Dreaming of effortless trading success? Our detailed breakdown of the best crypto options trading platforms in 2024 will turn your dreams into reality.
Options trading is a popular type of investing strategy that investors have been using in traditional financial markets for decades. An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price and time. Recently, crypto options trading has also become popular for traders looking to diversify their cryptocurrency portfolios. Many crypto options trading platforms have emerged now. In the crypto market, cryptocurrency options trading allows traders to speculate on the price movements of coins like Bitcoin and Ethereum while limiting the downside risk.
But how do crypto options work, and which are the best crypto option trading platforms to trade them on? This complete guide explains everything you need to know about trading options on Bitcoin, Ethereum and other digital assets.
List Of Top Crypto Options Trading Platforms
Here is the list of top options trading platforms for 2024, which you can choose to trade and earn.
Exchange | Options Available | Trading Fee | Collateral |
BTC and ETH | Maker Fees and Taker Fees 0.02% | USDC | |
BTC, ETH, BNB, XRP and DOGE | Maker Fees 0.03% and Taker Fees 0.03% | USDT | |
BTC & ETH | Maker Fees 0.02% and Taker Fees 0.03% | USDC | |
BTC | Maker Fees 0.04% and Taker Fees 0.04% | USDT | |
BTC and ETH | Maker Fees 0.03% and Taker Fees 0.03% | USDT | |
BTC and ETH | Maker Fees 0.03% and Taker Fees 0.03% | USDC, BTC and ETH |
6 Best Crypto Options Trading Platforms in 2024
As we step into 2024, knowing the best options trading platforms are paramount. Not only will they up your crypto trading game, but also give you the opportunity to crypto earn rewards. Here is the list of our well-reviewed and well-performing Options trading platforms for 2024.
These are the best crypto options trading platforms available right now that you can choose from to start your options trading.
1. Bybit: Powerful BTC and ETH Options Trading
Bybit now provides seamless access to crypto options contracts from its unified trading account. The dedicated Options Board offers a visually intuitive way to manage options positions, analyse profit and loss, adjust position size and implement risk management.
Bybit aims to supercharge options trading by combining 100x leverage with an ultra-low latency infrastructure. It allows you to implement options strategies ranging from long or short straddles, strangles, spreads, butterflies, and more using the Strategy Lab. This makes it suitable for novice and advanced derivatives traders.
Supported Assets: Bitcoin and Ethereum
Leverage: Up to 100x
Fees: Starts at 0.02% for both makers and takers. The fee structure offers lower rates for higher trading volumes.
Pros of ByBit:
- A unified account supports easy switching between spots, options and futures.
- Bybit offers automated trading bots that can follow strategies based on given parameters.
- Bybit lets you trade with up to 100x leverage on crypto.
- Advanced trading features like Options Strategy Lab.
Cons of Bybit:
- Unaccessible using a US IP address due to regulatory limitations.
- Limited to Bitcoin and Ethereum options.
2. Binance: The Largest Crypto Options Exchange
As the highest-volume crypto exchange, Binance also leads the options trading space while supporting five major crypto assets. Binance provides you with educational content describing options basics, trading strategies, risk management and more.
Seasoned options traders access everything from basic call/put contracts to exotic option combinations using Binance’s collateral-isolated margin mode for risk control.
With the Binance referral programme, you can earn 40% commissions whenever someone registers via your referral link.
Supported Assets: Bitcoin, Ethereum, Ripple, Dogecoin and Binance Coin options
Leverage: Up to 125x available on options
Fees: 0.03% maker and taker fee
Pros of Binance:
- Binance supports five cryptocurrencies (BTC, ETH, BNB, XRP, DOGE) for crypto options trading.
- It offers you up to 125x leverage on option trades.
- Binance has high liquidity and fast execution times.
Cons of Binance:
- Binance does not accept U.S. dollars (USD) for deposits and withdrawals on the global platform.
- Binance faces regulatory concerns and legal issues in the U.S. and is under investigation by the U.S. SEC.
