TL;DR
Deribit just opened BTC & ETH options that expire 4 days after the election, so investors can safeguard themselves depending on who wins (and with that, pour a little extra cash into crypto in the lead up).
Full Story
Do you use the 7-Eleven app?
Probably not.
But if you did, you might know that you can use it to ‘lock’ fuel prices for 7 days — the idea being, if you think gas is about to get more expensive, you can lock in lower prices ahead of time.
That’s kind of how options trading works.
You purchase the option to buy/sell an asset at a fixed price, at a certain date in the future.
We’re telling you this because Deribit (the world’s largest Bitcoin and Ethereum options exchange) just announced they’d be allowing customers to buy the option to either purchase or sell BTC & ETH, four days after the US election.
Why does that matter?
Cause Biden is seen as anti-crypto, while Trump is seen as pro-crypto — and the market is going to react based on who wins.
So now investors can lower their risk using these options (e.g. if Biden wins, they might want to lock-in the option to sell at a fixed price higher than what might be expected in that situation).
And with those safe-guards in place, it means investors might feel a little more comfortable pouring a little extra cash into crypto in the lead up.
Nice!
In conclusion, with the opening of BTC & ETH options by Deribit just days after the US election, investors have a unique opportunity to safeguard themselves against market uncertainty based on the election outcome. By providing options to either purchase or sell crypto assets, Deribit is giving investors a tool to manage risk and potentially profit from price fluctuations that may occur depending on the election results. This move not only allows investors to secure their positions but also injects more confidence into the crypto market, leading to potential increased investment in the lead up to the election.
For more trending news articles like this, visit DeFi Daily News. Stay informed and stay ahead of the game in the world of decentralized finance!
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