Best Crypto Options Trading Platforms In 2024

If you’re interested in crypto trading, you’ve probably heard about options trading. Options trading is becoming a vital tool for traders who want to bet on asset prices or protect their investments due to its variety and complexity. This form of trading, which grants the right but not the obligation to buy or sell at a particular price, is gaining attraction in the crypto world.

The desire for options trading grows as crypto traders develop and look for complex ways to increase their profits. In this article, we’ll examine some of the best crypto options trading platforms in 2024. However, Our selection factors covered a wide range of important factors that are necessary for a profitable trading experience. Including fee structures, market liquidity, user friendly, and a wide range of supported digital currencies.

What Is Crypto Options Trading?

Let’s take a moment to explore the idea of crypto options trading before we go into our list of the best platforms for trading them. Crypto options trading involves dealing with contracts that use cryptos like Bitcoin or Ethereum as the underlying assets. These options contracts grant the holder the right to buy or sell the underlying crypto at a particular price, known as the strike price, on or before a specific date, referred to as the expiration date. Importantly, holding an option gives you the right, but not the obligation, to make this transaction.

However, the ability to exercise an option, or put it into action by buying or selling the asset, depends on the type of option contract. With a European-style option, this can only happen on the expiration date. On the other hand, an American-style option offers more flexibility, allowing the holder to exercise the option any time up until the expiration date.

“Call” options are preferred for investors who expect a rise in the price of cryptocurrencies since they grant the opportunity to buy at the strike price. On the other hand, traders who expect a price decline choose “put” options, which grant the option to sell at the strike price. By using options to hedge or speculate according to their estimate about the market, traders use this framework to negotiate the unstable crypto market.

List Of The Best Crypto Options Trading Platforms

Numerous features, like low fees, great liquidity, an easy interface, support for numerous cryptocurrencies, and advanced trading tools, are available on the top crypto options trading platform. This is the list we advise you to check out:

1. Binance Options

One of the unique aspects of Binance Options is their pricing and settlement in stablecoins like USDT, which helps customers understand and improve the trading process. This approach, compared to coin margined options, reduces concerns about the collateral’s volatility, making it easier for traders to manage their positions. Moreover, Binance Options present a diverse range of expiry times—from as short as 10 minutes to as long as a day—providing traders greater flexibility and command over their trading strategies.

Engaging with this platform means traders only need to invest a premium to gain exposure to the underlying asset. This effectively allows for leveraging positions with a smaller capital. Additionally, Binance offers the choice between placing a best-bid-offer (BBO) or a limit order to suit traders’ pricing and operational choices.

Trading Fees and Leverage:

• Options Trading Fees: A nominal 0.03% for both maker and taker fees
• Maximum Leverage: Opportunities up to 125x
• Supported Options Assets: Includes major cryptocurrencies like BTC, ETH, BNB, XRP, and DOGE

Advantages of Using Binance:

• It offers extremely low costs for trading crypto-to-crypto exchanges, and holders of BNB tokens can receive even more discounts.
• The platform, which can execute 1.4 million orders per second, is known for its high liquidity and quick execution speeds.
• Binance guarantees the safety of a wallet that supports more than 500 different coins and tokens.
• Binance Research and Binance Academy offer a wealth of community support and learning materials.

Challenges Faced by Binance:

• It is under strong legal monitoring in the United States, including an SEC inquiry.
• Additionally, the global platform does not offer USD for withdrawals or deposits.

2. Bybit Options

Bybit stands out as a leading platform for those interested in futures and options trading in the crypto world. Traders have the flexibility to engage in buying/selling or putting options across various strike prices and expiration dates. Bybit offers European-style options, requiring that options can only be executed at their expiration. The platform conducts settlements for options in USDC and supports various trading strategies, including straddles, strangles, spreads, and butterflies.

The user portal on Bybit is very simple and easy to understand, offering traders a complete view that includes the options chain, order book, recent trades, positions, orders, and other important trading tools on a single page. Bybit boasts a high-performance trading engine capable of handling up to 100,000 transactions per second, alongside a 99.99% system working rate.

