What You Need to Know About Crypto Options Trading

crypto options trading

Before beginning your Crypto Options trading journey, you must understand a few things. For example, you need to know what a Crypto Option is. This type of investment is used to hedge your portfolio and limit the amount of loss in case of market changes against your position. In the case of Crypto Options, you can retain your position while making profits if the price goes up or down. The trading process is based on market volatility, with higher volatility typically implying higher price for Crypto Options.

Bybit

Bybit is a new cryptocurrency options trading platform. To be eligible to use Bybit, you must first go through the Know Your Customer (KYC) process. Bybit is also blocked in the United States, mainland China, Singapore, Quebec, Canada, and North Korea. There are a few features you can use, though. One of them is the option to set a target price or percentages for your orders. If you do not wish to use a percentage, you can manually specify a target price.

Bybit will initially support short-dated and perpetual options for USDC. Bybit is a stablecoin issued by Circle and has made a commitment to become a leader in the growing crypto derivatives market. To that end, this new feature is a major step in the company’s journey to become a fully integrated powerhouse. Bybit has been steadily building its services, and plans to launch a cryptocurrency options trading platform soon.

Deribit

Deribit is a well-known cryptocurrency exchange that specializes in crypto options trading. The company uses cold storage for all user funds and two-factor authentication to protect your funds from hacking. Users can use their support ticket system or email to reach customer service representatives. Phone support is not available. However, Deribit is dedicated to customer satisfaction. During a recent flash crash, Deribit compensated users with $1.3 million and fixed a bug in its BTC index calculation that led to a temporary drop in the price of BTC.

The minimum deposit for Deribit is 0.001 BTC and the maximum deposit is $10 million USD. Futures contracts can only be bought and sold once, while options contracts can be purchased and sold whenever they are at a favorable price. There are no deposit limits for options contracts on Deribit, although larger transactions may be delayed depending on the volume of the network. For those who are not familiar with the concept of options trading, this article will provide an overview of Deribit and the various methods available to traders.

Koinly

If you’re new to crypto, you may be wondering what the Koinly ecosystem is all about. Basically, it’s a cryptocurrency ecosystem in which all transactions are stored on one account or crypto wallet. Koinly uses an API to connect with various services and automatically import transaction history, making it easy for users to keep up with their investment. The Koinly platform also lets users create their own wallets and track mining activity.

With its double-entry ledger system, Koinly makes it easy to track transactions. Users can also generate documents and track capital gains. Koinly supports tax reporting for over twenty countries. Users can export their data from Koinly into their preferred tax software. The platform offers a wide variety of tools to identify issues and improve performance. For example, it uses an AI to highlight missing transactions. The platform also supports a number of popular crypto services.

OKX

You can buy and sell cryptocurrency options through the OKX exchange. Buying options gives you limited downside risk, while selling them gives you unlimited upside potential. Options are sold with a PUT or CALL option. You must pay a premium to the counterparty to hold a PUT or CALL option. The fees for buying and selling options vary depending on the trading pair you are trading. You can learn more about the fee structure here.

The leverage level for OKX is 50X, which means your position will move $50 for every $1 move in the underlying asset. OKX offers single-currency margin, multi-currency margin, and portfolio margin modes, with the latter suited for institutional or high-net-worth clients. You can adjust your leverage level when signing up and in the platform. You can choose the right leverage level for your needs, as well as the amount of capital you need to place a trade.

MOVE

MOVE is an exchange-traded digital currency that is growing in popularity. It is currently trading on a number of exchanges, including Delta and FTX. This type of trading allows users to invest in the price of MOVE, a cryptocurrency, in advance of its price change. The MOVE contract is worth the same amount as the underlying index, so if BTC moves from 9400 to 9650 during the expiration period, MOVE would go up by the same amount.

The price of MOVE is determined by the implied volatility of the underlying. The daily move contract has a greater likelihood of increasing or decreasing in value. Similarly, profiting from shorting MOVE is the most straightforward method. As an example, BTC fluctuates between $8000 and $7400 over the course of the day. If the underlying price increases significantly, a trader may decide to short MOVE in anticipation of its return to $8000. This strategy is known as a volatility callback.