bitcoin & Ethereum)
- Delta Exchange (best for Institutions use for all major Cryptos & Tokens)
- FTX Exchange (best for charting features)
1. Bybit – USDC Options
Bybit is a cryptocurrency derivatives exchange founded in March 2018. It is headquartered in Singapore with offices in Hong Kong. The exchange offers non-custodial Bitcoin and Ethereum perpetual contracts with up to 100x leverage. In July 2019, Bybit launched its USDT-Margined Futures contracts.
The advantage of Bybit is that it allows users to open long and short positions simultaneously. Bybit charges a 0.075% taker fee and a 0.025% maker fee.
Pros
- Bybit has a user-friendly interface and is easy to use.
- It allows users to open long and short positions simultaneously.
- The exchange offers 24/7 live customer support.
Cons
- Bybit does not offer any leverage for its options contracts.
2. FTX – USDC Options
FTX is a cryptocurrency derivatives exchange that was launched in May 2019. It is based in Singapore. The exchange offers non-custodial Bitcoin, Ethereum, and Ripple perpetual contracts with up to 100x leverage. In May 2020, FTX launched its USDT-Margined Futures contracts.
The advantage of FTX is that it allows users to open long and short positions simultaneously. FTX charges a 0.075% taker fee and a 0.025% maker fee. Read a FTX vs ByBit guide for a more detailed comparison of the platforms.
Pros
- FTX has a user-friendly interface and is easy to use.
- It allows users to open long and short positions simultaneously.
- The exchange offers 24/7 live customer support.
Cons
- FTX does not offer any leverage for its options contracts.
3. Deribit – USDC Options
Deribit is a cryptocurrency derivatives exchange that was launched in June 2016. It is based in the Netherlands. Deribit offers non-custodial Bitcoin and Ethereum perpetual contracts with up to 100x leverage. In May 2020, Deribit launched its USDT-Margined Futures contracts.
The advantage of Deribit is that it allows users to open long and short positions simultaneously. Deribit charges a 0.075% taker fee and a 0.025% maker fee.
Pros
- Deribit has a user-friendly interface and is easy to use.
- It allows users to open long and short positions simultaneously.
- The exchange offers 24/7 live customer support.
Cons
- Deribit does not offer any leverage for its options contracts.
