Avalon Labs (AVL) revolutionizes Bitcoin finance with BTC-backed stablecoin lending, CeDeFi & DeFi solutions. Borrow, stake & earn with BTC-based assets.

 (BTC)’s financial ecosystem, known as 

, has experienced significant growth over the past few years, with a number of sidechains, rollup platforms and cross-chain applications helping users leverage their BTC funds for 

 (DeFi) operations. One of the newer BTCFi solutions on the market is Avalon Labs, a multi-chain platform focused on Bitcoin-backed 

Avalon lets users borrow stablecoins by providing collateral in BTC or BTC-related assets, such as Bitcoin-pegged tokens and 

 of Bitcoin. Users can access funds at fixed repayment rates, ensuring stability in the otherwise volatile crypto finance world. This stability, in turn, drives the more active use of Bitcoin-backed assets in the 

Importantly, Avalon Labs has secured access to billions of dollars in accessible stablecoin funds from centralized finance (CeFi) institutions, helping it act as a key bridge between the worlds of traditional and crypto finance.

 (AVL) is a decentralized BTCFi lending platform that lets users borrow stablecoins by supplying collateral in the Bitcoin cryptocurrency or in BTC-related crypto assets.

 The platform also provides opportunities to earn yield by supplying crypto funds to several liquidity pools. The platform's flagship asset is the USDa stablecoin, backed by Bitcoin.

Avalon also offers other lending opportunities via two primary modes: CeDeFi and DeFi. The CeDeFi offering allows users to access funds in the 

 (USDT) stablecoin, while the DeFi component is made up of three lending and borrowing pools — based on BTC and BTC's liquid staking derivatives, 

Avalon Labs has implemented a series of risk mitigation measures in order to protect its users and ecosystem. Measures focusing on the lending mechanism include the requirement for overcollateralization of all loans, and a rigorous liquidation procedure activated when the 

 (LTV) ratio drops below sustainable levels. Platform-wide risk mitigation measures include regular internal and external security audits, and AI-driven 

Avalon Labs operates on multiple blockchain platforms, including 

, with plans to expand to more decentralized networks in the future.

The project conducted its seed round fundraising in March 2024, and actively entered the BTCFi niche in November 2024 with the launch of its USDa stablecoin. As of the time of writing in early February 2025, the platform is preparing for the launch of its native token, AVL.

USDa is Avalon’s Bitcoin-backed stablecoin, designed to help BTC holders put their funds to active use in the DeFi ecosystem. By providing Bitcoin-based collateral, borrowers can mint USDa, which is freely exchangeable with the USDT stablecoin at a 1:1 ratio. As such, USDa is indirectly pegged to the U.S. dollar via a fixed-rate USDT conversion mechanism.

By locking their collateral and requesting USDa, users create so-called collateralized debt positions (CDPs) — an overcollateralized crypto debt instrument first popularized in the DeFi industry by 

Besides the stable, USD-pegged rate, USDa boasts several other benefits. First, borrowers can access fixed-rate interest repayments for their debts, enjoying certainty in planning their payments to the platform. Secondly, early finalization of debt doesn’t carry a financial penalty. Importantly, USDa can be put to use across different chains, thanks to its utilization of the 

CeDeFi Lending is a major component of Avalon Labs' focus on Bitcoin-backed loans. The project claims to have secured access to billions of dollars in USDT and 

 (USDC) funds at traditional finance institutions. This allows Avalon users to borrow funds in these popular stablecoins at fixed rates of 8 –10%. As of late January 2025, Avalon's CeDeFi lending component allows you to borrow USDT by providing collateral in Ignition FBTC (FBTC), a Bitcoin-pegged omnichain cryptocurrency. Other collateral and borrowing assets (e.g., USDC loans) might also be introduced in the future.

Avalon Labs’ DeFi lending component is represented by three main types of liquidity pools, against which users can lend and borrow assets. The BTC LSD Pools are made up of BTC and BTC-based liquid tokens, with each liquid token isolated to its own independently operating pool. There are also RWA Lending Pools, which consist of RWA tokens and stablecoins. The third type is the General Pool, containing mainstream assets like BTC, ETH, popular stablecoins and more.

