BitOffer English
Published in

BitOffer English

BitOffer Institute: Which Owns the Higher Payoff when Bitcoin Plunged, Options or Futures?

After the plunged last month, some investors got rich while most other investors lost unbelievable amounts. As the Bitcoin price dropped by $5,000 within a week, firstly, spot trading traders experienced huge losses on their account. Futures traders could choose to short or long bitcoins, but even though, they also had to bear risks of being liquidated. One thing you might never notice that Bitcoin Options traders are the winners when the Bitcoin price plunged this time due to the feature of Bitcoin Options that allows investors to earn high profits with a low-budget.

The market plunged and fluctuated sharply, the payoff of Options trading must be the highest one. Taking the plunge which reached $5,000 last month as the example, the 1-hour contracts of Bitcoin Options once made the investors’ ROI be up to 100 times. It is obvious that Bitcoin Options is much more attractive. In the lottery, the players are able to win a 5000 times payoff by chance. When the thing comes to the stock market and the futures market, it is never possible for investors to make it. However, options trading allows investors to make the lottery dream happen in the cryptocurrency market.

Options trading, a high-level financial derivatives, is considered as a popular and renowned hedge tool by its several significant features: 1. It allows investors to earn high profits with a low-budget. 2. Unlimited profit but limited loss. 3. It has natural leverage that can be up to 2,000 times. 3. It requires 0 margins, 0 fees without any liquidation and exercise.

100X Leveraged Profits in Bitcoin Options within 1 hour:

On March 12th, the Bitcoin price dropped from $7,369 to $5,555. And it once decreased by $1,813 within an hour. In this case, if you bought a 1-hour put options contract on BitOffer with a budget of $20, your profit when the contract settled would be $1,813. The ROI already reached 90 times based on the $20 budget.

Which Owns the Higher Payoff when Bitcoin Plunged, Options or Futures?

Options trading and futures trading both allow investors to earn high profits with a low-budget, and they are also both normal derivatives we always touch in our daily life. When the market is volatile, such as the Bitcoin price plunged by $1,800, which one can bring a higher profit to investors?

Supposed that we opened positions at the level of $7,369, and the Bitcoin price dropped to $5,555, the change reached -25%. If you opened short Bitcoin 100X, your largest profit would only be 25 times. Compared with the 90 times payoff options contract, it was only a piece of cake.

In addition, with the leverages up to 100X, even a 1% inverse movement would cause investors to be liquidated. However, Options trading will never push investors to be liquidated: even during the period, the market volatiles, investors can still directly earn the price spread when the contract settled. We can obviously see that Options trading is less risky but still much more profitable than the futures trading.

What is Bitcoin Options?

Bitcoin Options is a prediction of the movement of Bitcoins in the future. Essentially, it operates like the spot trading, but it allows the investors to buy call or put: Call when the investors expect the market to be bullish, Put when the investors expect the market to be bearish. Its profit formula is the same as that of the spot trading: Within the Options contract period, the investors would earn the price spread if the investors choose the correct direction. In short, BitOffer Bitcoin Options allows the investors to use a small budget to bet the change of the Bitcoins in the future and earn a considerable profit.

How do I trade Bitcoin Options?

For example, the Bitcoin price now is $10,000, and you hold the view that the Bitcoin price will rise in an hour, then you buy a 1-hour call options contract with $20. After then, the Bitcoin price rises by $1,000 in an hour, you will earn $1,000 as profit when the contract settled, which means that you will earn a 50 times payoff as a return.

If the Bitcoin price drops in an hour, you would only lose the premium $20 that you buy the options contract. It is obvious that Bitcoin Options owns the advantage of “Unlimited profit buy limited loss”. Compared with futures trading, if you predict the wrong direction of the Bitcoin market and do not stop loss in time, it might cause your positions to be liquidated and lose money. Thus, Bitcoin Options fits almost all investors.



This is a blog dedicated to inform BitOffer English speaker users about the latest news and updates of our project. BitOffer is an STO exchange which allows millions of dollars in securities to migrate to the blockchain.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store