Cryptocurrency options trading has grown exponentially in popularity in recent years as both retail and institutional investors look for innovative ways to capitalize on volatility in the crypto markets. However, choosing the right exchange for crypto options is crucial.
This detailed guide reviews the top 5 best crypto options exchanges for 2024 based on security, fees, options availability, user experience and more to help you decide where to start trading crypto options safely and effectively.
Summary of Top 5 Best Crypto Options Exchanges for 2024:
- Bybit – Best Overall Platform for Crypto Options (1400+ options available)
- Deribit – Top Exchange for Institutional Traders (Insured funds up to $25M)
- Binance – Best Alternative for Lots of Options to Trade (80+ coins available)
- OKX – Great Beginner-Friendly Platform (Simple Options mode)
- Robinhood – Newcomer Excelling in the US Market
Bybit Exchange Overview:
Currently dominating the crypto options trading market sphere, Bybit tops our list as the best overall platform. It offers deep liquidity across over 1400 trading pairs, industry-leading security measures and resources to help both novice and professional options traders.
- Fees: Maker fees of 0.02% and taker fees of 0.04% are among the lowest in the space.
- Supported Options: BTC, ETH, SOL anddogecoin options available.
- Insurance Fund: $100M fund protects accounts from potential exchange hacks or black swan events.
- Ease of Use: Sleek mobile and web interface optimized for options analysis tools.
Why We Like It: Bybit’s liquidity, competitive pricing, extensive educational resources and robust security make it the top choice for efficient and profitable crypto options trading in 2024.
Deribit Exchange Overview:
As the longest-standing crypto options exchange, Deribit excels for professional traders seeking advanced tools and the highest levels of insured funds protection.
- Supported Options: Contracts for BTC, ETH and additional altcoins.
- Insurance Fund: $25M actively insured fund with credentialed insurance providers.
- Leverage: Up to 20x leverage available on options contracts.
- Fees: Maker fee of 0.05% and taker fee of 0.15% with a 0.0001 BTC minimum.
Why We Like It: Regarded as the most trusted platform for large institutional investors, Deribit’s insured funds, low fees andcutting-edge analytical tools provide a high bar for security and analysis.
Binance Exchange Overview:
With its expansive selection of tradable coins and some of the industry’s lowest fees, Binance provides an affordable and diverse selection for options trading.
- Supported Options: Over 80 coins including BTC, ETH, AAVE, BNB and more.
- Fees: 0.04% fee for both makers and takers.
- Collateralization: Options use stablecoins like USDT for collateral instead of the underlying asset.
- Regulated Entity: Operates globally under regulatory licenses in multiple jurisdictions.
Why We Like It: Binance’s unbeatable selection of crypto options to trade, competitive pricing and regulated structure make it a suitable lower-cost option for both new and experienced traders.
OKX Exchange Overview:
OKX stands out for ease of navigation and a simplified options onboarding process through its Simple Options mode.
- Supported Options: Bitcoin and Ethereum options available.
- Fees: 0.02% maker fee and 0.04% taker fee.
- Insurance Fund: Provides coverage of up to $400 million for users.
- Simple Options: Beginner-focused mode explains options basics without jargon.
Why We Like It: OKX’s thoughtfully designed onboarding and educational tools pair perfectly with its competitive fees, making it one of the most approachable platforms for newcomers to test out options trading.
Robinhood Exchange Overview:
A well-known stock trading app, Robinhood recently expanded into cryptocurrencies and offers some crypto options pairs.
- Supported Options: Bitcoin and Ethereum options currently available.
- Fees: No trading fees, but options are more expensive than trades.
- Ease of Use: Familiar smartphone interface used by millions of traders.
Why We Like It: Robinhood brings cryptocurrency options to the masses with its extremely easy-to-use platform in the large US market.
How to Purchase Crypto Options:
Now that the top 5 exchanges are reviewed, here are the basic steps to purchase crypto::
- Choose an exchange from our guide like Bybit or Deribit
- Complete registration and KYC requirements
- Deposit funds using bank transfer or crypto
- Locate the options trading markets
- Enter order details and trade options contracts
- Withdraw profits to your bank or wallet
Legality and Taxes:
Cryptocurrency options trading is legal in most countries, though some impose regulations. Always ensure the exchange you use adheres to local rules. As for taxes, crypto gains or losses are typically taxed similarly to other investment income based on your nation’s capital gains tax rates. Reporting requirements also apply.
Conclusion:
In summary, crypto options offer sophisticated investors an innovative way to speculate and hedge risk. By choosing a top-rated, regulated exchange like Bybit, Deribit or Binance, newcomers can feel secure exploring this exciting segment of the cryptocurrency asset class. Always practice risk management and remember that options involve inherent risks beyond spot market trading. With the right platform and strategies, options trading can potentially outperform simple buy-and-hold strategies if implemented responsibly.
FAQs:
What is the best exchange for options trading crypto?
Based on our review, Bybit is currently the best overall platform for cryptocurrency options trading due to its huge selection of options pairs, low fees, insurance fund and resources for all experience levels. However, Deribit is also excellent for institutional traders.
Which platform has the most crypto options available?
Bybit offers the largest number of tradable cryptocurrency options pairs at over 1400. However, Binance provides the most diverse range of underlying coins at over 80, though the numbers of options themselves are fewer.
Can you place options on crypto?
Yes, all of the reviewed exchanges in this guide (Bybit, Deribit, Binance, OKX, FTX) allow traders to place calls and puts on cryptocurrencies like Bitcoin and Ethereum in the form of options contracts.
