Summary: Crypto options are one of the fastest-growing derivatives contracts in the digital asset ecosystem. They have become a powerful tool for traders to speculate long or short, and have provided investors an ability to sufficiently hedge the volatility in crypto markets.
Our research has concluded that these are the 5 best crypto options trading platforms based on depth, liquidity, market variety, and overall security.
- Most popular platform for BTC, ETH and SOL options.
- USDC-collateralized crypto options contracts.
- Trusted and regulated platform with over 10 million users.
Top Crypto Options Exchanges
The following is a concise outline of the top 5 cryptocurrency options trading platforms. These succinct overviews aim to assist traders in rapidly comparing essential features and offerings, enabling them to make well-informed choices. We evaluated each platform by considering factors such as available assets, liquidity, options contract diversity, security, regulation, and user experience in our ranking methodology.
Bybit is the unrivaled leader and best platform for crypto options trading, leading the pack with its rapidly evolving trading platform. It offers an unparalleled range of trading products, headlined by the BTC, ETH, and SOL options market with USDC Option Contracts, setting the industry standard.
Bybit shines with its profound liquidity and modest fees, commencing at just 0.01% for both makers and takers. This makes it an optimal choice for traders seeking a smooth and efficient trading experience. Surpassing its competitors like Deribit, Bybit distinguishes itself with superior liquidity, minimal slippage, and tight spreads, delivering an unrivaled crypto options trading experience.
Deribit, ranking as the second-best overall, stands out as the top choice for institutional investors in cryptocurrency options trading. Specializing in Bitcoin and Ethereum options, Deribit consistently sees daily trading volumes over $1 billion for BTC and ETH options. The platform offers a professional trading environment with advanced features like multi-leg strategies, implied volatility charts, and deep liquidity. This setup guarantees tight spreads and low slippage, catering to the needs of sophisticated investors.
Despite slightly higher fees at 0.05%, Deribit's dedication to delivering a seamless trading experience maintains its position as the preferred choice for institutional investors in crypto options trading. Note, however, that Deribit is currently unavailable for US traders.
3. Delta Exchange
As the third-leading platform in the market, Delta Exchange shines as a diversified crypto trading platform that boasts an expansive range of options contracts. Their offerings include esteemed cryptocurrencies such as BTC, ETH, BNB, AVAX, SOL, LINK, MATIC, and XRP. While Delta Exchange sets itself apart by supporting a broader range of options contracts compared to other platforms, potential challenges may arise when trading larger volumes due to lower liquidity. Despite this, it holds a competitive edge with a modest fee structure at 0.2%.
A standout feature of Delta Exchange is its user-friendly approach, which eschews the need for KYC or verification for trading on the platform. This feature, combined with its extensive options offering and competitive fees, solidifies Delta Exchange as the fourth best platform in the crypto options trading landscape.
4. IQ Options
Asserting its position as the fourth-best in the arena, IQ Options is a renowned online broker offering a spectrum of financial instruments, with a noteworthy emphasis on crypto options. This platform facilitates options trading on a curated selection of 10 cryptocurrencies, offering a targeted and streamlined experience for its users.
IQ Options distinguishes itself with its approachable entry requirements, featuring low minimum deposit thresholds. A standout feature is the provision of a free demo account, empowering users to hone their trading strategies before venturing into live trading. The platform also boasts competitive fees, charging a modest rate of 0.1% for options trading. The combination of its versatile crypto options, user-friendly interface, accessible entry requirements, and competitive fees fortifies IQ Options' standing as the fourth-best platform for crypto options trading.
5. HXRO Options (Iconic)
Completing our top five list, HXRO Options presents a distinctive platform enabling traders to engage with the cryptocurrency market through a decentralized exchange. Its focus is on options trading, which are settled in ether, the native currency of the Ethereum blockchain. This innovative approach allows traders to capitalize on price movements without the necessity to purchase or hold the underlying cryptocurrency.
HXRO Options provides an exclusive offering of parimutuel options trading and stands out with its no-KYC or verification requirement, underscoring a user-friendly approach. However, while the platform supports 10 indices, it may offer limited liquidity compared to its more established counterparts.
Best DeFi Options Platform
For those keen on exploring the revolutionary world of on-chain cryptocurrency options trading, the Dopex protocol emerges as the undisputed choice. This protocol, operating on Ethereum, Avalanche, and Arbitrum, creates an efficient and lucrative ecosystem for options trading. Dopex uniquely empowers users to trade options on Ethereum (ETH) while simultaneously engaging in yield farming strategies through their sophisticated vault system. This dual-pronged approach offers users an avenue to optimize their investment strategy and maximize returns.
The innovative crypto option vaults on Dopex stand out in the DeFi space. They provide investors with an opportunity to accumulate premiums from Call or Put purchases, while also earning rewards concurrently. This combination of premium collection and rewards system sets Dopex apart, offering a remarkable and profitable DeFi trading experience.
What are Crypto Options?
Crypto options, also known as cryptocurrency options or digital options, are a type of derivative contract that gives the buyer the right, but not the obligation, to buy or sell an underlying cryptocurrency at a specific price on or before a certain date.
There are two types of options:
- Call Options: These give the holder the right to buy the underlying cryptocurrency at a predetermined price, known as the strike price, before the contract's expiration date.
- Put Options: These give the holder the right to sell the underlying cryptocurrency at the strike price before the expiration date.
Options can be used for a variety of purposes, including hedging risk against potential price drops, speculating on price movements, or taking advantage of market volatility. The flexibility and leveraged nature of options trading can make it a powerful tool in the hands of a knowledgeable trader, but it also comes with significant risk and complexity.
In conclusion, the expanding crypto options market offers a range of platforms for traders. Our analysis suggests that Bybit, Deribit, Delta Exchange, IQ Options, and HXRO Options lead in terms of depth, liquidity, variety, and security. Bybit leads with superior liquidity and minimal fees, Deribit is ideal for institutional investors, Delta Exchange offers diverse contracts, IQ Options appeals to crypto and traditional markets, and HXRO offers unique on-chain trading.
For DeFi enthusiasts, Dopex protocol combines options trading with yield farming. As the crypto options landscape evolves, these platforms will be key in shaping its future, though traders should consider their investment strategies due to associated risks.