Mar 20, · 10 Best Bitcoin Trading Platform - Are you perform trade with cryptocurrencies and looking best crypto trading exchanges, where you can perform your long-term or day to day trading, but don't know which platform will best for you, and how you can save your money on these cryptocurrency exchanges, check out this post. May 06, · If you are looking for trusted and legit Bitcoin Investment Sites, below we’ll give you the updated list of the best ones for eToro (official website) and Plus (official website) are some of those, according to the thousands of users who trade everyday with . Bitcoins have grown to be the topmost cryptocurrency worldwide today; it might even overthrow regular money some day! This is a good news because it means you can earn a lot of money when trading Bitcoin. However, for you to get the most out of this trade, you must make major speculations and pick the best places to invest your bitcoins in.
Best place to trade bitcoinBest places to trade bitcoin online in
If you are a US resident then you can open a trading account with eToro. Plus allows you to buy and sell all the best cryptocurrencies via CFDs , such as Bitcoin, Ethereum, Litecoin and Ripple, and many more.
This is one of the best sites available, especially because it makes trading extremely straightforward. With Coinbase Official Website , you can do everything that can be done with Bitcoins. It also allows you to pay for goods and services with a couple of clicks. Since it is arguably the safest platform, we have placed it at the very top of our list. And if you get familiar enough with the platform, you will find it fairly easy to make a profit.
It has a page for each country that supports the currency, as well as a list of both buyers and sellers. This is mostly thanks to its built-in escrow system that protects individuals from scammers.
Apart from allowing you to buy and sell your units, it offers a unique layout that helps you navigate the digital currency world with greater ease. If you are a beginner and still need to learn, you might want to start by signing up on Local Bitcoins.
Kraken was one of the first sites that passed an independent audit. The platform itself is completely focused on trading in bitcoins. It is an exchange platform that can be used by both individuals and businesses. Just like Coinbase, they boast a great level of security. And it has been rated as one of the best sites for Bitcoin investment.
This platform was the first operator to get a license for dealing in bitcoins. They recently celebrated their fifth anniversary, and are currently one of the most popular sites available. The biggest advantage to using BitStamp is the fact that it supports both credit and debit cards. With it, you can also turn your bitcoin units into a proportionate amount of gold. Just like Coinbase, this is an extremely safe site, since all transactions are monitored.
There you can both buy and sell your bitcoins, as well as invest in them. One of the most highly rated peer-to-peer sites for investing in Bitcoin, Paxful has thousands of users from all over the world.
The process is very simple — you only need to select your preferred payment method and the number of coins you want to buy. Being a more advanced trading tool does bring a number of benefits that make Bitcoin and crypto options an appealing choice for many traders. Though it may take some time to fully understand, there are plenty of reasons why options should be considered as part of any carefully constructed portfolio, including;.
Just like in crypto margin trading , one of the major benefits of options is their ability to allow you to speculate with more capital than you actually have. This works because options allow you to profit on changes in the underlying asset value, rather than the cost of your position. For example, rather than buying Bitcoin for its spot price, you can instead by 1 Bitcoin option contract, which allows you to profit from the difference in the strike price vs spot price of BTC.
Unlike some other derivatives, when buying a Bitcoin option, the maximum you can lose is the cost of the option premium. This means that no matter how far out of the money you go, you can never lose more than what you paid for the option. Because of this, with Bitcoin options, you never run the risk of getting into debt or entering a deficit on your chosen trading platform.
As previously mentioned, options contracts come in two main varieties — calls and puts. By buying a put option in a declining market you will be able to essentially short BTC, earning a potentially chunky profit if BTC falls below the strike price.
With Bitcoin binary options, this is reduced to a simple prediction whether Bitcoin will fall to a lower value than its current price. If you are correct, you win a specific payout amount, while risking only the cost of your option premium. As with any investment, hedging your risks is always a good idea. With Bitcoin options, this is particularly useful when you already own Bitcoin at the spot price.
Buying put positions can allow you to cheaply hedge against a declining market, protecting you from any sudden volatility or crashes. In addition, since options contracts are typically low cost, relative to the underlying asset price, they remain one of the most cost-effective ways of hedging against your existing investments.
