Cryptocurrencies have revolutionized the way society perceives and trades assets, offering new opportunities for investors and traders alike. While traditional methods of buying and selling digital currencies have gained popularity, the market for crypto trading instruments is continually evolving.
From the emergence of futures contracts to the latest advancements in options trading, platforms are striving to bridge the gaps and provide more comprehensive solutions for traders of all levels.
Unlocking the potential: Understanding crypto options trading
Since the beginning of crypto, the trading volume on exchanges has grown significantly. As with traditional assets, traders are looking for ways to optimize their strategies and maximize returns. Some of the instruments they use include option contracts.
Instead of buying Bitcoin (BTC) on an exchange, which is a simple transaction from one trader to another, crypto options offer a lot more possibilities. With options, traders can speculate on the future direction of the value of an underlying asset. If the expectation is that the asset’s price might rally, then traders can use options to generate returns.
Like futures, options are derivatives. They differ from futures in that a trader can choose not to buy the underlying asset when the option contract expires.
Traders can choose to open either a put or a call option, as well as American or European options. Call options allow traders to buy an asset on the date that the contract expires. Put options, on the other hand, give the trader the option to buy an underlying asset, allowing him to speculate on the future value of a cryptocurrency. In addition, European options must be sold exactly on the predetermined date.
Current shortcomings
The crypto derivatives market, like the spot market, has seen rapid growth in recent years. In 2020, the open interest was around $1.6 billion and currently stands at around $8 billion.
There are several exchanges on which traders can trade with options. How the needs of the average trader are met differs from platform to platform. According to a survey published by BDC Consulting, liquidity and ease of use are among the most important factors to a trader.
Traders pointed these out as the most lacking features on crypto trading platforms. Source: BDC Consulting
Coincall, a soon-to-launch crypto derivatives trading platform, aims to create a hub catering to all traders’ needs and become the Robinhood of crypto trading by offering a user-friendly platform with deep liquidity and the fiat USD as a base currency. Moreover, user funds will be brought under the custody of external companies, offering an additional layer of security.
An experienced team
Coincall employs a talented team of around 60 people who specialize in important areas such as product development, design, engineering, risk control, trading, system maintenance, operations and marketing.
With this diversity of experience, Coincall has the potential to meet the needs of even the most selective users. Moreover, some members of the team have worked at well-known exchanges such as Binance and OKX, as well as at large traditional financial companies and market makers such as JPM, Optiver and UBS. Thanks to this fusion of talent and experience, Coincall can operate at the forefront of the industry, providing quality services and solutions.
At the helm of Coincall is its founding partner Bastion Trading, a Hong Kong-based company founded in 2014 by experienced traders who come from major financial institutions such as JP Morgan and Optiver.
Not just for institutional investors
While trading derivatives can seem complicated, making them seem intended only for large institutional investors, Coincall expects that retail traders can find their way into these instruments as well. That’s why the platform prioritizes user-friendliness in every design area. That way, Coincall should be easy to use for both experienced institutional traders and passionate retail investors. Furthermore, the platform’s low fees and 24/7 customer support will enhance the user experience.
Source: Coincall
Coincall also stated that it “prioritizes security and trust, making it a safe and secure environment for users to trade.” The integration of Copper’s ClearLoop technology that allows end-to-end secure custody and transmission of digital assets can reduce counterparty risks and enhance the security infrastructure. In addition, Coincall also has an all-star risk-control team of experts from both traditional financial institutions and top crypto-native organizations that will be constantly monitoring risks on the platform and taking action when necessary.
Coincall’s launch will take place by the end of June 2023, while the early bird registration is already open. Read more about the crypto derivatives trading platform on its official website and social media channels.
Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain in this sponsored article, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.