The platform separates each asset, such as each liquid token or RWA, into its own isolated pool. Pool isolation helps structure risk mitigation measures carefully tailored to each asset.

For the first few months on the market, Avalon has operated without a native token. The project is currently gearing up for the introduction of its 

, AVL, to be launched sometime in Q1 2025. AVL will support not only governance but also a range of other functions. One of these is staking. By staking AVL, users will be issued sAVL, an asset that will be used directly for governance processes. sAVL holders will participate in votes to decide the rules and future direction of the platform. Staking will also let them accrue crypto rewards in AVL tokens.

Additionally, AVL will provide access to exclusive features, perks and fee rebates on its platform.

The AVL token will be issued with a total supply of 1 billion. Planned supply allocation shares are as follows:

 platform. Bybit Pre-Market Spot is an over-the-counter (OTC) trading platform that allows you to acquire promising new cryptocurrencies before listings on Bybit's main Spot trading market, letting you access these assets at potentially discounted rates.

The AVL listing on Pre-Market Spot lets you speculate on the new token's potential. Naturally, before investing in any asset (whether it's offered via Pre-Market Spot or other trading environments), you’re encouraged to 

 on the project's background, operational details and future potential.

The sphere of financial solutions for the Bitcoin blockchain is quickly gathering pace, with several projects in the cryptocurrency market aiming to help Bitcoin holders put their funds to active use. Avalon Labs is a key initiative within this niche of the cryptocurrency industry, offering a much-needed service — stablecoin issuance backed by the security of Bitcoin. 

Early indicators suggest that this project has significant potential within the Bitcoin ecosystem, as well as within the wider crypto ecosystem. Of particular importance is the project team's claimed access to billions of dollars in USDT and USDC funds at traditional institutional finance providers. A thorough risk management framework — supported by regular audits, AI-driven monitoring, and sound debt collateralization and liquidation mechanisms — also provides further assurances to the user community.

The benefits offered by Avalon Labs are clear-cut, but more details on access to the billions of dollars at traditional finance providers would certainly contribute to user trust in the platform, something that's always helpful for any young web3 startup. Currently, however, the main focus is on the platform's imminent native token launch. AVL's token generation event (TGE) will be a significant evolutionary step in the life of this promising BTCFi project.

Intermediate

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Avalon Labs (AVL): Driving Bitcoin’s Financial Evolution

Helium Mobile is revolutionizing telecom with three new plans, including the Zero Plan.

Daily Top Performer — Ampleforth (FORTH)

The S&P 500 rose 0.72% on Tuesday, but futures fell on Wednesday after Alphabet’s weak earnings while investors await more earnings reports. Gold hit a record $2,845.14 as U.S.-China tariffs fueled safe-haven demand. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 4.35%, with Bitcoin and Ether dropping by 2.52% and 6.25%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is FORTH, which surged nearly 49.1% following the announcement of Ampleforth’s Evergreen Cycle, a decentralized solution for resilient DeFi treasuries.

Ampleforth (FORTH), founded in 2018, is a stablecoin that adjusts its supply daily through “rebasing” to maintain price stability, ensuring holders keep their proportional ownership. Ampleforth 

 AMPL and SPOT as decentralized alternatives for DeFi treasuries, reducing reliance on centralized stablecoins. AMPL’s elastic supply and SPOT’s low volatility offer DAOs a resilient treasury strategy through the "Evergreen Cycle"—buying AMPL in bullish markets and rotating into SPOT during downturns. This system enhances liquidity, mitigates market cycle risks, and enables DAOs to act as decentralized “micro central banks,” reinforcing long-term stability in DeFi.

Check Out the Latest Prices, Charts, and Data of 

Helium Mobile is revolutionizing telecom with 

, including the Zero Plan, which offers free mobile service (3GB data, 300 texts, 100 minutes) while rewarding users with Cloud Points for sharing anonymized data. These points can be redeemed for gift cards and experiences. Other plans include the Air Plan ($15/month) for 10GB and the Infinity Plan ($30/month) for unlimited data. Helium Mobile combines community-powered networking with the nation’s largest 5G coverage, making mobile service more affordable, flexible, and rewarding. The plans are currently invite-only, with a waitlist available.

