The crypto industry is evolving faster than ever and new investment options pertaining to this space are also on the rise. As cryptocurrencies continue to garner attention amidst the economic crisis raging throughout the globe, major cryptocurrency exchange Binance continues to add new trading instruments to its arsenal.

According to Binance’s latest announcement, the exchange has finally launched the highly anticipated Bitcoin (BTC) options trading on its futures trading platform. The April 13 announcement comes a month after the exchange hinted towards the launch of this product.

Bitcoin options are a form of financial derivative that gives you the right, but not the obligation, to buy or sell bitcoin at a specific price – known as the strike price – at a certain date of expiry. Options allow trading on cryptocurrency volatility without ever having to take ownership of the underlying asset by paying a premium that is usually cheaper than buying the crypto itself.

Bitcoin options on Mobile app

The latest offering from Binance is currently only limited to the exchange’s mobile application. The company has stated that its options product allows customers to execute the contract in a much shorter span of time compared to traditional options.

For Binance’s BTC/Tether (USDT) options contracts, traders have to transfer their USDT holdings from their primary wallet to their futures wallet. Users then have the option of choosing anything between 10 minutes to 24 hours as an expiry date. Also, there is also only one strike price, which is equivalent to the contract price on Binance Futures when traders exercise their rights.

Within the announcement, Binance also notes that a fixed value premium must be paid at the start and profits on trades would the sum obtained after the premium is deducted. Hence the exchange cautions:

“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.”

New products from Binance

Binance has been evolving rapidly as the exchange has launched several new products over the past months. In an interview with South China Morning Post, CEO of Binance Changpeng Zhao stated that Binance reinvests roughly 25% of its annual profits into expansions and acquisitions.

On April 1, 2020, Zhao confirmed that the company is set to deploy its own mining pool. By announcing the forthcoming launch of its own mining pool, Binance has followed top exchanges such as OKex and Huobi in dedicating resources to mining ventures.

Furthermore, the exchange recently confirmed the news regarding a deal valued at $400M to acquire crypto data aggregator CoinMarketCap.Prior to this, the platform also launched its crypto debit card that allows the cardholders to pay with Crypto using a fiat gateway. It has been issued with Visa and is accepted by more than 46 million merchants globally.