Since the beginning of 2017, Bitcoin price has increased sevenfold, with a few sharp drops and this volatility has given way to the development of Bitcoin options.
Binary Bitcoin Options
A binary option is a simple type of option that is valued according to a true/false statement. For example, if the price of the underlying asset Bitcoin is above a certain level, the call (long) option will pay 100; if it is below, it will pay 0. For a put option, the reverse is true.
Exchange Traded Bitcoin Options
On July 24, 2017, in a breakthrough ruling, the US Commodities Futures Trade Commission (CFTC) approved a proposal to launch a regulated Bitcoin derivative clearing market, New York-based LedgerX.
Bitcoin Invested Hedge Funds
Options are widely used to manage hedge funds’ portfolio risks or “to hedge or speculate on the price of an underlying asset with a quantified risk,” according to retired hedge fund manager Michael Steinhardt, whose career earnings made him a legend in the industry.
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Why to use binary options (that usually don't pay 100 in case of success, so are statistically a loss for investors and a gain for broker) when you can simply long or short sell on exchange or even (i don't recommend) using CFD? This seems me meaningless