Yesterday, BTC Spot ETFs recorded $91.7M in total inflows, with $72.2M from non-GBTC and $19.5M from GBTC.

, a decentralized social network platform, is hinting at a potential airdrop for users. To increase chances of receiving the airdrop, users should sign up on the platform, create a Town, deposit ETH, and join other Towns to earn points. Towns raised $25.5M in funding and operates on the Caldera network. Tipping others and daily engagement may boost rewards.

Beginner

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Helium Mobile Introduces Free Plan and Rewards for Staying Connected

Haedal unlocks liquidity for staked SUI by converting it into haSUI tokens, enabling users to earn rewards while freely participating in DeFi activities.

vWhat if you could earn staking rewards and keep your crypto liquid? Haedal, a pioneering 

 blockchain, turns this possibility into reality. Haedal eliminates the trade-off between 

 and accessing liquidity by transforming staked SUI tokens into haSUI — a yield-bearing asset usable across 

 (DeFi). This article explores how Haedal simplifies staking, enhances capital efficiency and unlocks superior returns while fueling the growth of the Sui ecosystem.

Haedal is a liquid staking protocol on the Sui blockchain that allows users to stake SUI tokens, mint haSUI (a yield-bearing 

) and earn additional rewards through DeFi integrations. It simplifies participation in staking while maintaining liquidity for decentralized finance activities.

Haedal was created by a group of anonymous blockchain enthusiasts and experts who recognized the need for a more efficient and secure way to stake SUI tokens on the Sui blockchain. Their vision for Haedal was born from the desire to improve the DeFi ecosystem by offering a simple, one-click liquid staking solution. This approach allows users to earn rewards while still keeping their assets flexible and liquid.

Haedal bridges the gap between staking and decentralized finance, making it easier for users to participate in various DeFi activities without sacrificing security or efficiency. By doing so, Haedal boosts user engagement within the Sui ecosystem and also helps strengthen and expand the broader DeFi ecosystem, paving the way for greater blockchain adoption.

Haedal seeks to address the major issue of lack of liquidity in traditional staking models, whereby users must lock their assets for fixed periods. This restricts their ability to use those funds for other investments or DeFi activities, such as 

 or governance participation, reducing flexibility and deterring engagement. 

Another barrier is the complexity of staking management. Selecting validators, monitoring performance and handling technical processes can overwhelm newcomers — and even experienced users. This steep learning curve limits broader adoption and discourages participation in ecosystem growth. 

Also, many staking systems suffer from inefficiency and security risks. Outdated practices or centralized control can expose users to asset loss and/or downtime, while fragmented platforms make participation cumbersome. These vulnerabilities erode trust and hinder the scalability of decentralized networks. 

 technology to tackle liquidity constraints, simplify user experience and enhance security, aiming to create a more accessible and efficient ecosystem for staking and DeFi integration.

Haedal deploys the following advanced mechanisms to make staking SUI tokens more flexible and user-friendly. 

haSUI is a versatile token that unlocks liquidity for users who stake their SUI tokens through Haedal. When users stake SUI, they receive haSUI at a 1:1 ratio, acting as a dynamic “receipt” for their staked assets. Unlike 

, in which funds are locked and unusable, haSUI retains liquidity, allowing users to trade, lend or use it as collateral in DeFi apps while their original SUI continues earning staking rewards. 

Over time, haSUI’s value grows as it accumulates rewards from validators securing the Sui blockchain. This dual functionality bridges the gap between passive income and active participation in DeFi, letting users maximize their crypto holdings without compromise. 

Haedal streamlines staking by automating the entire process. Users deposit SUI tokens into the protocol, which then delegates them to trusted, high-performing validators on the Sui network. This eliminates the need for users to research validators or manage technical details manually. The system continuously monitors validator performance, reallocating stakes to optimize returns and minimize risks. 

