With an FTX account setup, you can now trade Bitcoin Options after you’ve deposited your desired amount of Bitcoin (BTC) on the exchange and converted it to USD through the conversion tool on the wallet page. Head over to the Options tab when you’re ready to get started. Bitcoin Options are just like traditional options but often riskier due to the volatility of cryptocurrencies in general. As FTX describes it on the Options Introductions page, Bitcoin Options give Traders the right, but not the obligation, to buy or sell Bitcoin at a predetermined date and price.

Calls & Puts are set with parameters such as Strike Price, Expiration Date and Underlying Asset. We highly recommend reading the Introduction page prior to investing any serious funds into options trading as Bitcoin Options are somewhat similar to Bitcoin Futures but have various points of difference that make them inherently risky to less experienced Traders.

FTX Exchange is one of the first cryptocurrency exchanges to offer Bitcoin Options and are our top recommendation when deciding which exchange to trade on.

Bitcoin Options on FTX Exchange work on a RFQ (Request for Quote) system where a quote is delivered to you based on your underlying asset, order type, strike price, expiry data and nominated size. After filling in these fields and pressing “Request Quote”, a quote is delivered to you in around 10 seconds if that Bitcoin Option is available. If an option is found you are free to accept or decline that option as you wish.

Order books for Bitcoin Options work nearly identical to the order books found on the Futures markets. Requests are put up for offer and it is up to another Trader to submit their own offer or match yours. FTX has already proven to be the most liquid exchange when it comes to Futures and Bitcoin Options trading.

When options expire on FTX, their system will handle the decisions for you. If you hold a winning option at the time of expiry, the amount gained from that option trade will be credited straight to your account. Options that don’t go in your favor are also handled the same way automatically, there is no need to check back when the nominated expiry date has been reached.

Once your Bitcoin Option trade went your way or not, you may want to convert your USD balance back to BTC for withdrawal. Luckily FTX exchange make this just as simple as it was when you started. Go back to your Wallet, search “USD” and click “Convert”. If you wish to perform KYC and upgrade your identity status on FTX Exchange, you can even request a bank transfer into your own account if you’d rather keep everything in USD and not bother with cryptocurrencies at all.

Following the screenshot provided, ensure the conversion is from USD Stablecoins (USD) to Bitcoin (BTC). Enter the amount of USD you’d like to convert and click “Convert” to proceed. You can obviously convert your USD to a wide range of cryptocurrencies on the platform if you’d rather hold something other than Bitcoin.

Unless you’re trading, never keep your coins on an exchange for an extended period of time. FTX Exchange has proven itself over time to be an extremely trustworthy exchange, but it’s just best practice to be in control of your own funds at all times. To withdraw your Bitcoin (BTC) or whatever funds you converted your USD to, go to your Wallet and click “Withdraw” on your new balance. Bitcoin (BTC) can be safely stored using a software wallet like Exodus or a hardware wallet like a Ledger Nano X.

Enter the amount of Bitcoin (BTC) you’d like to withdraw in the text-box provided. Enjoy the fee-less withdrawals FTX Exchange offers and make sure the withdraw address you have entered is yours and is correct.

When you’re happy, click “Withdraw”. You may be asked for phone/email verification before a withdrawal can be processed.