What is the difference between buying puts and selling puts in the world of digital assets?

1 answers

• Mar 23, 2022 · 3 years ago
  Buying puts and selling puts are two common options strategies in the world of digital assets. When you buy puts, you are essentially betting that the price of a specific digital asset will decrease within a certain time frame. If the price does indeed drop, you can exercise your option and sell the asset at a higher price than the market value. This allows you to profit from the price decline. On the other hand, when you sell puts, you are taking on the obligation to buy a specific digital asset at a predetermined price within a certain time frame. If the price of the asset drops below the predetermined price, the option may be exercised and you will have to buy the asset at a potentially higher price than the market value. This strategy can be used to generate income or to acquire the asset at a lower price if the option is not exercised. It's important to carefully consider the risks and rewards of both strategies before making any investment decisions.
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