Unlike more rigid staking models, Haedal’s protocol imposes no lockup periods, so users can unstake at any time by swapping their haSUI back to SUI. This flexibility, combined with automated efficiency, makes staking accessible to everyone, from newcomers to institutions, while ensuring their contributions actively support Sui’s network security. 

The Random Vault adds an element of chance to traditional staking, creating a fun and community-driven experience. Users deposit SUI into the vault for one week, during which their funds are delegated to validators. At the end of the week, all staking rewards generated by the vault are pooled and distributed to five randomly selected participants. This gamified approach injects some excitement while also diversifying risk by spreading stakes across multiple validators automatically. 

Participants enjoy a hands-off experience, requiring no active management, while gaining exposure to potential bonus rewards. The Random Vault democratizes staking, offering both seasoned users and casual participants a fresh way to engage with the Haedal ecosystem. 

The Haedal Market Maker (HMM) ensures seamless trading and liquidity for haSUI tokens, addressing common challenges in DeFi: price volatility and accessibility. HMM operates by providing deep liquidity pools for haSUI trading pairs, which stabilizes prices and minimizes slippage during trades. This means users can buy or sell haSUI quickly and at fair market rates, even during periods of high demand. 

HMM maintains a tight peg between haSUI and SUI and enforces trust and usability, making the token practical for everyday DeFi activities, such as swapping, lending and/or collateralizing loans. This infrastructure not only benefits individual users, but also strengthens the broader Sui ecosystem, encouraging adoption and enabling institutions to participate confidently in the decentralized finance realm. 

Haedal has achieved significant milestones, including launching its liquid staking protocol, growing its 

Looking ahead, the project aims to expand its product offerings, improve scalability and strengthen its role in the Sui ecosystem. 

Haedal redefines staking on Sui by merging liquidity, simplicity and innovation. By transforming staked SUI into yield-bearing haSUI tokens, it unlocks DeFi opportunities without sacrificing rewards or security. Features such as automated staking, gamified vaults and robust liquidity solutions empower users to maximize earnings while supporting network growth. 

With a clear road map and a community-driven ethos, Haedal is positioning itself as a catalyst for accessible, efficient decentralized finance, bridging traditional asset holding with the dynamic potential of blockchain.

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Haedal: Unlock Superior Returns With Sui Liquid Staking

Loopy is a Sui-based meme coin inspired by a beaver with a distinctive pink hue that’s featured in the Pororo the Little Penguin cartoon. Learn more here.

If you want a comprehensive crypto portfolio, it pays to check out 

. Though these coins might not be worth as much as major cryptos, their potentially drastic price swings can result in big profits for investors. One intriguing 

 meme coin to check out is Loopy, a cartoon-themed coin (inspired by a popular television show) that’s had an interesting growth pattern of late. To see if Loopy is the right investment for you, we’ll take a look at its tokenomics and pricing trends. 

 is a meme coin based on the Sui blockchain. It's inspired by a beaver with a distinctive pink hue that’s featured in the 

 cartoon. Much like the character herself, the Loopy coin hopes to showcase the values of friendship, hope and harmony.

On a technological level, Loopy works similarly to other meme coins. Loopy uses the Sui blockchain as the foundation for its system. This delegated 

 network is known for its scalability and speed. Loopy takes advantage of Sui's features by using its standardized 

 and token creation protocols. Since Loopy doesn't have to run its own blockchain, it can focus more on the marketing side of operating a cryptocurrency.

In order to increase its token's market capitalization, Loopy has heavily integrated itself into social media. Loopy runs both a Telegram channel and a 

 where it interacts with its audience. These sites post memes about gentlehearted Loopy, encouraging users to share their own. 

In addition to marketing the Loopy coin, these social media sites also help to operate the entire Loopy community by tracking member participation and using these metrics to determine eligibility for 

Loopy's token, with the symbol LOOPY on most exchanges, is a traditional meme coin that has no utility outside of entertainment. Its sole purpose is to appeal to fans of gentlehearted Loopy in 

 The Loopy coin does have a somewhat higher supply than many other tokens, with a 

. Half of the tokens were distributed to community members in an 

, while the other half were used for token liquidity. The majority of these tokens are circulating now, so the coin's current circulating supply is close to its total supply of 1 trillion tokens.