Trading Fees and Leverage:

• Options Trading Fees: Maker and taker fees are set at 0.02%
• Maximum Leverage: Traders can leverage up to 100x
• Supported Options Assets: The website supports options trading for Bitcoin and Ethereum only

Advantages of Using Bybit :

• Because of Bybit’s very effective trading engine, which can handle a large number of transactions per second, there is very little price glitch.
• With the help of the platform’s automated trading bots, traders may automatically establish and stick to strategies.
• provides 100x leverage for trading cryptocurrencies.
• Bybit has created a mobile application that works with iOS and Android phones, making trading easier when on the go.

Challenges Faced by Bybit:

• Regulatory controls prevent Bybit’s services from being available in the U.S.
• Direct withdrawals to bank accounts are not supported on Bybit, and require the use of third party services for such transactions.

3. OKX Options

The platform leans towards the European options style, meaning these options can only be exercised on their expiration date, unlike their American counterparts which can be exercised at any point before expiry. OKX facilitates trading with contract sizes up to 1 BTC or 1 ETH and uses a contract multiplier of 0.01, providing a range of strike prices and expiry dates to match different trading strategies and risk-taking ability.

Furthermore, a key strength of OKX is its comprehensive risk management system tailored for options trading. This system allows traders to keep a real-time check on margin balances, liquidation prices, and unrealized gains or losses. To ensure fairness and prevent manipulation, OKX adopts a mark price mechanism for valuing options contracts and incorporates an auto-deleveraging (ADL) system to mitigate loss risks in volatile market conditions.

Trading Fees and Leverage:

• Options Trading Fees: The platform charges a 0.02% maker fee and a 0.03% taker fee, with discounts available for VIP users and OKX token holders.
• Maximum Leverage: Offers leverage up to 100x.
• Supported Options Assets: Trading is currently limited to BTC and ETH.

Advantages of Using OKX:

• OKX supports deposits in 30 fiat currencies, alongside various payment options including bank transfers and credit/debit cards.
• It provides a wide variety of trading products beyond options, like futures, margin trading, and copy trading.
• The platform offers several “earn” products, enabling users to augment their portfolios through simple earnings, structured products, and on-chain earnings.
• Its “jumpstart” program presents early investment opportunities in emerging and promising projects.

Challenges Faced by OKX:

• Unfortunately, OKX is not available to U.S. citizens due to regulatory restrictions.
• In the realm of options trading, the platform currently limits its offerings to BTC and ETH.

4. Deribit Options

Deribit stands out as a premier destination for those interested in trading crypto options with a European style, predominantly focusing on Bitcoin and Ethereum. This platform is notable for its significant market share, handling nearly 90% of BTC and ETH options trades, with daily trading volumes often surpassing $500 million.

The exchange isn’t just about options; it also offers perpetual contracts, which are designed to track the underlying asset’s price closely without an expiry date. Additionally, Deribit provides futures contracts for Bitcoin and Ethereum, supporting up to 100x leverage.

Pioneering the space, Deribit was the first to introduce Bitcoin options and now boasts the title of hosting the most liquid Bitcoin options market globally. The platform prides itself on fast, low-latency trading, a straightforward fee model, and a comprehensive risk management system.

Trading Fees and Leverage:

• Options Trading Fees: Makers are charged 0.03%, while takers incur a fee of 0.04%.
• Maximum Leverage: The platform allows for up to 100x leverage.
• Supported Options Assets: Options trading is available exclusively for Bitcoin and Ethereum.

Advantages of Using Deribit:

• The platform ensures high security with features like two-factor authentication (2FA), SSL encryption, and the use of cold storage.
• Spot trading on Deribit comes without any fees, and the platform offers competitive rates for other trading activities.
• Traders have the option to use over 41 different currencies for deposits.
• Deribit is known for its high liquidity and trading volume, making it an attractive option for options traders.
• The exchange maintains a 1:1 reserve for all customer digital assets and regularly shares transparency reports.

Challenges Faced by Deribit:

• Lack of regulation might pose future legal challenges or result in sanctions against Deribit.
• The platform has a limited selection of altcoins for trading, focusing primarily on Bitcoin and Ethereum.

5. Gate.io Options

Gate.io stands out in the crowded crypto exchange landscape by offering a wide range of trading products, including spot trading, margin trading, futures, perpetual contracts, ETFs, and options. It is particularly notable for its provision of European options contracts with a cash settlement. This means traders holding these options can settle their positions in cash rather than dealing with the actual transfer of the underlying asset, essentially settling the difference between the strike price and the current market price.

The platform prides itself on being highly accessible and user-friendly, supporting a plethora of languages, currencies, and payment methods to cater to a global audience of traders with varied preferences and needs.

Trading Fees and Leverage:

• Options Trading Fees: Gate.io charges a 0.04% handling fee
• Maximum Leverage: The platform allows for up to 100x leverage.
• Supported Options Assets: Options trading is available exclusively for Bitcoin.

Advantages of Using Gate.io:

• Users can explore and interact with decentralized wallets, perform cross-chain swapping, trade digital assets, use a multi-chain NFT marketplace, and access various DApps.
• Offers trading and investment opportunities in more than 1700 digital assets and stablecoins on the spot market.
• Employs a high-level security framework, including the use of cold storage for asset protection and two-factor authentication (2FA) for enhanced account security.

Challenges Faced by Gate.io:

• The platform is not available in certain areas, including the United States, Canada, Japan, and others, limiting access for potential users in these regions.
• Direct withdrawals of fiat currencies to a bank account are not supported, potentially complicating the process for users looking to convert their digital assets into traditional money.

6. Delta Exchanges Options

Delta Exchange focuses on trading cryptocurrency derivatives and options as a digital platform, notably offering options for Bitcoin (BTC) and Ethereum (ETH) with expiry times ranging from daily to weekly. These options are of the European type, which means traders can only exercise them at their expiry date. Traders can settle their options in either USDT, BTC, or ETH, depending on the specifics of their contract.

For those new to options trading or preferring a more straightforward approach, Delta Exchange introduces “easy options.” These are basic options contracts where the trader simply bets on whether the price of the underlying asset will rise or fall. Such options come with fixed payouts and expiries, making them an ideal starting point for beginners. Delta Exchange is reputed for having very narrow spreads in options trading, claiming the spreads for BTC and ETH options are under 2 basis points, and offers leverage of up to 100x. Additionally, Delta Exchange equips traders with a strategy builder tool.

Trading Fees and Leverage:

• Options Trading Fees: A nominal 0.03% for both maker and taker fees
• Maximum Leverage: Opportunities up to 100x
• Supported Options Assets: Options trading is available exclusively for Bitcoin and Ethereum.

Advantages of Using Delta Exchange:

• Detailed and intuitive dashboard, which displays daily gains, losses, and the performance of various trading strategies and positions.
• It also emphasizes security, employing cold storage, multi-signature wallets, and robust encryption to safeguard user funds and data. Beyond BTC and ETH, the platform offers perpetual contract trading for over 50 other cryptocurrencies.

Challenges Faced by Delta Exchange:

• It only supports six trading pairs for spot trading.
• It lacks several advanced trading features found on other platforms, such as margin trading, leveraged tokens, bots, and copy trading.

How To Trade Crypto Options?

Trading options in the cryptocurrency market involves a series of steps. Here’s a simplified overview:

1. Selecting a Trading Platform: Begin by choosing an application or platform that facilitates crypto options trading. Furthermore, Some of the well-regarded platforms include OKX, Bybit, Binance, Deribit, and Delta Exchange.
2. Setting Up Your Account: Once you’ve chosen a platform, you’ll need to create an account. This process generally requires you to provide some personal details, go through a Know Your Customer (KYC) verification, and implement security features such as two-factor authentication for added safety.
3. Depositing Funds: Before you can start trading, you’ll need to deposit funds in your account. Platforms typically support deposits in either cryptocurrency or fiat money. It’s important to follow the instructions provided by your chosen platform to make a deposit.
4. Placing a Trade: With your account funded, you’re ready to place a trade. You’ll need to choose which cryptocurrency you want to trade, decide between a call or put option, set the expiration date and strike price, and determine the quantity of your trade. Make sure to review all the details carefully before finalizing your trade.
5. Using Advanced Orders: To manage risk, consider setting stop-loss orders. These can help limit potential losses. It’s also wise to diversify your investments to avoid putting more money at risk than you can afford to lose.
6. Managing Your Trades: Keep an eye on your trades and the market. Depending on how the market moves and your own strategy, you might want to adjust or close your positions before they expire.

How Risky Are Crypto Options?

Trading crypto options can be very dangerous for several reasons:

• High Volatility: Cryptocurrencies are known for their rapid price changes. This volatility can lead to large gains or losses in a very short amount of time.
• Expiration Dates: Options contracts are bound by time. If the market does not move as anticipated before the option’s expiration date, it may become worthless, leading to a loss of the initial investment.
• Risks of Leverage: Using leverage can significantly increase profits, but it also raises the risk of losses.
• Regulatory Concerns: The crypto options market often operates with less regulatory oversight than traditional financial markets. This could increase the risk of fraud or market manipulation.
• Total Investment Loss: In options trading, there’s a real risk of losing the entire investment, particularly if traders do not use risk management tools like stop-loss orders effectively.

Why Trade Crypto Options?

Trading crypto options provides a range of methods for risk management and prediction. Here are some reasons traders may decide to participate in this market:

• Price Speculation: With the help of options, traders may make leveraged forecasts about how much cryptocurrencies like Bitcoin or Ethereum will cost in the future. Purchasing a call option, for instance, allows the buyer to copy the asset’s price movement without having to fully invest in the asset by offering the possibility of enhanced returns if the asset’s price rises. But there’s a catch: if the market moves badly leverage can increase losses.
• Getting Passive Income: Traders can generate passive income by selling options and receiving a premium. Selling covered calls is one strategy that allows sellers to make premiums regardless of the direction of the market and provides a reliable source of income.
• Hedging: Purchasing put options can act as protection against future price falls for investors with a diversified portfolio and a long-term appreciation view. Furthermore, This strategy offers a safety net against unfavorable market movements, much like buying insurance for the portfolio.

Tips For Choosing Crypto Options Trading Platforms

When you’re in the market for a crypto options trading platform, it’s easy to get caught up comparing trading fees. However, opting for the platform with the lowest fees might not always serve your best interests. Here’s what else you should keep in mind:

• Variety of Options Available: Crypto options platforms vary in the range of assets they offer. While Bitcoin (BTC) and Ethereum (ETH) are commonly supported, options for trading other cryptocurrencies might be limited.
• Fee Structure: Trading incurs costs, and these can vary widely between platforms. Apart from transaction fees, some platforms may also impose fees for exercising options, liquidation, and other operations. It’s crucial to understand the complete fee structure.
• KYC Processes: The Know-Your-Customer (KYC) procedure is a standard compliance measure aimed at preventing fraud and money laundering. Many platforms require traders to undergo KYC verification, submitting documents to prove their identity before they can start trading.
• Payment Methods: The flexibility in funding your account can be a critical factor. While some platforms are crypto-only, others allow deposits in fiat currencies as well. Considering the potential costs associated with currency conversion and blockchain fees is important.
• API and Software Support: For those looking to automate their trading strategies, the availability and quality of API integration can be a deciding factor. Furthermore, Platforms vary in their support for automated trading, which can be a significant advantage for more technical traders.
• Customer Service: The quality of customer support can greatly influence your trading experience, especially when a large amount of money is at stake. The platform’s customer service team can make a big difference, especially in resolving urgent issues.

By taking into account these factors, you’ll be in a better position to choose a crypto options trading platform that aligns with your trading preferences and needs.

How Catax Can Help

The best cryptocurrency tax software in India, Catax, is a valuable tool for options traders since it makes the complex taxing of cryptocurrencies easier. Catax ensures easy tracking, computing, and reporting of all your transactions according to tax laws. Whether you use call options to trade on price increases or put options to protect your portfolio against price drops.

Imagine not having to worry about the proper tax implications of your trading techniques or manually sort through every deal. Catax provides a full solution that meets the needs of people, professionals, and organizations by automating this process. Catax offers multiple pricing models, including free and premium plans, to meet a range of demands and trading volumes, from the beginner to the professional.

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FAQs on Best Crypto Options Trading Platforms in 2024