Can I Trade Crypto Options?

Yes, you can trade crypto options. A crypto option is a financial derivative that gives the holder the right, but not the obligation, to buy or sell a cryptocurrency at a predetermined price on or before a specific date. Crypto options can be traded on a number of online platforms, including exchanges and brokerages that offer options trading.

There are two main types of crypto options: call options and put options. A call option gives the holder the right to buy a cryptocurrency at a specific price on or before a specific date, while a put option gives the holder the right to sell a cryptocurrency at a specific price on or before a specific date. The price at which the holder has the right to buy or sell the cryptocurrency is known as the strike price.


Best Crypto Options Trading Platforms

To help traders do more due-diligence on digital asset options trading platforms, we have put together a list of the top 5 for you to compare. Our ranking methodology considers a wide range of factors including platform security, options & derivatives variety, liquidity, fees and the overall user experience.

Here are our Top 5 Crypto Options Exchanges for 2023:

  1. Bybit Options - Best Overall Options Platform
  2. Binance Options - Best Alternative for Options & Futures
  3. Robinhood Crypto - Best for US-based Crypto Options
  4. Deribit - Best for non-US Intitutional Investors
  5. OKX.com - Good Alternative for Crypto Options

1. Bybit Options

Bybit is a leading cryptocurrency derivatives trading platform and offers options contracts on all major cryptocurrencies including Bitcoin, Ethereum and Solana. It is renowned for its high liquidity, low fees and robust security protocols. The platform also provides tools for advanced traders such as margin trading & stop-loss order features.

The options contracts on Bybit are collateralized with USDC - which means you will need to deposit or buy USDC on the platform to trade contracts.

Bybit Options Trading
Bybit Options Trading.

2. Binance Options

Binance is one of the largest cryptocurrency exchanges in the world and offers options trading on Bitcoin, Ethereum and BNB Coin only. The platform also supports futures & perpetual contracts, making it a great choice for traders who want to diversify their portfolios with more advanced financial instruments.

Binance also offers some of the lowest fees for option trades, making it one of the most cost-effective options. Their platform is collateralized with USDT as opposed to USDC, which makes the exchange slightly less safe to use than Bybit.

Binance Options
Binance Options.


3. Robinhood Crypto Options

Robinhood is a popular stock and cryptocurrency trading platform that allows users to buy and sell US stocks, ETFs and cryptocurrencies with no commission fees. The app has also recently launched options trading on some digital assets, making it a great choice for US-based traders who want to get involved in crypto options.

The platform is incredibly easy to use and provides tools for both beginner and advanced crypto traders alike. However, the platform does not offer leverage or more advanced features such as margin trading which could limit the appeal of Robinhood for more experienced traders.

Robinhood Crypto Options
Robinhood Crypto.


4. Deribit Options

Deribit is an institutional-grade crypto options platform that offers a wide selection of digital assets with high liquidity and low fees. The platform is primarily aimed at non-US investors and provides a range of sophisticated tools such as margin trading, futures & perpetual contracts in addition to options.

Deribit also has a wide range of collateralization options including Bitcoin and Ethereum, making it one of the safest crypto options platforms to use.

Deribit Options
Deribit Options.

5. OKX Options

OKX is a relatively new cryptocurrency derivatives exchange that offers crypto futures & perpetual contracts in addition to options. The platform is becoming increasingly popular due to its high liquidity, low fees and easy-to-use trading interface.

The platform is currently only available to investors outside of the US, however they plan to expand into the American market in the near future. OKX also offers traders a wide range of collateralization options including Bitcoin and Ethereum.

OKX.com
OKX.com.

How many Crypto Options can I trade?

The options and derivatives market for digital assets is still nascent, which means you can generally only trade options on large caps like Bitcoin, Ethereum, Solana, Avalanche and others.  Other smaller, less liquid assets generally won't have any options markets available.

Are Crypto Options safe?

Like any financial product, trading crypto options carries some level of risk. The value of options can fluctuate and you may lose money on your trades if the market moves against you. It's important to carefully consider the risks and potential rewards of trading crypto options before making any investment decisions.

There are also risks associated with the platform on which you trade crypto options. It's important to choose a reputable and well-regulated platform that has a track record of security and reliability. You should also make sure that the platform has measures in place to protect your funds and personal information.

In addition to the risks inherent in trading options, it's also important to understand the terms and conditions of the option contract and the underlying cryptocurrency. You should carefully read and understand the terms of the option contract before you trade. It's always a good idea to do your own research and consult with a financial advisor before making any investment decisions.

Final Thoughts

Crypto options are still relatively new, but they offer traders a powerful and cost-effective way to gain exposure to the cryptocurrency market. As the market matures and more exchanges list options, it’s likely that we will see increased interest in this type of trading.

It's important to keep in mind the risks associated with trading crypto options, as well as the risks associated with a particular trading platform. With due diligence and careful research, you can use crypto options to your advantage in order to maximize your returns while minimizing risk.