Loopy was released back in October 2024, so it's already been the subject of a few newsworthy events. The coin was initially selling for around $0.000012, but a decline in trading volume led to a sudden price drop, to around $0.0000035 in early November 2024. Fortunately, fans of the beaver with the distinctive pink hue rallied behind it, and it surged to an impressive all-time high (ATH) of $0.000013 by mid-November. 

When the Loopy token’s price increased by over 763% in just 24 hours, it began receiving a lot of attention. The coin's market cap reached $17 million, and it was briefly one of the top Sui meme coins. Since its heyday, the Loopy token has had some struggles. Starting in January 2025, coin prices dropped to as low as $0.00000004 as its market cap plummeted. 

However, these unusually low prices have been just as noteworthy as the coin's ATH. Loopy fans who were getting priced out of owning the token have been expressing interest in it once again, due to its more affordable prices. The trading volume of Loopy might look a little low now, but it's no longer in free fall, as it was in early January 2025. Some market analysts even suggest that LOOPY’s price may reach 

LOOPY tokens have a high current circulating supply, but not all exchanges support this token yet. It's primarily available through smaller, decentralized exchanges. However, if you prefer a more convenient experience, check out the 

. This service provides access to DEX offerings, while maintaining the same great service that all Bybit users can count on. Purchasing LOOPY through Bybit is as simple as checking the current price, entering the number of LOOPY you want to buy and confirming your purchase. 

LOOPY's market cap and 24-hour trading volume have certainly declined from the coin’s heyday, but it still holds some promise for investors. The low current price means that it's possible to buy a lot of LOOPY without spending much money. This can result in big profits if the coin experiences even minor price increases. Furthermore, most pricing analyses suggest that LOOPY's market cap could recover in the future.

However, don't forget that this sort of investment can be risky. Some meme coins generally fail to return to their ATHs after brief enthusiasm during their launches. Loopy's team hasn't been promoting their coin as much lately, so whether or not LOOPY can recover will rely mostly on the coin's fanbase. While investing a bit of extra money you have in LOOPY could be fun, it’s not recommended that you invest money you can’t afford to lose. Meme coins are always volatile, and it’s essential to use some caution and 

 any time you invest in tokens such as LOOPY.

While LOOPY tokens might not have the highest 24-hour trading volume anymore, this meme coin is still backed by a dedicated community. Its ability to appeal to 

fans with positivity and humor has helped it stand out from other Sui meme coins. Loopy is a great example of how a simple yet fun concept can end up appealing to thousands of investors.

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Loopy (LOOPY): The Most Adorable Meme Coin on Sui

Bybit Learn

Options

Crypto options are a fairly new financial instrument that require a modest sum for potentially high returns. Explore the hype around them with Bybit.

In every financial market, contracts form the basis of things. Contracts are legally binding agreements designed to serve specific purposes and needs. In financial markets, contracts are crafted to make a profit and are also known as “financial instruments” — abstract tools made to generate profit.

One such instrument that’s been developed to make a profit is options. As with other 

, options contracts track the underlying asset's price, i.e., its value is dependent largely on other instruments' price (cash or derivatives). An option is a contract that empowers a party to buy/sell a financial instrument at a predetermined price, on or before a predetermined date.

In their bid to become mainstream, cryptocurrencies are adopting several financial processes and instruments, with options being one of the latest instruments to be integrated into the crypto ecosystem.

 against existing risk and provide greater market exposure, diversifying one’s portfolio and enabling increased profit margins. 

Apart from this, options also allow traders to use a small amount of money to control a larger position value (leverage). As only a small amount is involved, the ROI on options trading is much higher than that of other types of trading.

