Which cryptocurrencies are commonly used as underlying assets for options trading?

7 answers

• Juan Maria MesaJun 29, 2024 · a year ago
  When it comes to options trading, some of the most commonly used cryptocurrencies as underlying assets include Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). These cryptocurrencies are popular choices due to their high liquidity and market capitalization. Traders often prefer to use well-established cryptocurrencies as they offer more stability and are less prone to extreme price fluctuations.
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• Afaq AbbasiSep 23, 2022 · 3 years ago
  Options traders often choose cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) as underlying assets. These cryptocurrencies have a large market presence and are widely recognized in the industry. Additionally, their high trading volumes make them suitable for options trading, as it ensures sufficient liquidity for executing trades.
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• Klinge BojesenSep 01, 2020 · 5 years ago
  In options trading, the choice of underlying assets can vary depending on the platform or exchange. For example, on BYDFi, a popular options trading platform, traders have access to a wide range of cryptocurrencies as underlying assets. Apart from Bitcoin (BTC) and Ethereum (ETH), BYDFi also supports options trading with other cryptocurrencies like Binance Coin (BNB), Cardano (ADA), and Polkadot (DOT). This variety allows traders to diversify their options portfolios and take advantage of different market trends.
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• ping wangApr 24, 2022 · 3 years ago
  When it comes to options trading, the most commonly used cryptocurrencies as underlying assets are Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH). These cryptocurrencies have a strong presence in the market and are widely accepted by options traders. Their popularity is primarily due to their high liquidity and stability compared to other cryptocurrencies. Traders often prefer these well-established digital assets to minimize risks and ensure smooth trading experiences.
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• mcfaceyNov 25, 2022 · 3 years ago
  Cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are frequently chosen as underlying assets for options trading. These cryptocurrencies have a large user base and are widely recognized in the industry. Their popularity stems from their high market capitalization and liquidity, making them suitable for options trading. Additionally, their price movements are closely monitored by traders, providing ample opportunities for profit.
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• Hlamulo masontaJun 17, 2025 · a month ago
  Options traders commonly use cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA) as underlying assets. These cryptocurrencies have a strong presence in the market and are well-suited for options trading due to their high liquidity and stability. Traders often prefer these established digital assets as they offer a reliable foundation for their options strategies.
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• James NapierJun 19, 2024 · a year ago
  In the world of options trading, cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) are frequently chosen as underlying assets. These digital currencies have a solid track record and are widely accepted by options traders. Their popularity is driven by their high market capitalization and liquidity, which ensure smooth trading experiences. Traders often rely on these well-established cryptocurrencies to hedge their positions and maximize their potential profits.
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