As such, hedging with options is one of the most common strategies used by experienced investors. Although Bitcoin options can provide excellent investment opportunities, they also come with a unique set of risks and drawbacks, that may make them unsuitable for some investors. This is particularly true when using options for speculative purposes, rather than using them to reduce or eliminate your risks in another position.
With that in mind, here are some of the most common pitfalls to watch out for when trading options. This means if your Bitcoin option expires out of the money, you will lose your entire initial investment known as the option premium.
If you purchased a large number of contracts, this can be a considerable loss. This is particularly important when investing in significantly out of the money options, which, while potentially highly profitable, are very likely to expire worthlessly.
For most exchange platforms, a per contract fee is charged when buying options. This fee is usually a small fraction of the underlying asset value or can be a fixed fee for certain options.
Beyond this, many Bitcoin options platforms also charge an additional settlement fee, which tends to range between 0. However, since these are charged on underlying asset value, rather than your profit, these fees can consume a significant chunk of your profits. Because the Bitcoin options space is still relatively small and has only a few well-known exchange platforms, there can be liquidity issues.
Unlike standard spot trading exchanges, Bitcoin options exchanges tend to suffer from low daily trade volume and poor liquidity. This is especially true for high-value options, with only certain expiries and strikes having sufficient liquidity. This poor liquidity can lead to slippage when opening or closing a position, with the option being traded at a rate lower than expected due to a delayed match.
As a concept, Bitcoin options trading can be relatively difficult to grasp, particularly for new traders due to the technical vocabulary that is often used to describe it. Because of this, if you intended to get involved in options trading, or just want to brush up on your investment jargon, then these are the key terms you will want to understand. If you are bullish on the price of Bitcoin, then you would consider opening a call option, as this will allow you to buy BTC at the strike price, even if the market value is higher.
In essence, Bitcoin call options allow you to speculate on the future growth of Bitcoin. You could then go on to sell this 1 BTC at a profit. If you are looking to short Bitcoin, and believe that its price will go down over the option contract term, then you would want to open a put contract. This will essentially allow you to sell Bitcoin at the strike price, even if the market value is much lower.
After buying a put option, the more BTC goes down before expiry, the more your option is worth. One of the most important terms to consider when purchasing a Bitcoin option is its strike price.
In short, the strike price is the price a Bitcoin option holder can buy call option , or sell put option an underlying asset when the option is exercised. This is the last date by which the option must be exercised before automatically expiring. After the maturity date, the seller will no longer have any obligation to the buyer, and the buyer will be unable to exercise his or her option. Typically options will have a fixed expiration date, this might be 1 day, 1 week or any length of time.
If your option is out of the money when expiring, you will lose the amount you paid for the option. When it comes to investments, Bitcoin options can be considered a somewhat advanced trading tool, and as such, are best utilized by experienced investors. Despite this, if you are looking to get to grips with Bitcoin options, here are two helpful tips to help keep you safe when navigating this asset class.
As with any investment, it is extremely important to ensure that you are dealing with a reputable platform. Unfortunately, in the world of cryptocurrencies, not every platform is as it appears, so it is wise to do a little digging if anything seems suspicious.
Thankfully, there are a number of simple indicators that can be used to better determine whether a platform is trustworthy or not. These include being in operation for an extended period of time, being regulatory compliant and maintaining an excellent track record for customer satisfaction. Although trading Bitcoin options can be a lucrative investment modality, it does come with its risks, and these risks can be quite costly if certain precautions are not taken.
In many cases, Bitcoin options are simply used as a relatively inexpensive way to hedge risk against your spot positions. Because of this, options should usually online constitute a small part of your portfolio , and hugely out of the money options should be avoided where possible. Good insight and knowledge on the latest updates on best bitcoin options trading exchanges.
You have guided all the information very nicely here. CoinDiligent is the go-to resource for cryptocurrency traders. We write in-depth trading guides, valuable exchange reviews, and share priceless trading tips from top crypto traders.
So, we created this guide to help you find which Bitcoin options exchange is best for you. Visit Platform. Trade Bitcoin Options on Deribit.