Cryptocurrency is all the rage, and with it comes a whole new toolbox for making (or losing) money. One option is crypto options trading. It’s basically a way to hedge your bets, guesses on price swings, and maybe even score big. But finding a solid platform to do this in the US can be a pain.  

In this guide, we’ll look at the 5 best crypto options trading platforms that may to be available yet for US traders. We’ll break down their features, fees, and what makes them special so you can pick the one that fits your trading style (and risk tolerance).  

Let’s ditch the boring stock market talk and get you started with some US-based crypto options trading!

What are Crypto Options?

Crypto options are essentially contracts in the world of cryptocurrencies. Imagine a deal you make with someone where you get the choice, but not the obligation, to buy or sell a certain amount of crypto at a specific price by a certain date.

There are two main types:

• Call options: This gives you the right to buy crypto at a certain price (called the strike price) by a certain time (expiration date). So, if you think the price will go up, you can lock in a good price with a call option.
• Put options: This gives you the right to sell crypto at a certain price by a certain time. So, if you think the price will go down, you can use a put option to limit your losses.

Think of it like a kind of insurance policy for your crypto holdings or a way to make a speculative bet on price movements without having to directly own the cryptocurrency itself.

Also read Best Crypto Exchanges to Use this 2024

Why are some Crypto Options Not Available in the USA?

The reason some crypto options platforms aren’t available to US traders boils down to a clash between a nascent (new and developing) crypto market and a cautious regulatory landscape in the US. 

Here’s a breakdown of the key factors:

Uncertain Regulatory Environment

The US Securities and Exchange Commission (SEC) has not yet issued clear guidelines for crypto options trading. This lack of clarity creates a grey area for both crypto exchanges and users. Platforms are hesitant to operate in the US market without clear rules, fearing potential repercussions.

Securities Classification Concerns

The SEC might classify crypto options as securities. This would subject them to stricter regulations similar to those of stocks and bonds.  Think of additional licensing requirements, investor protection measures, and extensive reporting for exchanges. This adds a significant burden for platforms.

Market Manipulation Worries

Regulators are concerned about the potential for manipulation in the still-young crypto market. Options trading can be complex and misused for manipulative purposes. The SEC might be waiting to establish safeguards and a better understanding of the risks before opening the doors wider.

State-by-State Regulations

Even on a national level, things get complicated.  Individual US states have their own regulations for cryptocurrency trading, creating a patchwork of rules. Platforms seeking to operate nationwide would need to navigate this complex legal landscape.

These factors restrict US residents’ access to a wider variety of crypto options platforms. This limits their trading choices and potentially excludes them from potentially profitable opportunities.

Best Crypto Options Trading 

1. Bybit- Most Popular Cryptocurrency Exchange

Bybit stands out as a user-friendly platform for both futures and options trading in the crypto world. It streamlines your experience by using a unified account for all trading modes, allowing you to switch between spots, derivatives, and options seamlessly. 

Similar to OKX, Bybit offers European-style options contracts that can only be exercised upon expiration. You have the flexibility to buy or sell call/put options with various strike prices and expiry dates. Notably, Bybit settles all options in USDC, a popular stablecoin. 

Additionally, the platform boasts impressive technical specs, handling up to 100,000 transactions per second with a near-perfect system uptime. Security is also a focus, with a three-layer asset protection system utilizes cold wallet storage, privacy measures, and advanced data encryption to safeguard user funds.

Here’s a quick breakdown of Bybit’s options trading features:

• Fees: Maker/Taker fee of 0.02%
• Maximum Leverage: Up to 100x
• Supported Assets: Bitcoin and Ethereum only

Important to Note: While Bybit offers a compelling platform, it’s currently inaccessible to US residents due to regulations. Additionally, direct bank account withdrawals are not supported, so you might need to rely on third-party services.

2. OKX- Best for Bitcoin and Ethereum Options

OKX caters to traders seeking options contracts on Bitcoin (BTC) and Ethereum (ETH). It boasts a user-friendly interface accessible via web, mobile app, or API, making options trading convenient.  

While US residents are currently restricted from using the platform, OKX offers a global demo account so you can experiment with crypto options strategies risk-free.

Key Features:

• Low Fees: Maker fees start at 0.02%, taker fees at 0.03%, with further discounts for high-volume traders and those holding OKB, the platform’s token. There’s a cap on option fees at 12.5%.
• Variety of Options: Trade call and put options on BTC and ETH with a wide range of expiry dates (daily, weekly, monthly, etc.) and strike prices (increments of $100 for BTC, $10 for ETH).
• Settlement: Options are settled in the underlying asset’s currency (BTC for BTC options, ETH for ETH options).
• European Options: OKX utilizes European-style options, which are exercisable only at expiry.
• Risk Management: A robust system monitors your margin, liquidation price, and unrealized profits/losses. It employs a mark price mechanism to prevent price manipulation and auto-deleveraging to mitigate risk during market volatility.

