Crypto Exchange BIT Unveils Options Market for ADA
Cryptocurrency derivatives exchange BIT on Wednesday rolled out options tied to Cardano’s ADA token while promising to add more alternative cryptocurrencies (altcoins) in coming months.
The ADA options are live in the platform today and are denominated and settled in U.S. dollars, BIT said in a press release shared with CoinDesk. One ADA options contract represents 1 ADA, the exchange’s spokesperson said.
ADA, the native token of Ethereum competitor Cardano, has a market value of $9.73 billion and is the world’s eighth-largest cryptocurrency at press time. Alternative cryptocurrencies tend to be more volatile than the market leaders, bitcoin (BTC) and ether (ETH).
Options are derivative contracts that give the purchaser the right to buy or sell an underlying asset at a certain price on or before a specific date. A call option gives the right to buy the asset, while a put option gives the right to sell.
(With inputs from Shikha Singh)
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