Bitcoin Forum

I'm currently trading options on btc, what do you guys think about options trading? Any suggestions?

Have you even tried trading on spot exchanges and actually end up doing good consistently? If not, you're probably not going to do great with options.

I have not done spot trading, I studied with my uncle when he taught me directly is options trading.

Have you tried paper trading? There are many sites you can use to try it out.

Have you done options trading before/tested yourself? There can be some nuances to trading bitcoin in some ways but it is similar to other markets.

My suggestion would be to take profits as soon as they appear if you fall down this rabbit hole.  My main piece of advice though would be not to do it.  Options trading makes the options house money and those that participate lose a great deal of their speculative investment on a whole.  Sure, you can make a ton of money, but it can disappear in an instant.  Messing with these types of markets is like gambling in Vegas...  Somebody has to pay for all those lights... 

I think when you're investing, it's best to do things that aren't providing income for companies to pay employees and provide health insurance, etc (see GBTC vs actual BTC)...  Buying spot BTC provides a small one time infusion of fees for the exchange, but from then on it doesn't cost you a thing to hold your coins.  Far different from options or managed funds.  There are so many people being supported by the financial industry, I think participating in markets without vehicles built for financially supporting market makers is an easy win.  No need to play games.

Yea.. jumping directly to options trading is like immediately applying for a chief executive position without any prior company experience. You're likely to set yourself into failure.

Its advisable never jump with huge capital in trading if you are new to trading. New comers must try techniques like paper trading that have zero financial risk involved. You can easily find free simulator software's that lets you do trading without investing single dollar. If you wanna start trading with real cash then come with money that you can afford to lose. 

My bad, that's like the peak of trading which for some peeps to that has have done crypto tradi g professionally and not for you that has just started... If you try paper trading first just to speeden your competency, then you can go ahead later to option trading ( that's way too big for a starter). I'm sure your uncle must have told you this already, if not, then he forgot to do so. I know many peeps are making it out through that same route but they're also ready to hear the pains if the loss if it comes

Options are not really for beginners, spot trading aka traditional buy and sell is the place where you have to start where you will gain experience and workout your own strategies which will encourage you to go to the next level but never forget that risk involved in other trading than spot trading will be higher and also being consistent is not really possible there.

Option trading is a difficult matter.
I would say that a prerequisite for option trading is having a good familiarity with Spot (linear) trading.

If you want to start studying options trading I suggest you to start reading this thread of mine:

Everything you wanted to know about BTC options but were afraid to ask! (https://bitcointalk.org/index.php?topic=5214418)

Bitcoin options are still relatively illiquid and premiums are quite expensive. This is a report written last year, so things may have moved on a bit but it discusses the costs and choices one can make to achieve a similar goal to trading options. Bitcoin/Eth Options research report. (https://panxora.io/wp-content/uploads/2021/01/Voltility_profile_of_Bitcoin_25.01.2021-1.pdf)

This is a pretty neat report. But I think it is a little old. Do you think you can find a more updated version? Or update that very same report? Just add some more report, so that more users can draw insightful information.

Anything that has advantage also have disadvantage, I will advise you not to put too much money since you are a beginner, many beginners dive into option trade because margin requirement is low and the profit ratio is very high,but they didn't think that if their trade should go right and it goes wrong the loss will be huge also.

What kind of trading do you prefer?. In trading, we have spot trading and futures trading. In the spot, you are willing to hold your assets for the long term. In future, you make a short trade depending on the time frame, 1 hr, 4 hrs, 1 day, etc. Every time you commit a trade don't become greedy or too much handle by your emotions always stick to the trading plan and set a TP and SL. I guess this topic must related to the Trading discussion.

Future trading can be viable also for longer trades. There are perpetual futures, or you can roll your position on longer future.
But you are right about the rest of your message: don’t fall in love with your position and be ready to take action when you touch a SL (Stop Loss), being the most important one.

I suggest starting the basic first and that is to know spot trading first before stepping up into OPTIONs trading. You will realize somehow how difficult it was upon trying options trading.

Don't make yourself think that options trading will instantly give you a profit. No, it wasn't that way, it never means that but the possibility will make you lose in the end. I'm not going to stop your plan but have to be sure that you had already aware of what you are trying to do, remember that trading is risky and much more if you choose Options Trading.

Spot trading or futures trading? We have two options to make a trade spots is just a buying low and selling high works in futures trading predicting the market last price or current price to take profit it has designated preferences and purpose if you gonna do for a holding only its a spot trade and tooks over a weeks or months to hold in futures just an instant trade that give you a profit immediately of course the higher it risk.