What is Bitcoin Option Trading

What is Bitcoin Option Trading

What is Bitcoin Option Trading?

Bitcoin Option trading is essentially similar to CFD trading. In Option trading, you either buy a Call or Put, which are both positions in the market. If you were to buy a Call option, that would imply that you think the price will increase. And if you were to buy a Put option, it would imply that you think the price will decrease. Now, every position that you take is like a bet. If you buy a Call on a stock that is trading at $50 right now, you would make a profit if it increases above $50 and a loss if it decreases. The idea is that you’d bet on where the price of the stock would move and wait until the expiration date. The ‘expiration date’ of a trade is essentially a time when the trade will be finished. At the this time, the stock price will determine whether you made a profit or loss. This is quite a rudimentary explanation of Bitcoin Option trading, you can check out https://www.youtube.com/watch?v=MiybniIIvx0&t=62sthis video by Sky View Trading

It’s similar to CFD trading in terms of the idea that you bet on the future prices but the trading process is quite different.

What’s the best place to trade Bitcoin options?

Bitcoin Option trading is often possible on trading platforms that offer contracts for differences. In this article, we’re gonna discuss some of the best platforms available on the market today and what separates them from the rest. This article is going to be split into a few parts which are quite relevant to the average trader as well as beginners.

Plus500 is the world’s leading trading platform for financial instruments like commodities, stock and market indices. Options trading simply allows you speculate or ‘bet’ on the future movement of price of the financial stock of major companies or forex.

Similarly, eToro is the world’s premier social trading platform, it provides free trial accounts, low fees and fast withdrawal speeds! eToro is an options trading website founded in Tel Aviv, Israel in 2006 by two brothers as a website for social exchange between traders. This however, grew into an idea that they could create a trading website and pair the social aspect, making it a sort of Facebook for traders.

Deposits and Withdrawals

One of the best features of Plus500 is the $25 bonus awarded to people who sign up and verify themselves; as it allows even the most beginner traders to experience what the world of bitcoin option trading is. For seasoned traders, one can make a deposit on the website using major credit cards, PayPal or wire transfers.

Plus500 currently does not accept any cryptocurrency however there have been positive reinforcements about the company adopting a cryptocurrency payment method as well. The website has no deposit fees, that is that if you deposit $100 dollars into your account, you will have $100 to trade with and start speculating.

The withdrawal process is simple, imagine you wake up tomorrow realizing your last few trades made you a few thousand dollars. Well, you only have to go through a verification process using your ID, after which you will be able to receive your profits.

You can deposit money into eToro when you create your account however it varies from region, it can range from $50-$1000 minimum first time deposit. Therefore, make sure to check what the minimum deposits are for your region on the website.

The payment options available are Visa, Mastercard, wire transfers and PayPal so it has all of the different methods you could use. When paying with credit cards, the company uses an SSL technology to ensure safety of your credit cards and your account.

The withdrawal process is quite simple also, since the website provides withdrawal through all of these payment channels. However, you have to be verified on the website, which is a quick process, after which you can withdraw your balance minus the margin used.

The minimum withdrawal is $20, which is quite low!


Security is at the heart of the financial markets, therefore Plus500 makes no compromise in the verification process. Before an account can be opened, Plus500 demands national identification depending on your jurisdiction; some require it and some do not.

That means that you might be able to verify yourself electronically or provide national identification and proof of residence. In special cases, Plus500 might ask for proof of origins of your funds, in form of a copy of the credit card. This is all that is required of users to begin their option trading experience!

The eToro platform doesn’t share your personal information with the people you choose to communicate with over the messenger. It only shares the trading activity that you carry out on the platform, this can let you remain anonymous and still be followed by visitors on the website. However, if you want your trades to not be published, you can change that in the settings and none of your trades will be shown. Although it maintains anonymity, it prevents the possibility of people copying your trades; which gives you a second income. Therefore people opting for anonymity lose out on a second income on the website.

Innovative Features

The new Plus500 website is intuitive and easy to use, and is one of the few companies that provides an Apple Watch app as well as iOS and Android. For brokers who want to reduce their risk, Plus500 provides a plethora of risk-management tools such as guaranteed stop loss, guaranteed limit order, price alerts and trailing stops.

These risk management tool benefits the seasoned broker as well as the beginner trader, it helps to mitigate and minimize the losses that you could incur in real trading. Therefore, with an increased safety and ease of use, the Plus500 platform is one of the best in the market.

The Plus500 website has a free sign-up bonus of $25 which can be used for traders who want to experience the world of trading without making any commitments. What’s better is that this free account can be used indefinitely, unlike other trading platforms which require “pro” accounts with deposits.

The platform is well designed, and has great features available! Whilst using the website, it’s pretty easy to follow your traders, communicate with them and learn using the program. eToro has really gone out of its way to make sure beginners have the right start on the website, and can slowly start trading on their own speculations. Since any trading is pretty tough to understand by learning yourself, the eToro platform makes it easier for you.

Whilst writing this article, I started looking into the educational programs that they offer. The company offers live webinars on different subjects that anyone can watch and also eCourses on all the different types of trades available on the website. If you’re still not satisfied, it also has trading videos that you can watch if you come across an issue when using the website.

Conclusion on Bitcoin Option Trading

Overall the Plus500 platform is one of the simplest and most powerful trading website, the strong emphasis that plus500 has placed on being open to everybody is unparalleled. The platform can be used by anybody to experience the world of Bitcoin option trading and get introduced to a new industry in the financial markets.

The eToro website is quite a new and innovative idea; to mix the community of a social network to the complexity of Bitoin option trading. This mix allows very basic users to master the platform with the help of the education programs available on the website.

For us at WikiCrypto, Plus500 and eToro are the best platforms that provide Bitcoin option trading right now.


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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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