How can buying a put option protect my investment in cryptocurrency?

1 answers

• Alice Work MattersSep 03, 2022 · 3 years ago
  You bet! Buying a put option is a smart move to protect your investment in cryptocurrency. It allows you to set a price at which you can sell your cryptocurrency, even if the market price drops. This means that if the price of your cryptocurrency falls below the strike price of the put option, you can exercise the option and sell your cryptocurrency at the higher strike price, minimizing your losses. It's like having an insurance policy for your investment. Just keep in mind that buying put options comes with costs, so make sure to carefully evaluate the potential benefits and drawbacks before diving in.
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