New to the Binance platform? Do you have the knowledge to trade, but do not know how to use the application? How to invest in Bitcoin Options? Here we explain it to you.
What are the options?
Although these types of financial tools may be new to most of us, the truth is that they have been around for some time in traditional markets.
BTC options are derivative financial instruments, or based on an underlying security. In this case, for example, in the price of Bitcoin. So, they do not actually own the Bitcoin, but you bet on its price.
In addition, the options contract offers the opportunity for the trader to buy or sell the underlying assets at the end of the contract time. This is why it bears the option name.
How to invest in Bitcoin Options in Binance?
The first thing you must have is an account on the Binance futures crypto exchange, called JEX, or alternatively link it to your pre-existing account on Binance.com.
Once created, it is important to validate it with an identity document, a photo, and a biometric scanner that will be carried out only in the mobile phone app. Stressing that the largest exchange in the world, needs the best security measures.
This process is a win win. Since it helps Binance comply with KYC requirements, and at the same time, in case you forget your password, lose access to email, or even a hacking attempt, this data will serve to keep our hodl secure.
After having our account on the Binance Futures platform, we will log in and go to the “Options”. Here, depending on our level of trading we will choose between “Standard” or “Professional”. This time we will go by Standard.
On the left side of our screen we find the different option contracts with which we want to trade. And by clicking on the star symbol we can select only the ones that we want to see on our platform.
This symbol first has the name of the underlying asset, then the date, and then if it’s a Call, Put option and even its strength level, Weak or Strong. In turn, it shows the level of leverage.
On the right side we can see the order book of each option contract in particular. And, on the lower right side, we can see the purchase and sale options, and even the Stop Loss.
Once we have our trading plan, all we have to do is get down to business. We want to express to our readers that this type of trading is one of the riskiest that exists, in turn, it is one of the most lucrative.
So we recommend educating yourself, educating yourself, and gaining some experience first before engaging with the Bitcoin Options market.