3. OKX: One Of The Popular Crypto Options Trading Platform
OKX is a reliable crypto options trading platform that allows you to trade options contracts for Bitcoin and Ethereum. It has a user-friendly and secure platform. You can trade from the OKX website, mobile app, or API.
OKX supports European options. European options let you exercise the rights and close a position at any point before the expiry date. In contrast, American options give the right you options to close a position at any point before the expiry date. It offers a minimum contract size of 0.01 BTC or 0.1 ETH up to 1 BTC or 1 ETH.
Supported Assets: Bitcoin and Ethereum Options
Leverage: Up to 100x
Fees: 0.02% maker fee, 0.03% taker fee
Pros of OKX
- Competitive options trading fees start at 0.02%.
- OKX supports various trading products, such as options, futures trading, margin trading, copy trading, etc.
- It offers an intuitive interface for options trading.
- You can use 100x leverage to take a trade.
Cons of OKX
- It only supports BTC and ETH in options trading.
- OKX is unavailable to users in the USA.
4. Gate.io: Great for Beginner Options Traders
Gate.io is a popular crypto exchange with trading solutions such as spot, margin, futures, and options. Catering to traders across the globe, Gate.io makes options trading easy for beginners while still offering advanced functionality for power users.
Options trading is now more accessible due to responsive customer service and extensive educational materials focusing on options education. Its simple and user-friendly web and mobile interface makes it more useful for beginners. In terms of security, Gate.io uses cold storage for storing users’ funds while still enabling instant deposits and withdrawals.
Supported Assets: Bitcoin Options
Leverage: Up to 100X
Fees: 0.04% handling fee
Pros of Gate.io
- It offers a straightforward interface, which simplifies option trading.
- Gate.io has detailed learning materials that explain options and complexities.
- Gate.io has top-notch security infrastructure with cold storage and 2FA features.
Cons of Gate.io
- Gate.io is unavailable in some regions, such as the United States, Canada, Japan, etc.
- Currently, this options trading platform is limited to Bitcoin-only options.
5. Delta Exchange: Lowest Fee Crypto Options Trading
Delta Exchange allows trading options contracts on Bitcoin and Ethereum with expiration cycles ranging from daily to weekly and monthly.
This crypto options trading platform also supports easy options, which are simplified options that only require you to predict the direction of the underlying asset’s price movement (up or down). Easy options have fixed payouts and expiration dates that are appropriate for beginners. Delta Exchange claims to have the tightest spreads in the industry for options trading, with less than 2 basis points (bps) for Bitcoin and Ethereum options.
Supported Assets: Bitcoin and Ethereum Options
Leverage: Up to 100x
Fees: From 0.03% maker and taker fee
Pros of Delta Exchange
- Delta Exchange has a comprehensive and user-friendly interface to show the daily gains and losses and the performance of each position and strategy.
- It offers advanced tools such as options spreads, profit and loss analytics, and strategic trading solutions.
Delta Crypto Exchange uses high-security practices to protect your funds, such as cold storage, multi-signature wallets, and advanced encryption to protect the funds and data.
Cons of Delta Exchange
- Delta Exchange has restricted access to visitors and residents of the United States and a handful of other jurisdictions. So, unfortunately, American traders miss out on the competitive pricing models.
- Delta Exchange does not provide many advanced trading products, such as margin trading, leverage tokens, trading bots, or copy trading.
6. Deribit: Specialised Crypto Options and Futures
Deribit crypto options trading platform supports Bitcoin options trading as well as options trading for ETH. You can choose from various options on the platform; each option contract has a set date and strike price.
Deribit focuses specifically on institutional investors, setting it apart from mainstream retail-focused platforms. As an institutional platform, Deribit uses high-frequency infrastructure to deliver ultra-low-latency connectivity and specialised order types.
Pros of Deribit:
- It offers automated trigger trading for hands-free execution.
- It has multiple safety measures, including 2FA, SSL encryption, cold storage, and others, to ensure high security.
