What Are Bitcoin Options?

An option is a financial derivative that provides the holder with the right, not the obligation, to buy/sell an asset at a specific price on a pre-defined date in the future.

Options are common in currency and commodity markets, but they can be purchased on other financial assets such as stocks, bonds, indices, and recently, bitcoin.

Bitcoin options allow you to place a leveraged bet on the price or volatility of bitcoin. Moreover, they allow you to hedge your digital asset portfolio.

How to Trade Bitcoin Options

For traders, there are platforms where you can sign up and deposit funds to begin trading with relative ease.

Why Trade Bitcoin Options?

For traders, bitcoin options can be an excellent tool for betting on the price of BTC using leverage. An options trader may only need to spend a few hundred dollars on a bitcoin call option with a 3-month maturity to see returns of over 100%. But bear in mind, this can all be lost in moments, so it’s not for the faint of heart.

Note: Unless you are comfortable with terms like calls, puts, delta, and implied volatility, it is better to gain a thorough understanding of financial options before investing in this type of bitcoin derivative.

If you want to learn about bitcoin investment opportunities,  join the bitcoin revolution today!