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Crypto Options in America: FTX Goes Live

 

Crypto Options in America: FTX Goes Live

Amysite - Trading cryptocurrency options has always been risky, but it hasn’t been available in the United States until now. FTX, which stands for Financial Trading Exchange, has just launched its platform in the US, and traders are loving it so far. 

You don’t have to wonder how FTX can be so successful; this platform was built by experienced experts in the field of investment banking and financial trading. After all, these same experts helped build the world’s largest banks and even stock exchanges themselves.


What Are Options

In the most basic sense, an option is a contract that gives the holder the right, but not the obligation, to buy or sell an asset at a specified price on or before a certain date. Options are a type of derivative, which means their value is derived from an underlying asset. In this case, that underlying asset is cryptocurrency. 

Like other derivatives, options can be used for speculation and hedging purposes. They also allow people who don’t want to risk all of their assets on a single position in order to diversify their portfolio (a strategy known as spreading out risk). 

If you think bitcoin prices will rise, for example, you could buy a call option (which would give you the right to purchase bitcoin at today’s lower price) and then hope that it increases in value over time.

 Alternatively, if you think bitcoin prices will fall, you could buy a put option (which would give you the right to sell your bitcoins at today's higher price), hoping they decrease in value over time. The trade-off with either of these strategies is that if prices do go up or down as expected, someone else might have profited more than you did because they bought/sold the stock without using any options while you did use them.

Read : How to Trade Crypto Options on FTX Exchange in Canada

Benefits of Crypto Options

Crypto options offer a number of benefits over traditional options, including 24/7 trading, no counterparty risk, and lower fees. With crypto options, you can trade on the price of any major cryptocurrency, including Bitcoin, Ethereum, Litecoin, and more. 

Plus, with FTX's new crypto options product, you can trade on the same platform as your other favorite cryptos. The first set of expiration dates for FTX Crypto are July 7th - September 12th. You will be able to use your funds from Uphold to make deposits into FTX for these offers. 

There is also currently a promotion for traders who want to try out the service before investing too much. They can deposit up to $10,000 in crypto with zero percent margin interest and get free one-year licenses of 100 shares each of both Apple Inc. (AAPL) and Amazon (AMZN).

Read : The Inside Scoop on FTX's Crypto Options Fortune Cookie

The Future of Cryptocurrency

Cryptocurrency is still in its early stages, but it has already made a big impact on the financial world. Cryptocurrency is a digital or virtual currency that uses cryptography to secure its transactions. Cryptocurrency is decentralized, meaning it is not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. 

Cryptocurrency is often used as an investment, but it can also be used to purchase goods and services. More businesses are accepting bitcoin as payment because of its low transaction fees and anonymity (users’ identities are usually hidden behind their public addresses). 

The value of cryptocurrencies changes daily based on supply and demand. Bitcoin, for example, was trading at $4.4K USD at the time of this writing. There are many other types of cryptocurrency which investors may want to consider before deciding what best suits their needs and risk tolerance level. For example, Litecoin trades at $78 USD at the time of this writing while Ethereum trades at $294 USD.