Find the best crypto option trading platforms here.
- List of the best crypto option trading sites
- What are crypto options?
- Summary of each crypto options trading platform
- Answers to common questions and pros and cons with crypto option trading
Best Crypto Option Trading Platforms
We have listed the best crypto option trading sites in the list below.
Deribit is considered the number one crypto trading exchange when it comes to options since it holds the majority of the crypto options trading volume.
Also, Delta Exchange is a crypto trading site focusing a lot on crypto options.
What are crypto options?
Crypto option is a crypto derivative trading instrument that allows you to buy or sell cryptocurrencies at a specific price within a particular date.
Crypto option trading also gives the buyers or sellers the flexibility to not buy or sell the cryptocurrency at the specified price or date.
You pay for the “option to buy or sell a certain amount of the cryptocurrency at a specific price, on a specific date, in the future.”
What is crypto options vs crypto futures?
A futures contract obligates the buyer to purchase a specific asset and the seller to sell and deliver that asset at a specific future date.
What is crypto option premium?
When you pay for the option to buy or sell a cryptocurrency on a settlement date in the future, you have to pay a premium to acquire the option.
Why should I trade crypto options?
The best property of crypto options is how they give a potential leverage exposure with a limited downside. The limited downside comes from the fact that you “only” pay a premium to have the option to buy or sell the underlying crypto in the future.
Crypto Option Trading with Deribit
Deribit has the most crypto trading volume when it comes to crypto options.
Deribit claims to dominate the BTC, ETH, and SOL crypto options trading, according to the screenshot below. However, Deribit crypto options are European-style and can’t be executed before expiration as opposed to American-style options.
Crypto options trading for Bitcoin BTC goes up to 10x leverage.
For all crypto option trades, there is a maker-taker fee model.
In addition, Deribit also charges a delivery fee for the order execution at the time of expiry.
Deribit claims to dominate the BTC, ETH, and SOL crypto options trading according to the screenshot above.
Deribit Crypto Options Trading Fees
- .04% of underlying or 0.0004 BTC/option contract
- Fees can also never rise above 12.5% of the price of the option.
Options liquidations trades
- 0.19% of underlying or 0.0019BTC/options contract
Where can I trade crypto options with long expiration date?
Deribit crypto exchange offers the longest crypto options contracts with an expiration date of up to 12 months.
What crypto options are listed on Deribit?
Deribit offers crypto options trading for Bitcoin BTC, Ethereum ETH, and Solana SOL. For BTC and ETH, the most extended expiration date is the last day in the 4th quarter from the current date, which is the longest you can find.
Crypto Option Trading with Bybit
Bybit offers crypto options trading European contracts for Bitcoin using USDC as collateral.
Bybit only offers crypto options trading for Bitcoin; the most extended settle times are about 120 days.
Bybit Crypto Options Trading Fees
In the table below, you find the Bybit maker and taker fees for crypto option trading.
What crypto options are listed on Bybit?
Bybit only lists Bitcoin BTC options with the most extended expiration date and the last date in the next quarter.
Crypto Option Trading with Binance
Buy and sell European-style Vanilla options at Binance. The Vanilla European-style crypto options allow users to buy Bitcoin at an agreed-upon price upon the expiry of the contract, then trade it for other cryptocurrencies. Read our step-by-step guide on how to purchase crypto options on Binance.
Crypto Option Trading with OKX
OKX crypto exchange offers crypto options trading for Bitcoin (BTC) and Ether (ETH).
OKX crypto options are European-style options.
OKX Crypto Options Trading Fees
Option exercise fee: The exercise fee for options is 0.02% for all users regardless of tiers. This fee of a single contract will not exceed 12.5% of the exercise profit. 1-day and 2-day options do not have the exercise fee. The options that haven’t been exercised are fee-free too.
Close a position and forced liquidation fees – The option fee of closing a position fee is calculated according to the maker/taker fee of your current tier. The forced liquidation fee is based on the Tier 1 taker fee.
What crypto options are listed on OKX?
OKX lists Bitcoin BTC, Ethereum ETH, and Solana SOL crypto options. OKX has long expiration dates for BTC and ETH options while they have short dates for the SOL options.
Crypto Option Trading with Delta Exchange
Delta Exchange is a crypto trading exchange focusing on crypto options trading. Here, you find crypto options for BTC, ETH, XRP, SOL, AVAX, MATIC, BNB, and LINK.
What crypto options are listed on Delta Exchange?
Delta Exchange lists the most variety of crypto options among all exchanges. Here, you find options for Bitcoin, Ethereum, Ripple, Solana, Avalanche, Polygon, Binance Coin, and Chainlink.
Different Crypto Trading Options
There are two different types of contracts in options trading. Either you pay for the right to buy a cryptocurrency, or you pay for the right to sell a cryptocurrency. These two options are called put and call.
Give the holder the right to buy the underlying asset at a set price (the strike price) on a set date (the expiry date).
Give the holder the right to sell the underlying asset a set price (the strike price) on a set date (the expiry date).
Crypto Option Greeks
Crypt option traders often refer to the “Greek” expressions which are delta, gamma, vega, and theta.
They all provide different ways to measure the sensitivity of an option’s price to quantifiable factors.
- Delta – is a measurement of the connection between an option’s premium to a change in the price of the underlying asset
- Theta – gives an indication of how the option price will change over time
- Vega – measures the sensitivity of the price of an option to changes in volatility.
- Gamma – measures the rate of change in the delta for each one-point increase in the underlying asset.
American Style VS European Style crypto options
Crypto Option Trading Fees
There are different trading fees associated with crypto option trading
- Trading fees
- Delivery fees
Crypto Option Trading fees
A crypto options trading fee occurs in transactions when opening or closing a position.
The transaction fee is often based on the token and the order type (Maker or Taker).
Usually, there is an upper limit for the transaction fee of each transaction, 12.5% of the premium paid or received is a normal maximum trading fee.
Crypto Option Delivery Fees
There are two different outfalls on the delivery date (options expiration date)
- Out-of-the-money and at-the-money options will automatically become invalid at the expiry and the seller’s performance margin will be released.
- In-the-money options will be automatically exercised by the system at the delivery. In-the-money options buyer will receive delivery incomes and pay delivery fees, while the seller of in-the-money options will pay delivery profits to the buyer but will be free from paying delivery fees.
Crypto Option Liquidation fees
If the price goes against your crypto option, your positions can be liquidated. Shorted options and long options with portfolio margin mode can be liquidated. Standard long options can not be liquidated since these give you the option to buy the underlying asset at a certain price.
Cryptocurrency Options Trading VS Futures Trading
However, there are specific essential differences to understand before entering the markets.
The significant difference between crypto options trading and crypto futures trading is that the options are “optional” while the futures contracts are “obligatory.”
For example, if you have bought a Bitcoin options contract, you also have paid a premium to be able to buy or sell Bitcoin at a specific price on a certain date.
If the price on that date is not favorable for you, you have the option to don’t take any action. After that, however, the option’s value will fall to zero.
However, in the case of a futures contract, you have signed to buy or sell the cryptocurrency at a specific price at the settlement date.
This significant difference makes options trading relatively low risk compared to futures. The maximum risk for a crypto options contract buyer is the premium, whereas the risk in a futures contract has no such limit.
Pros and Cons Crypto Option Trading
- Lower financial commitment: Crypto options provide leverage and users can get a higher exposure by using fewer funds compared to buying it on the spot market.
- Less downside for buyers: Buyers only put the premium at risk since there is no position margin cost.
- Complicated trading instrument
- Loss potential is high for sellers