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Traditional financial markets have been in existence for a long time, with assets such as stocks featuring as their key products. In recent years, however, cryptocurrency has made a significant impact on the finance scene, and is shaping up to be quite the competitor to traditional finance products.
Just like stock options, there are now crypto options, which allow traders to participate in the burgeoning cryptocurrency market without having to own any crypto themselves. Users can profit from the rise or fall of these options, which are tied to the performance of crypto assets.
Crypto options are financial tools that confer upon an options owner the opportunity (though not the obligation) to buy or sell an underlying asset at a predetermined price 1) before the option reaches expiration, or 2) after a premium is bought.
The two most common types of crypto options are Bitcoin options and ETH options. This makes sense since Bitcoin and Ethereum are currently the two largest projects by market cap.