Top Options Trading Platforms Compared
We have created a user-friendly table that presents an in-depth and high-level summary of the primary attributes of our most highly-rated options trading platforms globally. This is to offer a quick, but complete understanding of the worldwide crypto options market.
Bybit is our most recommended platform for those interested in trading cryptocurrency options. Established in 2018, it is a specialized exchange that offers futures and options trading. The platform is well-regarded and has a wide variety of coins available for margin trading. While it also offers spot market purchases of cryptocurrencies, Bybit is primarily focused on options and futures contracts.
Notable features of Bybit include European-style USDC-margined contracts for BTC, ETH, and SOL, as well as portfolio margin maintenance that reduces the margin required for multiple positions. The platform also offers industry-leading fees for options contracts at 0.01% Maker and 0.06% take fee rates respectively.
Deribit is a crypto derivatives exchange that was launched in 2015, aimed primarily at professional options traders and institutional investors. It is the largest crypto options platform in the world by volume, boasting over $300m in daily trading activity. Deribit offers European-style coin-margined contracts for BTC and ETH, with portfolio margin maintenance available to reduce the margin required for multiple positions. Options contracts on Deribit have 10x leverage available, with fees starting from 0.03%.
Deribit provides access to the Bitcoin and Ethereum options market with professional-grade speed and security, making it an efficient and comprehensive platform. The platform offers daily, weekly, monthly, and yearly options contracts, allowing for a range of trading strategies to be implemented. Contracts on Deribit are coin-margined, meaning traders must deposit BTC or ETH to open positions. If users prefer to use USDC or USDT for funding, we recommend Bybit as the best alternative.
Binance is a leading cryptocurrency exchange that has expanded beyond spot markets with the introduction of the Binance Options trading platform. Binance offers both American and European-style USDT-margined contracts for BTC, ETH, and BNB, with some of the lowest transaction fees in the market starting at 0.02%.
Binance's options trading platform is familiar and potentially advantageous to existing Binance users, but it is still applicable to those who have more experience outside of the Binance ecosystem and institutional investors. All collateral requirements and positions on Binance are settled using USDT, and no margin requirements need to be met.
OKX, a cryptocurrency exchange that has been around since 2016, is one of the top crypto options platforms for beginners thanks to its slick and easy user interface. It offers European-style coin-margined options for Bitcoin, Ethereum, and Solana with with contract expiration dates ranging from daily to bi-quarterly. OKX uses a maker/taker-style system for option fees, with taker fees starting at 0.03%, and an additional 0.02% exercise fee applies to exercised contracts. All margin and settlement requirements are completed in the corresponding digital asset.
An important factor to consider when using OKX for options is its low liquidity. The options on OKX typically trade around $1 million in daily volume, making it nearly impossible for high-net-worth and sophisticated investors to use the platform. This is why we recommend OKX primarily for beginner traders.
5. Delta Exchange
Delta Exchange is a popular no-KYC alternative to trade cryptocurrency options and other derivatives contracts. This means that users can create an account and start trading without providing any personal or company verification documentation. The platform is well-regarded in the space, but is limited in terms of liquidity with less than $1 million in volume traded on their options contracts.
Delta only currently offers BTC and ETH Options with European-style coin-margined contracts. Delta Exchange is ideal for beginner traders, as its user interface is intuitive and straightforward. Options transactions on Delta have a 0.03% maker fee and 0.06 take fee structure, with no exercise fees applied to contracts that are exercised before the expiration date. All margin requirements are completed in the corresponding digital asset.
American-Style Crypto Options vs European Options
American-style options and European-style options are two different types of derivatives contracts in crypto and traditional markets. While American-style options can be exercised at any time before the expiration date, European-style options can only be exercised on the expiration date itself.
Is Trading Crypto Options Safe?
Trading crypto options can involve risks like any other investment or trading activity. Options trading can be complex, and the price of the underlying asset can be volatile, which can lead to sudden losses. However, with proper risk management strategies and due diligence, trading crypto options can be a safe and potentially profitable way to diversify a portfolio.
It is essential to understand the risks involved and only trade with funds that you can afford to lose. Additionally, it is recommended to choose reputable options platforms with proper security measures and a track record of transparency and reliability.
In conclusion, options trading can be an effective way for traders to hedge their positions and access leverage in the rapidly evolving cryptocurrency market. The top five crypto options platforms for 2023, as outlined in this guide, are Bybit, Deribit, Binance, OKX, and Delta Exchange, each with their unique features and strengths.
It is crucial to understand the risks involved in options trading, and traders should only use funds they can afford to lose. By choosing reputable options platforms with proper security measures and a track record of transparency and reliability, traders can mitigate risks and potentially profit from the cryptocurrency market's volatility.