For years, cryptocurrency has remained a buzzword among novices and seasoned investors alike. In particular, options have emerged as one of the most favored instruments. As a form of derivative contract, options give traders the right to buy or sell their underlying crypto at a predetermined time and price. This helps investors limit their risk exposure, avoid significant financial commitments and ensure they can still sell their assets at an acceptable price even when the market moves in the opposite direction to their trade. By serving as a good hedging strategy, options may appeal to you, especially against the backdrop of uncertain market conditions. However, with an overwhelming number of crypto options trading platforms available, the question thus becomes: how do you choose the best platform to ensure smooth trade execution and maximum gains? Whether you are a new trader eager to enter the crypto world through options or a veteran seeking a platform that enables you to reap the highest returns, this guide will help you narrow your choices.
1. Crypto Trading Platform that Achieves More with Less
Among the numerous attractive aspects of crypto trading, a top motive is its returns. Echoing this is the findings in the CNBC/Momentive Invest in You survey, which showed that the potential for high growth in a short period is one of the top reasons investors trade crypto. This is where leverage comes in as a powerful tool that you can take advantage of to multiply your earnings. By having leverage, you can trade crypto with more capital than you have, enabling you to increase your potential returns when the trade works in your favor. This also prevents you from locking up a substantial amount of capital on a particular instrument. With this advantage, you can utilize your funds more strategically to improve your investment outcomes and diversify risk, which is especially vital given the volatile nature of the crypto market.
2. Low Crypto Trading Fees
Fees are an intrinsic part of any trading process, and when it comes to options trading, common fees include the maker and taker fees. A maker fee is charged when you place an order that is not instantly matched with a buyer’s or seller’s order. Meanwhile, a taker fee applies when your order is executed immediately. While the respective fee percentages often appear negligible, they can add up, especially when you execute many trades. As such, an ideal crypto options trading platform will typically adopt a tiered fee structure that helps you reduce transaction costs by charging based on trade volume.
3. Reputable and Secure Crypto Trading Platform
According to reports, an astounding US$1.9 billion worth of crypto was lost to hacking within the first seven months of 2022 alone. This is a 60% spike compared to 2021, and these types of incidents are unlikely to cease anytime soon. That is why the reputation of a crypto trading platform is a crucial factor to consider when shortlisting your options. With an established platform, you can always be assured that the management team’s experience enables them to implement robust measures that safeguard your assets and safety nets that mitigate risks.
4. User-Friendly Platform
With the amount of technical jargon that you need to digest for crypto trading, the last thing you want is to be further confused by a platform with an interface that is cryptic at best. Thus, the top crypto trading marketplaces will sport intuitive designs, allowing you to navigate their platforms with ease and minimizing costly trading mistakes.
Maximize Crypto Trading Profits with BIT
At BIT, we endeavor to support you every step of the way in your crypto trading journey by offering a full-suite crypto trading platform. As the second largest crypto exchange in the Bitcoin and Ethereum options market, we afford traders access to diverse offerings to meet all their portfolio needs and high liquidity. Complementing this is our unified margin system that allows you to trade based on the total US dollar holdings for all instruments. With this unified account arrangement, you can buy or sell crypto more easily and unlock the highest possible level of leverage. As a bonus, BIT operates on a tiered fee structure, with maker and taker fees lower than the industry average, reducing transaction costs that eat into your final profits.
Recognizing that security is paramount, we also leverage institutional-grade security and partner with renowned security custodian Cactus Custody to regulate the entire platform. Through this, you can be sure that any illegal activities are always promptly addressed. Nonetheless, navigating the world of crypto requires more than a comprehensive trading platform, and BIT’s unique background will effectively fill this gap. A spinoff of Asia’s fastest-growing digital assets financial services platform Matrixport, BIT is helmed by industry veterans, including blockchain industry pioneer Jihan Wu. With our rich expertise and wealth of supportive resources, we are confident in adding value to your experience and providing you with all the help you need to stay ahead in the crypto world. Get started with BIT today and take your crypto trading experience to the next level.
This article should not be taken as financial or investment advice. Making an investment or financial decision is a choice. Do your research!
BIT is a full-featured cryptocurrency exchange that is designed for use by professionals. It provides services such as the execution of trading strategies, price discovery, and liquidity provision. BIT is always working to encourage the creation of innovative new financial products, improve the trading tools available to users, and offer a wide variety of tokens. Trade with confidence knowing that the platform is built with institutional-grade security and risk management measures in place. Sign up for BIT and switch on your future. Sign up on BIT, and switch on your future.