BitOffer Institute：the golden track after halving — Bitcoin Options

[CastyLamer]

Since bitcoin production was reduced in May, the bull market did not appear as expected. After repeated failures of reaching $10,000, the balance of bitcoin exchanges has hit new lows in succession. Data on June 7 shows that the bitcoin exchanges on the entire network are 2310466.6, which is 300,000 bitcoins less than the high point at the beginning of the year. This shows that in the unclear market, more and more holders choose to trade for profit, rather than cash out.

Compared with the continuous decrease of Bitcoin spot circulation, the trading volume of Bitcoin options has shown explosive growth. According to statistics, the position of bitcoin options exceeded $1 billion for the first time on May 8, and this figure exceeded $1.5 billion at the end of May. BitOffer, one of the world’s largest digital currency derivatives trading platform indicate that since BitOffer launched the industry’s first Bitcoin option contract last October, its option trading users has exceeded 130,000, and the average daily trading volume has achieved 500% growth.

According to Lucian, the chief analyst at BitOffer, traders focus on digital currency options investment while the current halving has not started and there is no clear direction in the market, is because those options have the advantages of high leverage, no risk of exploding positions and low fees.

At present, the main participants in options trading are miners, institutional hedging traders, and individual traders. For miners and institutional traders, options as a hedging and hedging tool that have a lower risk cost than futures. For individual traders, options are more like a futures contract that will not be liquidated. The leverage of Option can be up to a thousand times, and not the margin trading system. Thus, there is no risk of liquidation and the trading cost is also lower than the futures margin, which is an excellent tool that throws out a minnow to catch a whale.

BitOffer is the first one to launch the digital currency options, and currently also the largest exchange for digital currency derivatives. The reason why it can stand out from many competitors, Lucian said this is because BitOffer’s bitcoin options following the American option trading rules, with 0 handling fees and 0 margins, but also can be closed at any time during the holding period, the transaction is flexible and free. In the current market, the options products of OKEX and Deribit are European options. Which in addition to paying the option fee, also needs to pay an additional transaction fee, and the option cannot be closed without expiration. It is not suitable for short-term flexible transactions.

Lucian said that the current market lacks largely continuous fluctuations, and the market comes and goes quickly. The flexibility of trading is particularly important. For example, on June 2, Bitcoin fell by nearly 800 points in 5 minutes. If it is a BitOffer buy a put option, closing at the low position immediately could make $800. However, for European options on other exchanges, even if they are in the right direction and at a low point, the option cannot close the position until the time is up, and we can only watch the market rebound back and the profits are running out.

Lucian believes that under the halving of the market, investors will prefer to choose the suitable investment tools to fill the vacancies in the transaction, which will grow the trading volume of options. BitOffer, as the industry’s first exchange to launch bitcoin options, currently also lists Ethereum options, which can be going-long and going-short. The trading cycle is flexible from 2 minutes to 7 days with 0 margin and 0 handling fees. Also, available to close the position, helping investors to pave the golden track before the bull market.