- Deribit has high liquidity and volume for options traders.
Cons of Deribit:
- You can only fund your account using BTC.
- It has a complex interface that is less suitable for new traders.
Our Verdict
In our detailed analysis of the top options trading platforms, we looked at security, option variety, liquidity, fee structures, and user experience. Each platform supports diverse funding options, from fiat to card payments.
Here are the best platforms for cryptocurrency options trading, based on our comprehensive review.
- Bybit Options: The overall best crypto options trading platform.
- Binance Options: A strong and reputable crypto trading platform.
- OKX: Ideal crypto options trading platform for beginners.
- Gate.io: Ideal exchange for No KYC options trading.
- Delta Exchange: Best for lowest fees for Bitcoin options trading.
- Deribit: The best option trading platform for institutional traders.
Understanding Crypto Option Trading
Options contracts provide buyers with the right, without any obligation, to buy or sell an underlying asset at a set strike price by the expiration date in return for paying an upfront premium.
With crypto options, the underlying asset traded is a digital currency like Bitcoin or Ethereum instead of a traditional stock or commodity. Crypto options enable traders to benefit from crypto price moves in either direction without owning the base cryptocurrencies.
As the popularity of crypto options trading grows, it’s important to understand how everything works before risking your capital.
Two Fundamental Types Of Option Contracts
There are two main types of option contracts: Call and put.
- A call option is the right to buy an asset at a specific price on a specific date.
- A put option is the right to sell an asset at a specific price on a specific date.
- Call Options: Call options provide buyers the right to purchase the underlying cryptocurrency asset at the specific strike price set in the contract. Traders buy call options when they are bullish and expect rising crypto prices.
- Put Options: Put options give buyers the right to sell the underlying crypto asset at the predefined strike price by the expiration date. Traders buy put options when bearish and forecast falling prices.
Additionally, there are two styles of options – American and European.
American vs. European Style Options
- American: You can exercise this any time before and/or on the option’s expiration date.
- European: You can only exercise this on the option’s expiration date.
American-Style Options: American-style options in the crypto market allow you to exercise the option any time before the expiration date. This flexibility can be helpful in the volatile crypto market, allowing you to capitalise on price movements in your decisions.
European Style Options: In contrast to European-style crypto options, you can only exercise them on the expiration date itself. This may result in a lesser premium due to the exercise restriction, but it offers a simple exercise and settlement process.
You profit on options contracts by buying them when crypto prices move favourably beyond offsetting the premium paid to enter the trade. If prices move against you, the option expires worthless, and you lose just the premium spent upfront.
Options contracts have defined expiration cycles, ranging from daily, weekly, to quarterly. Once an option expires, it no longer holds value or can be exercised. So timing is critical when trading options to have exposure when anticipating price swings.
How Does Crypto Option Trading Work?
Crypto option trading allows traders to profit from movements in the prices of digital currencies like Bitcoin and Ethereum without buying them. Instead, you purchase options contracts that allow you to buy or sell the crypto at a set price. This is called the strike price, and you can do it on or before a specific expiration date.
For example, say Bitcoin is trading at $40,000 per coin right now. You could buy a call option contract that gives you the right to purchase one Bitcoin for $42,000 at any point over the next month. If Bitcoin rises to $45,000, you can use your call option to purchase it at the contracted lower price of $42,000.
You would then immediately sell it at the market price of $45,000 and gain the $3,000 difference. Options essentially allow you to benefit from price movements without having to risk as much capital as buying the asset outright.
When buying options, you pay what’s called a premium to the person selling you the contract. So, there is some upfront cost. However, your total losses are then limited to the amount of that premium if the option expires worthless.
You can also generate income by selling options, but it involves a higher risk of having to sell or buy the crypto at the set strike price when the option is exercised.
How To Trade Crypto Options?
Understanding the theory behind option contracts is the easy part. Putting that knowledge into practice takes precise execution. Follow these step-by-step processes to understand how to trade crypto options on the crypto options trading platform.
