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Can you Buy Options on Cryptocurrency? A Complete Guide

by William Kane
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Can you Buy Options on Cryptocurrency? A Complete Guide

Bitcoin options are economic offshoots that enable investors to infer the price of the digital currency. They assume leverage or hedge their digital asset portfolios and make a judgment about buying the options. Can you buy options on cryptocurrency? Yes, options are available on both traditional derivative trades and crypto trading outlets. 

Among advanced crypto dealers, Bitcoin options have become prominent. Right trading hence, ample liquidity, high security, user experience, currency compatibility, range of options, derivatives, and low risks must be weighed carefully before buying crypto options. 

In this article, the novices of crypto will have their every question about can you buy options on cryptocurrency

Best Crypto Exchange Options

Best Crypto Exchange Options

The top choices by the crypto analysts for digital assets trading platforms are described below;


Bybit Options

Bybit is most recognized for options cryptocurrency trading. If someone is researching, can you buy options on cryptocurrency? Then, one can trust Bybit’s options as it provides contracts on Ethereum, Bitcoin, and Solana. 

Benefits of Bybit 

The options contracts offered by this platform have various benefits;

  • Contracts collateralized with USDC
  • One can buy or deposit contracts USDC within the outlet, without owing underlying crypto assets
  • Competitive and lowest trading fees
  • Superior liquidity
  • High-end security with minimal slippage 
  • Reduction of margin regulations on hedged positions 
  • Support of Portfolio margin to enhance efficiency
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Deribit is the second-best crypto options and futures exchange firm. Institutional and professional crypto users use Deribit to make various transactions. Presently, Deribit is running most of the market as it dominates 90% over open interests in Bitcoin and Ethereum options exchanges. Daily volumes of depositing and purchasing options in this firm amount to $500 million. 

Features of Derebit 

Here are some of the features that Derebit offers to its users;

  • Extensive options for trading futures or options
  • High leverage
  • First-class security and risk management
  • Insurance fund protection to guard the users against bankruptcy, and mitigated debt risks for victims
  • Ensures full payments to victors 
  • Advanced trading tools
  • Simple and user-friendly interface
  • Dedicated customers support

Cons of Derebit 

  • Not available to the U.S. residents 
  • Accounts can only be financed by BTC 
  • May be confusing to the novices 

Binance Options 

Binance Options Can you Buy Options on Cryptocurrency

Finance also stands in the top 5 options for exchanging crypto firms. However, the trading options here are limited to a few times including BNB, Ethereum, and Bitcoin coins. This company’s options are collateralized with USDT. Although USDT isn’t as secure as Bybit, yet, it provides sufficient security.  

Benefits of Binance 

Here are some features of Binance that come in handy while trading;

  • Broad support for perpetual contracts and futures trading
  • Diversify exchange portfolios
  • Stablecoin margin options which are finalized in USDT and USDC selections 
  • Lowest transaction fees (0.02%) and exercise fees (0.015%); cost-effective 
  • The lower capital requirement makes it best for leveraged trading through Binance
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Robinhood Options 

Robinhood is the best option for United States-based traders and has commission-free investing tools to change the future of its users. Options transactions are usually tricky and can make one life their whole investments in a moment. For this purpose, Robinhood provides a simple interface, advanced features, and user-friendly options making it a top choice for depositing options. 

Benefits of Robinhood

Robinhood provides the following features;

  • User-friendly interface
  • Suitable for both novices and experts of the crypt of 
  • Simplified and cost-effective 

Shortcomings of Robinhood

  • It doesn’t support leverage and margin trading 

OKX Options

OKX is the second top crypto exchange which is trusted by millions of users worldwide. This firm has 50 million people under its umbrella and is trying to expand its roots in the United States. 

Benefits of OKX 

OKX provides the following features for crypto users;

  • High liquidity
  • Cross effective fees
  • Intuitive interface
  • Variety of collateralizing options for Ethereum and Bitcoin 
  • Portfolio diversification 
  • Risk disclaimers

Shortcomings of  OKX

  • Catering only non-U.S. investors 

The reason behind the can you buy cryptocurrency options is evident through various crypto exchange platforms.

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How to Buy and Sell Bitcoin Futures or Options?

Options are financial derivative contracts that let the user buy or sell an asset whose amount and selling date are predetermined. However, the crypto user isn’t obligated to sell his assets at the predetermined rate. Bitcoin and Ethereum options are available on a handful of traditional securities exchanges and crypto exchange platforms. 

Follow the following steps to trade options on Bitcoin;

  • Register an account for free on Bitcoin. 
  • Activate the account and choose a contact you wanna trade with.
  • Adjust the position mode, select hedge mode, and set the leverage multiplier on your BTC account. 
  • Transfer the assets into the future account; If one wants to transfer to spot, use Binance. If one wants to transfer to a coin margin account, then use trade coin margin.
  • Open a position while utilizing Binance which supports various order types like limit, market, and stop limit.
  • Monitor your position through the bottom of the screen. All position info is provided at the bottom. 
  • Close your position through one-way mode by selecting the limit close or market-close option.
  • Select the close tab under the hedging mode to end this process. 

Is Crypto Options Trading Legal?

After having an answer to whether can you buy options on cryptocurrency, one also should know if it’s legal or not. Crypto trading legitimacy depends upon the country in which the trading takes place. Various countries support and regulate digital trading. However, various other countries ban crypto trading. Hence, one needs to be familiar with local laws 

before delving into virtual currencies. 

Is Crypto Options Trading Safe?

Crypto options trading can be valuable, but it’s not without stakes. Safety primarily depends on your proficiency in regulating these stakes effectively. If someone is new to trading or unsure about the complexities of options, it’s essential to nurture yourself thoroughly and possibly practice with a demo account before taking a chance on real capital. 

Moreover, consider consulting the trading plans with a financial counselor to make informed conclusions based on your financial objectives and risk tolerance.

If there is any confusion about the article, can you buy cryptocurrency options, and then inquire about them in the comments.?

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