Some investors focus on blockchain option investment, and many others may have only heard about it and are afraid to enter because of the high risk. Others want to play blockchain options but don't know how to get started.
Let's take a look at what exactly is a blockchain option? Is it really risky? What can we do to make profit and avoid losses in blockchain options trading? If you are also interested in these questions, please read on:
What is blockchain option？
Option trading started in the US and European markets in the eighteenth century. Options are contracts that give the owner the right to buy or sell an asset at a fixed price, called the strike price, for a specific period of time. The “asset” may be several kinds of underlying securities.
BLOCKCHAIN OPTIONS are based on options and blockchain digital currency transactions. The blockchain digital currency matching options are innovated. The matching mechanism is completely achieved. There is no banker or control, and the binary options market is opaque. There is risk control, and blockchain options are completely matched. All trading mechanisms of blockchain digital currency transactions are completely different from the trading mode of binary options.
Why trade blockchain options?
This type of investment strategy has its advantages.
The characteristic of blockchain options is that the strategy is very flexible
As a trading derivative of blockchain digital assets, blockchain option trading has the advantages of controllable risks, higher potential profits, timely income, and simple transactions. A more efficient matching mechanism has won the favor of the blockchain asset market.
Therefore, no matter your outlook is bullish, bearish or neutral, as long as your prediction is correct, there is a strategy that can be beneficial to you.
Which exchange to choose to trade blockchain options?
I recommend the following based on reputation, security, support and fees：
Another notable mention is BigoMex, offering 0 blockchain option trading fees, in addition to a 100% trading fee reduction(use BGM) for new sign-ups. BigoMex offers a beginner-friendly and easy to use trading platform. BigoMex also currently has the best selection of cryptocurrencies on the market for world wide citizens.
Other things to note
Traditional options sound like "gambling", but in fact blockchain options are different. It is a simple version of the contract, which is more suitable for frequent transactions by speculative users with relatively small capital, because it has no procedures at all. Fees can greatly control risks and costs, compared to frequent spot or contract orders. If you prefer to use a small account（less than 5000USDT） in the short term, you can actually use 10% of your funds in your account to try to trade. As a newbird trader, not losing money means gaining. Restraint is actually a basic rule of options trading. Without restraint, no matter what kind of investment you make, it is easy to lose in the end.
NOTE：Please use this feature carefully, because if your opinion is incorrect, it can also cause significant losses.
For details of blockchain options, please check previous articles：