1. Evaluate Market Conditions
Analyse on-chain and price action metrics to determine your market bias and forecast where you see prices heading. Identify target entry, exit and stop-loss levels.
2. Choose An Options Trading Platform
Select a reputable exchange from the list above that provides the assets, features, and functionality aligned with your trading plan. Sign up and get verified.
3. Fund Your Account
Deposit cryptocurrency or fiat currency into your exchange account to trade options against.
4. Enter Your Position
Use limit orders, leverage and advanced orders to enter your chosen options trade with defined upside targets and downside risk management in place.
5. Actively Manage Your Trades
Watch the live market price relative to your entry, targets and stop loss. Be ready to close your position early if warranted or allow it to expire if moving as forecasted. Set up alerts on key technical levels that trigger orders if they are hit.
6. Withdraw Profits
If your trade hits its upside profit target, close the position and withdraw a portion of your gains. Return the original capital to your hardware wallet while leaving funds to enter additional options trades.
Be aware that options trading does involve significant risk, given the inherent market volatility. So, implement sound risk management using stop-losses and appropriate position sizing.
What Are The Benefits Of Crypto Option Trading?
Although options trading involves greater risk than just purchasing and holding cryptocurrency, it has advantages.
Here are some of the advantages of crypto options trading.
1. Limited Risk Exposure
With options, your upside profit potential is unlimited, yet the most you can lose is the premium paid to enter the contract. The underlying crypto price can plunge, but options traders lose only what they spent upfront if proven wrong.
2. Hedging Spot Market Exposure
Options are insurance policies against declines across a broader crypto asset portfolio. If prices fall significantly, gains from put options can offset losses experienced in underlying coin positions.
3. Greater Flexibility
Options enable tailored speculation on price movements in either direction for low, upfront costs rather than requiring outright crypto purchases.
4. Enhanced Profit Potential
The intrinsic leverage of options contracts magnifies percentage gains relative to price movements of the underlying cryptocurrencies. A 25% upside price swing leads to exponentially bigger option gains.
5. Diversification
Adding options contracts to a portfolio already containing owned crypto coins or tokens enhances diversification across asset types.
What Are The Risks Of Crypto Option Trading?
Options are still very speculative instruments in a market that has historically been volatile, even though they have defined limited risk. They also have some notable drawbacks.
1. Severe Volatility
The extreme price swings of crypto assets mean options contracts can swiftly move in or out of the profitable territory. Bitcoin options around expiration dates fluctuate 20–30%+ intraday!
2. Limited Liquidity
Thin liquidity makes entering and exiting options contracts challenging during moments of peak volatility. This contributes to sharp price movements and potential slippage in orders.
3. Complex Instrument
Options have nuanced payoff calculations based on varying inputs like delta, gamma, and implied volatility. Mastering these intricacies involves a steep learning curve unsuitable for many novice traders.
4. Strict Expiration Timeframes
Being time-based instruments, the tight expiration cycles of options contracts limit exposure to price moves. Predicting short-term swings proves incredibly difficult.
5. Minimal Regulation
The often underregulated crypto space results in options exchanges with less transparency, security standards, and accountability compared to traditional financial markets.
6. Total Loss Potential
Options have nuanced payoff calculations based on varying inputs like delta, gamma, and implied volatility. Mastering these intricacies involves a steep learning curve unsuitable for many novice traders.
How To Select Crypto Options Trading Platforms?
Even with the risks mentioned, selecting a reliable exchange is still essential before trading cryptocurrency options. Use this 7-step checklist when shortlisting top contenders:
1. Diverse Options Contracts
Seek variety in durations (hourly, daily, and weekly contracts) plus both in- and out-of-the-money strike prices catering to diverse trading strategies.
2. Low Trading Fees
Given the high-risk, high-reward payoff structure, lower fees keep more profit potential in your pocket. Top exchanges charge 0.03% or less.
