Binance Launches Options to Tap Crypto Gambler

April 13, 2020 4:02 PM UTC

Earlier this month, rumours were pointing towards Binance launching options trading for its mobile app, especially after Binance published a post on Twitter basically saying the same thing.

On April 13, the leading crypto exchange ended all rumours by officially rolling out Bitcoin options on its futures trading platform. The new feature is initially only available on the exchange’s mobile application. Crypto options allow people to bet on movements, often in a short time span. In most cases, the bet is made against the exchange, which essentially acts as the house in a traditional gamble. 

Given crypto’s tendency to attract gamblers, this decision allows Binance to expand into the gambling segment in the visage of offering a financial product.

Binance Still Behind In The Options Trading Space

Binance’s new initiative will allow users to buy or sell assets at a predetermined “strike price.” Binance’s is currently offering BTC/Tether options for trading with fewer entry barriers and less compliance. The exchange is offering the American version of Bitcoin options contracts that will allow investors to begin trading at any time before the expiry date. Furthermore, the exchange new initiative gives more precise time support compared to conventional trading options, ranging from 10 mins to one day.

The exchange further stated:

“There is no guarantee that your options purchase will execute at a profit after the premium has been deducted. Most options purchases will not be profitable, but a minority will be very profitable. Please use at your own discretion.”

Binance has been one of the most popular exchanges among the crypto community for trading. However, the exchange has joined the crypto trading options space very lately. 

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