Yes, there are options in cryptocurrency, and this sector of the market has experienced tremendous growth in the past few years, with outstanding contracts 

Crypto options gives a person the privilege (not obligation) to buy or sell the underlying 

 at a preset price on or before the expiration date after a premium is purchased. They’re used by options traders for speculation (potential profit if the asset moves in your direction), or by investors for hedging. As we know, volatility is rife in the crypto market, making crypto options a popular choice for investors. Currently, the most popular crypto options are 

. Before we proceed, a couple of definitions are in order.

 The amount a person pays to secure the rights provided by the contract. 

 The price at which a person has the right to buy the underlying asset (for a call option), or the price at which a person has the right to sell the underlying asset (for a put option).

There are two types of options contracts: 

, you can either buy call options or sell call options. 

When you buy a call option, you are essentially buying an underlying asset at a particular predetermined price, regardless of the market price before/at the contract’s expiration. 

When speculating in the financial market, you can purchase a call option when you believe the market price at the contract expiration will be higher than the strike price. In short, you anticipate that the value of the options will increase — the more its value increases, the more you will earn.

For example, Shaw purchases an Ethereum call option that will expire after a week, with a premium of 25 

 and a strike price of $3,000. When the price of ETH moves from $3,000 to $3,200, he may decide to close his position before the validity period elapses, and his gross profit will be $175 [i.e., ($3,200-$3,000-$25)/market price at execution − strike price - premium].

On the other hand, call option selling (naked call) is carried out when a trader expects the price of the underlying wallet to remain flat or move lower. 

Given the example above, as long as the price at expiry does not go to/go below the strike price of $3,000, and the buyer does not exercise the contract, you will collect the full premium of 25 USDT.

A call option entitles you to buy an underlying asset at a particular predetermined price, regardless of the market price before/at the contract's expiration. 

 allows you to sell the underlying asset at a predetermined price before/at the expiration of the contract, regardless of the market price at that time. 

Similar to calls, you can buy put options or sell put options. When you buy a put option, you are essentially selling the underlying asset at a predetermined price before/at the expiration of the contract, regardless of the market price at that time. 

When trying to secure the gains of minting or investing, a person could enter a put option contract to ensure the asset retains substantial value. A speculator could also purchase a put option if they believe the price of the underlying asset class would be lower than the strike price, in order to make a profit, by repurchasing it at a lower price than the one at which they bought it.

 when the price of 1 BTC was $48, 000. As she expected its price to fall, she bought a put option from her crypto exchange that gave her the right to sell her asset at a strike price of $45,000 after 2 weeks. When the price of BTC got to $40,000, Chris exercised her right and profited $5,000 as a result.

On the other hand, put option selling (naked put) is carried out when a trader expects the price of the underlying wallet to go up.

Using the same example above, a trader who sells Chris the option is betting that the price of BTC will go up. If the price of 1 BTC goes up to more than $48, 000 e.g., $50, 000, at the date of expiry, the option will expire worthless and the seller will get to keep the full premium.

As contracts, options usually involve two parties: a trader and an exchange. An options seller places a contract order on the crypto exchange, with the expiration date and the strike price specified. Then, a buyer is matched with the order by the exchange.

To ensure fairness, the cost of the premium is determined by the amount of time remaining on a contract before its expiration, the

 of the underlying asset, the market price of the underlying asset, and 

This is a strategy regularly used in trading options. As its name implies, the bull put strategy is used when a trader or speculator believes that the underlying asset will experience a slight price increase. 

 can also be achieved with OTM i.e., selling a put option at a higher strike price and buying another put option at a lower strike price, with the same date of expiration (DTE).

The key here is that you want to sell the higher strike, and buy the lower strike. However, although the risks are fairly low, this strategy is not immune to risks. The potential loss would be the difference between the two strikes, minus the credit received.

If the asset price is lower than the strike price at the expiration, both put options will expire ITM, and a loss would be recorded.