3. Streamlined KYC Verification
Reputable platforms require KYC checks per anti-money laundering laws before allowing withdrawals or deposits. Ensure smooth identity verification.
4. Multiple Funding Methods Supported
To fund your trading account, look for platforms that accept fiat currency deposits like USD and EUR from your bank account, wire transfer, or payment processor.
5. Intuitive Trading Interface
The options order ticket, risk analytics dashboard, and account tools should use clean, easy-to-understand terminology, along with intuitive graphical layouts.
6. Advanced Trading Features
Seek platforms offering charting and volatility analytics, backtesting capabilities, trading algorithms via FIX/API integration, and sophisticated order types to refine your options trading strategy.
7. Responsive Multi-Channel Customer Support
Given the complex nature of options and leverage usage, ensure the exchange offers 24/7 customer service accessibility via live chat, email and phone support.
Is Crypto Options Trading Different From Traditional Options Trading?
Type | Price Volatility | Risk | Trading Open | Exchanges |
Traditional Options | Low | Low | Monday to Friday, 9:30 A.M. to 4:00 P.M. trading time. | Usually, focus just on traditional options. |
Crypto Options | High | High | 24/7 | Usually, focus just on crypto options. |
- Trading Hours: Crypto options trade 24/7 as cryptocurrency markets operate around the clock. Stock options usually operate from Monday to Friday during exchange hours (9:30 a.m.–4 p.m. EST).
- Expiration Dates: Crypto options offer a range of expiration dates, some extremely short-term, at just 24 hours. Stock options expire on set monthly cycles, resulting in longer durations.
- Margin Trading: Crypto options traders can enter leveraged positions using borrowed funds from the exchange. Stock traders need collateral and can take limited leverage.
- Settlement Method: Cryptocurrency options settle into the underlying coin or USD stablecoins. Equity options settle in cash upon expiration rather than dealing with the stock itself.
Conclusion
Crypto options trading allows experienced traders to profit from cryptocurrency volatility and price swings. You can use the best crypto options trading platforms, such as Binance, Bybit, and Delta Exchange, for your profitable options trading. These are the top platforms available now based on factors like fees, features, assets, security, and more.
Remember that crypto options trading carries significant risk. Use appropriate position sizing and risk management strategies, and set stop-losses on all trades.
Moreover, earning money from crypto options or trading crypto attracts taxes in various jurisdictions. Manually checking and calculating taxes can be complex. To automate your calculation and reporting of crypto tax, you can use KoinX. KoinX integrates with crypto exchanges and Web3 wallets and calculates your taxes seamlessly. Join KoinX today and make your crypto journey easier.
Frequently Asked Questions
Is Trading Crypto Options Profitable?
Yes, crypto options trading is a profitable investment strategy. It requires a detailed understanding of the cryptocurrency and its risks. You have to choose a reliable options trading platform with good features and a low trading fee.
Which Platform Is Best For Crypto Options Trading?
There are various crypto option trading platforms that you can choose from as per your requirements and goals. Our picks for the best crypto options trading platforms are Bybit, Binance, and Delta Exchange.
Can I Trade Crypto Options On Coinbase?
No, you cannot do crypto options trading on Coinbase. It is a well-known crypto platform that offers spot trading. If you want to trade crypto options, you can use a platform that supports this product, such as Bybit and Binance.
Can You Trade Options On Crypto?
Yes, crypto options trading is becoming a more common product in the crypto space. Many crypto exchanges are offering option trading services. These crypto options trading platforms allow you to access potential profits with lower risk than other crypto derivatives products.
Where To Trade Crypto Options?
As options trading is growing in demand, many popular crypto exchanges are offering options trading. You can choose from our list of the best crypto options trading platforms, such as Bybit, Binance, or Delta Exchange.
Can I Trade Options On Binance?
Yes, you can trade crypto options on the Binance platform. Binance offers American-style option trading. That means you can exercise options any time before the expiration date. Also, Binance is reliable and one of the most well-known crypto exchanges in the world.
