What is the difference between Bitcoin options and bitcoin futures?
Can you please explain to me the fundamental differences between Bitcoin options and Bitcoin futures? I'm curious about how they differ in terms of their trading mechanisms, risk exposure, and potential returns. Also, could you elaborate on the unique advantages and drawbacks of each instrument for investors? Understanding these nuances will help me make more informed decisions when navigating the cryptocurrency markets.
What are bitcoin options & spot trading?
Could you elaborate on the concept of Bitcoin options and spot trading for the less financially inclined? Bitcoin options, I understand, involve the right to buy or sell Bitcoin at a predetermined price and date in the future, but how does this differ from spot trading? Spot trading, on the other hand, seems to be the immediate exchange of Bitcoin for its current market value. Are there any specific risks or benefits associated with each? For those interested in investing in Bitcoin, how do they decide which method is more suitable for their needs? Your insight would be greatly appreciated.