For example, a crypto investor is bullish on Bitcoin,  whose current price is at $48, 000. The investor sells a put option for a premium of $2,400, at the strike price of $48,000 with a 1-month date to expiry (expiring in one month). Concurrently, he buys another put option for $800 with a strike price of $45,000 expiring in one month. The investor receives a net profit of $1,600 ($2,400-$800 premium paid) for the two options. This is called the “

If things go south and Bitcoin’s price drops to between $45,000 and $48,000 at the date of expiry a month later, the investor would likely make a loss. If Bitcoin’s price goes even more bearish and drops below $45,000, the investor would incur a max loss capped at $45,000 - $48,000 + $1,600 = -$1,400.

This is the inverse of the bull put strategy. When an investor feels moderately 

 is the right way to go, as it reduces cost and risk while simultaneously offering the chance to profit.

To execute this strategy, you buy a “buy put” option and simultaneously purchase a “sell put” option with a lower strike price. Both contracts need to be of the same asset and same expiration date.

For example, if the asset is trading around $65, you can buy a strike put at that price (or around it) for $5 (this equals $500 as premium), while selling another put option that has a strike of $60 at $3 (this equals $300). Note that the two options are to be executed at the same time. 

It’s ideal to place the orders as a spread to do this. The net debt is $2 per spread. The premium of $200 is the maximum loss that can be recorded. If the price drops to $50, you get a gross spread of $5, while the net spread is $3 (this equals $300).

 makes use of four contracts: two puts (a long and a short) and two calls (a long and a short). They’ll all have four strike prices and the same expiration date. It profits from low volatility (small moves in prices). 

The American-style options contract is a method where the execution of the contract can happen before the expiration date stated in the contract. In comparison, the European-style options contract requires that the contract be settled only after the contract's expiration.

A cash-settled options contract is a procedure of settlement in which the contract is settled by the cash equivalent of the underlying asset upon execution if the contract is in their favor. But physically-settled contracts are settlement styles in which the underlying asset is used to execute the contract. 

For example, if Sandra closes her call options position that allows her to buy 10 

 at a strike price of $136, and the market price is $170, instead of receiving a credit of $340 as gross profit ($170 - $136 × 10), she’s credited with the amount of Litecoins the profit can buy, which is 2 LTC ($170 + $170 = $340). 

In stock options trading, 1 contract is equivalent to 100 stocks. Thus, when the price of a stock goes up by $1, the investor profits $1 x 100 stocks = $100. 

However, when it comes to crypto options trading, using BTC as an example, 1 contract = 1 BTC. When BTC’s price goes up by $1, the profit earned is $1 x 1 coin = $1. To get the same $100, an investor will have to buy 100 contracts or 100 BTC. 

These two financial derivatives are remarkably similar, as they both track underlying assets and allow people to speculate on them. They also allow traders to take long (call) and short (put) positions.

However, their features differ slightly in their modes of operation. Let's see how.

An options contract allows you to buy an underlying asset at a price other than the current market price. It also gives you the “option” of buying/selling the underlying asset. However, in a 

, this move is an obligation, a duty that isn't based on the holder's discretion. This means that if the market moves against the direction of a futures contract, the position will be closed at the expiration date. As it’s a type of 

Compared to options contracts, futures contracts are high-risk/high-reward. Unlike options contracts, where the maximum potential loss is limited to the premium paid for the contract, with a futures contract the loss depends on how much the price has moved away from your entry at the expiration date. The stakes are high with futures: While there’s potential to make a lot of money, you could potentially lose a lot of money as well.

) are contracts with no expiration date. They allow traders to close their positions (if they’re gaining) at any time. At times, their 

 if the market moves away from their predictions as a result of the 

This means that all perpetual contracts are settled in cash, as there is no expiration date when they’ll be physically settled. That is, all perpetual contracts are American-style.

The crypto-financial space is relatively new, and complex instruments are just gaining a foothold in 

 technology-backed assets. The dearth of regulation is concrete proof of this assertion. However, we can't deny the potential that cryptocurrencies have in revolutionizing the financial space. 

Options trading is widely gaining popularity in the crypto ecosystem. With potentially high-profit margins and calculated risk, consider adding crypto options to your portfolio for diversification.


Crypto Options: Why They Deserve a Place in Your Portfolio

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards