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NewsBTC 2021-08-27 06:59:17

Crypto Options Have Arrived on the Scene: Here’s Why They’re Different

Originally intended as a kind of digital cash for purchasing goods and services without resorting to fiat currency, cryptocurrency nowadays more resembles a commodity. More precisely, each digital asset, from the original Bitcoin to altcoins like Ethereum and Litecoin and even the so-called ‘meme coins’ such as Dogecoin, functions as a commodity in an exchange market characterised by high price volatility. Thanks to the availability of full-featured crypto exchange apps that enable convenient access to the crypto market for an increasing number of individuals around the world, crypto trading is more popular than ever. These new traders are less interested in having cryptocurrency for its own sake than in having their coins appreciate in value and cashing in at a later date. For the majority of crypto traders, crypto’s volatility is the whole point. The dramatic price swings in a relatively short time compared to traditional investment instruments can result in fantastic profits for traders who play their cards right. As the cryptocurrency market increasingly resembles the commodity market, more sophisticated trading tools for cryptocurrency emerge based on the latter. The latest to arrive on the scene are crypto options. Experienced traders will already be familiar with options trading. Options are derivative instruments in which the buyer reserves the right to buy (Call) or sell (Put) the underlying asset at a predeterm...

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