TL; DR
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Deribit just opened BTC and ETH options that expire four days after the election, so investors can protect themselves depending on who wins (and thus put a little extra money into crypto in the run-up).
Full story
Do you use the 7-Eleven app?
Probably not.
But if you do, you might know that you can use it to lock in fuel prices for seven days. The idea is that if you think gasoline is about to become more expensive, you can lock in lower prices in advance.
That’s kind of how options trading works.
You buy the choice to buy/sell an asset at a fixed price, at a certain date in the future.
We tell you this because Deribit (the largest Bitcoin and Ethereum options exchange in the world) just announced that they are offering customers the ability to purchase the option to buy or sell BTC & ETH, four days after the US elections.
Why is that important?
Because Biden is seen as anti-crypto, while Trump is seen as pro-crypto – and the market will react based on who wins.
So now investors can lower their risk by using these options (for example, if Biden wins, they may want to lock in the option to sell at a fixed price higher than what would be expected in that situation).
And now that these precautions are in place, it means investors may feel a little more comfortable putting some extra money into crypto ahead of the move.
Nice!