New High on Bitcoin Options Volume, BitOffer Took the Lead

Recently, a data, which shows that the Bitcoin Options volume in the recent month created a new high in almost reached $200,000,000, caught the attractions from the options market. Before that, since the volume of Bitcoin Options climbed to about $155,000,000, the volume kept decreasing and once dropped to the level below $50,000,000. However, the recent performance of the Bitcoin Options surprised the investors as it surged to nearly $200,000,000. The Bitcoin price experienced significant fluctuations and resulted in more Bitcoin Options transactions happened due to the reason that the potential payoff of options trading is much higher than that of futures trading, while options trading brings a lower risk.

BitOffer, a cryptocurrency derivatives exchange which based its headquarter in Singapore, occupied 60% of the Bitcoin Options market shares, and ranked the 1st with the volume that was higher than the sum of that of OKEx, Binance JEX, BAKKT, and CME. BitOffer Bitcoin Options has become the most popular Bitcoin Options since it first launched with its features of 0 fees, 0 margins, and no exercise. To normal investors, the complicated operations of the Bitcoin Options on OKEx, JEX, etc. do harmful to the users’ experience since they are all defined as the European options. In addition, the Bitcoin Options volume of BAKKT at the end of January was almost 0.

In the past months, cryptocurrency investors, traders, and miners started having more interest in Bitcoin Options. As the cryptocurrency industry developed, more and more people knew more about Bitcoin Options and already had their first try on it. What should be noticed is that recently, investors’ interests in Bitcoin Options and the implied volatility surged at the same time. As the rate has reached 65%, it statistically reflected that traders predicted that another fluctuation would happen in the near future.

With the effects of coronavirus and oil war, the worldwide financial market has been through sharp fluctuations while the Bitcoin price plunged by $5,000. In this extreme case, many smart investors chose to trade Bitcoin Options than Bitcoin Futures. They both have the same feature that allows investors to earn high profits with a low-budget, but the leverages of Bitcoin Options is much higher. At the same time, Bitcoin Options never pushes investors to face the risk of being liquidated. Once investors predict the correct direction, the payoff would be able to be unlimited.

For example, if you bought a 7-days put options on BitOffer last week when the Bitcoin price plunged, your payoff would be $5,000. If you bought 10, the payoff would be $50,000. Thus, it is obvious that the payoff that Bitcoin Options can bring is much more considerable. As for now, a huge increasing space still exists in the Bitcoin Options market. We deeply believe that with the innovations and diversity of BitOffer Bitcoin Options, BitOffer will become the weathervane on the Bitcoin Options market.

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.

Click here to start knowing BitOffer Bitcoin Options: https://www.bitoffer.com/en/option