Introducing UpDown Options for US Users in Crypto.com App | Crypto.com (2024)

FAQs

What are UpDown options? ›

UpDown Options is a special type of option that automatically gets terminated (or “knocked out”) if the underlying asset's price hits a predetermined ceiling or floor price.

Yes, but not on all exchanges. Numerous digital asset exchanges provide crypto derivatives, including Bitcoin options, on their platforms. Notable examples include Bybit, Deribit, and OKX.

“We recently made a business decision to suspend the institutional offering of the Crypto.com Exchange in the U.S. as of 11:59pm EDT June 21, 2023 due to limited demand from institutions in the U.S. in the current market landscape.

The Crypto.com App is currently available in 49 states in the United States of America & US Territories, including: Alabama. Alaska.

The six inputs that determine an option's value are stock price, strike price, time to expiration, interest rate, dividend yield and volatility (over the life of the option).

The potential benefits of trading UpDown Options include built-in protection via clearly stated floor and ceiling prices, automatically taking profit and potentially limiting losses, gaining full price exposure to an asset at a fraction of its price, and facilitating hedging for specific needs.

Crypto.com has both a web (Crypto.com Exchange) and mobile platform. However, most U.S. investors will be limited to its mobile app since only select U.S. institutional investors are eligible to use the web trading platform.

While the shutdown impacts institutional trading, Crypto.com assured retail investors they can still use the platform in the U.S. This includes the exchange's CFTC-regulated derivatives trading.

User reports indicate no current problems at Crypto.com.

Yes. In the United States, your transactions on Crypto.com and other platforms are subject to income and capital gains tax. If you've earned or disposed of crypto (ex. Sold or traded away cryptocurrency) during the year, you'll have a tax liability to report to the IRS.

Is crypto com safe for US users? ›

At Crypto.com, we put security first, always. Security and data privacy assessments are built into our processes, so you can rest assured that your funds are safe with us.

Coinbase

Coinbase is the most popular cryptocurrency exchange based in the United States, and offers an extremely user-friendly UI and trading experience. Unlike other exchanges, Coinbase has never suffered a major cryptocurrency hack and has a strong reputation for security.

All Users' deposits are held in cold storage, for security reasons, however, withdrawal requests - for all cryptos - are automated. In most cases, withdrawals are almost instant and normally should take no longer than 2-3 hours to be processed.

UPSIDE OPTIONS means the options awarded, if any, pursuant to the Employee Stock Option Plan, to a Participant to give them the opportunity to increase the value of the award.

The upside potential is the premium for the option, the downside potential is the amount the stock is worth. You want the price to stay above the strike price so that the buyer doesn't force you to sell at a higher price than the stock is worth.

A down-and-in option can be a call or put. Both get knocked in if the underlying falls to the barrier price. For an up-and-in option, if the underlying rises to the barrier price, then the option becomes viable. Both calls and puts will expire worthless if the underlying never rises to its barrier price.