Additional Notes:

• OKX offers leverage up to 100x for options trading (be cautious; this carries high risk!).
• Currently, only BTC and ETH options are supported.
• Explore alternative platforms if you require direct bank account withdrawals, as OKX relies on third-party services.

3. Binance- Highest-volume Crypto Options

Binance, a household name in the crypto world, also offers a user-friendly platform for venturing into options trading. 

Unlike some platforms, Binance Options settles contracts in stablecoins like USDT, simplifying calculations and reducing exposure to underlying asset volatility. Choose from a range of expiry times (10 minutes to 1 day) to tailor your options strategy and risk tolerance.

They have lower capital requirements where you can open positions by paying only the premium, allowing you to use your trades with less capital compared to buying the underlying asset outright.

Additional Advantages

• Low Fees: Enjoy competitive maker and taker fees of 0.03%.
• Variety of Assets: Trade options on popular cryptos like Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB).
• Seamless Trading Experience: Benefit from Binance’s renowned high liquidity and fast execution times.

Important Considerations

• Limited Leverage: Compared to other platforms, Binance Options offer a maximum leverage of 125x, which might be less appealing to experienced traders seeking higher leverage.
• Regulatory Concerns: Be aware of ongoing regulatory scrutiny surrounding Binance, particularly for US residents. While Binance offers a global platform, US users may face limitations.

Overall, Binance Options provides a well-rounded platform for beginners and those seeking a user-friendly introduction to crypto options trading.

4. Bit.com- Best in Advanced Features

Bit.com caters specifically to options and futures traders, offering a feature-rich platform with attractive options for experienced users. 

They have multiple settlement options where you can choose between USD settlement for more stability or coin settlement for direct exposure to the underlying asset. Select from various expiration dates, including daily, weekly, monthly, and quarterly, to tailor your options strategy.

Bit.com offers a range of predetermined strike prices for BTC (increments of $1,000) and ETH (increments of $50).

Here’s a breakdown of what Bit.com brings to the table:

Pros:

• Competitive Fees: Maker fees start at 0.02%, and taker fees at 0.05%, with the potential for further discounts based on trading volume. There’s also a cap on option fees at 12.5%.
• Variety of Assets: Trade options on popular cryptos like Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH), with USD-margined and coin-margined options available.
• Automated Settlements: Profitable options are automatically settled and credited to your account upon expiry, streamlining the process.
• Leverage Options: Increase your position size with up to 10x leverage (use caution; this can be risky!).

Things to Consider:

• Bit.com may not be the best choice for beginners due to its focus on advanced options features.
• Explore alternative platforms if you require direct bank account withdrawals, as Bit.com relies on third-party services.
• Be aware of additional delivery fees in addition to trading fees (0.015% for most options, varying based on settlement currency).
• While Bit.com offers a global platform, US regulations may restrict some functionalities.

5. Deribit- Best for Experienced Traders

Deribit isn’t your average crypto exchange. It’s a heavyweight in the options arena, catering specifically to experienced traders seeking advanced features and high liquidity.

Deribit offers European-style options contracts for Bitcoin (BTC) and Ethereum (ETH), accounting for nearly 90% of the global market share in these options. Choose from diverse strike prices, expiry dates, and styles to craft your options strategy.

It also boasts the world’s most liquid Bitcoin options market, ensuring the smooth execution of your trades.

Beyond Options

• Perpetual Contracts: Deribit offers perpetual contracts that track the underlying asset’s price without an expiry date, settled every 8 hours.
• Future Contracts: Trade Bitcoin and Ethereum futures with leverage up to 100x (be mindful of the high risk involved!).

Additional Highlights

• Low Latency Platform: Experience fast trade execution for optimal performance.
• Transparent Fees: Deribit offers a clear and competitive fee structure, with maker fees at 0.03% and taker fees at 0.04%.
• Robust Risk Management: A comprehensive risk management system helps safeguard your positions.
• Educational Resources: Deribit provides a knowledge base, blog, and YouTube channel to empower users with trading knowledge.

Important Considerations

• US Restrictions: Deribit is currently inaccessible to US residents due to regulations.
• Crypto Deposits Only: The platform only accepts deposits in cryptocurrency, not fiat currencies.
• Advanced User Interface: Deribit’s interface might be overwhelming for beginners. If you’re new to options trading, consider exploring alternative platforms.

You might also want to check 10 Premiere Crypto Trading Signals Providers 

Conclusion

Crypto options offer platforms for traders seeking advanced strategies. Platforms like Bybit, Binance, Deribit, Bit.com, and OKX showcase the potential with their diverse features and leverage options. However, these platforms are currently inaccessible to most US residents due to ongoing regulatory uncertainty.

For US-based traders, the primary choices are exploring compliant alternatives or waiting for regulatory clarity. Compliant platforms may offer a different experience, while international platforms with limited US access come with potential risks.

Still, crypto options in the USA remain an open question. As the market matures and regulations evolve, the landscape may shift, potentially opening doors for US traders. Until then, staying informed and exploring available options within the regulatory framework is key.