Options used to be a sophisticated category of asset very few investors dared to touch in the past. Times have changed. More and more people are starting to realize how options are integral to the long-term performance of a portfolio. They have made their way to the crypto market too, thanks to easy-to-use DeFi derivative platforms like Oddz. We have been burning the midnight oil to provide you with the most intuitive options trading experience.

And, we are sure that we have added value to your crypto portfolio. If not, then we have you covered with this article, as we are set to discuss how options, particularly for altcoins, can give a kick to your crypto portfolio. 

Don’t miss it this time. Blz sers..

Hedge against market volatility

Options are a great way to ‘insure’ your volatile crypto assets. They can minimize your losses when used right. In fact, many institutional investors buy options as a risk reduction strategy. 

Here is an example to help you better understand how it works.

You have 100 XYZ tokens in your hand. You bought them for $20 each. However, you are afraid the price will go down in the next few months. But you don’t want to sell them just yet. Instead, you purchase put options by paying a few dollars in premium. Now, if the market dumps as you expected then you are still profitable as you have purchased put options.

This way you can hedge against your spot positions with options. The benefit here is that you get limited downside (limited to the premium paid) and low cost investments (paying only premium amount).  

Lower barriers to entry

Options have lower capital requirements. With options, you enter a position similar to spot, spending very little. Here, too, an example will come in handy. 

Let’s say you want to purchase 100 XYZ tokens. They cost $50 each now. You are optimistic that the price will go up in 30 days. However, you don’t have $5000 with you right now. So, you purchase XYZ call options at $1 each. The contract gives you the right to buy XYZ tokens at $50 each after 30 days. And they bring down your initial investment from $5000 to $100. 

Limited downside risk

As we explained in the first example, options can mitigate your loss when the market is down. A put option guarantees you a future selling price regardless of how the price changes. If you are afraid your altcoin price is going to go down in a few weeks or months, but you are not ready to give up on them yet, options can be a lifesaver. They allow you to go long or short with limited downside risk. 

The UpOnly Potential

While the downside is obviously limited, the upside is Uponly. There’s no cap to what amount of profits you can earn on the upside of your trade. Moreover, options are versatile. With the right set of strategies and research, they can make you profit regardless of where the market is headed. 

Don't believe us? Learn from our Oddz Academy sers…

Altcoins and Options: The Best Combo You Need

Unlike any other derivatives, options give you a right rather than an obligation to purchase the asset at a given price on a given date. They help you diversify your portfolio with minimal risks. In case the price moves contrary to your anticipation, you only lose the premium amount paid in options. But you get to take home the new profit accrued by the underlying asset. 

And, with this beauty of options, if you have Altcoins merged, then you have the best of all DeFi/crypto. To date, only few know the true potential of DeFi options and we are one of them building for you. Our goal has been to provide an immersive options trading experience to our users and we have been achieving those milestones. 

However, if you’re new to derivatives trading, you may be a little intimidated by the complex concepts involved. Oddz Finance will be a great place to start your journey. We offer multi-chain derivatives on a wide range of altcoins from a user-friendly interface. Oddz Academy will further help you conquer the steep learning curve. 

About Oddz

Oddz is a trustless on-chain derivatives trading platform that expedites the execution of call and put options contracts, conditional trades, and futures. It allows the creation, maintenance, execution, and settlement of trustless option contracts, conditional tokens agreements, and futures contracts in a fast, secure, and flexible manner.

It employs the synergies of Ethereum, Binance Smart Chain, Polkadot, Polygon, Elrond Network and Chromia to unleash the potential of a decentralized derivatives market. It focuses on building solutions that can propel the DeFi ecosystem by simplifying derivatives trading and enhancing the user experience.

Instagram | Telegram Chat | Telegram Announcements | Twitter | Website

**
**