Cryptocurrency Options

September 7, 2021

Make buying, selling, and trading cryptocurrency options easy with Rubix’s industry-leading cryptocurrency exchange platform. Get started by creating your own virtual Rubix Swap Wallet.

What are Cryptocurrency Options?

Cryptocurrency options are a form of cryptocurrency derivatives that get their value from a type of traditional cryptocurrency (such as Bitcoin). Essentially, they are contracts that grant purchasers the right to either buy or sell an underlying asset at a specified price and by a specified time. The amount you pay for an option is the amount you can later buy or sell it for (minus a “premium” that fluctuates based on the current market). They can be broken down into two categories:

  • Call options: The right to buy.
  • Put options: The right to sell.

How do Crypto Options Work?

Crypto options work by giving owners the option to buy or sell an asset at a certain amount. For instance, if you purchase a call option for Bitcoin at $5,000, you now have the ability to buy one Bitcoin for $5,000. Conversely, if you purchase a put option for Bitcoin at $5,000, you can sell one Bitcoin at that price. The time frame in which you need to complete the purchase or sale depends on the crypto option style you choose:

  • American: Lets you buy or sell any time before the contract expires.
  • European: You can only buy or sell at the point of expiry.

Since you are not obligated to buy or sell your assets, you can choose to hold on to them instead. However, if you do not buy or sell within the expiration date, you will lose the premium you paid.

How do you Trade Crypto Options?

To exchange crypto options, two or more parties will mutually agree upon a contract ahead of time. This contract will outline the price of the option, as well as the deadline for buying and selling.

What is the Best Platform to Trade Cryptocurrencies?

Because cryptocurrencies can reach high values, it’s important to only buy, sell and exchange them through a reliable, secure site. Rubix is an online cryptocurrency exchange platform that employs encryption and a multi-security system to preserve the assets of users. Conveniently accessible across mobile devices or web browsers, Rubix connects individuals to a network of fellow crypto-owners to engage in peer-to-peer transactions.

Crypto Options FAQs

Are there options on Cryptocurrency?

Options are available for a wide range of cryptocurrencies, including Bitcoin, Ethereum and ZCash.

How do I Buy Bitcoin Options?

You can obtain Bitcoin options conveniently online through a reliable cryptocurrency platform such as Rubix.

Where can I Buy Crypto Options?

In addition to Bitcoin options, you can purchase different crypto options and other derivatives directly online through Rubix.

What is Better, Cryptocurrency Options or Futures?

Cryptocurrency futures are agreements that mandate both parties to buy and sell assets for a specified amount and at a specified date. There is no set answer for which cryptocurrency derivative is better — it depends on your preferences. Because options do not come with any obligations, they tend to be less risky. However, futures can be more cost-effective.

What are Crypto Binary Options?

Crypto binary options are a type of trading in which you predict whether the value of a cryptocurrency will increase or decrease within a set time frame. For instance, if you think that the value of Bitcoin will be above X amount in one week, you can buy a call option (if you think it will be below X amount, you can buy a put option). If you are correct, you will receive the option’s full payout; if you are wrong, you lose your investment.

What are Crypto Call Options?

Crypto call options refer to the right to buy the asset. The price at which you can buy the asset in the future is known as the “strike price.” If you wish to buy a call option with a strike price that is lower than the current value of the cryptocurrency, you will have to pay more for the contract.

Get Started

Through its secure platform and efficient transaction methods, Rubix is establishing itself as a big name in the crypto game. Get started with crypto option exchanges by signing up today.