Options Trading Vs Cryptocurrency – Where Should You Invest Your Money?

By Aaron Sim, Options Trading Mentor

The crypto resurgence is here!

When crypto burst onto the scene a few years ago, the hype was crushed seemingly overnight by government rules and regulations.

In recent months however, crypto is making a comeback.

Plenty of attention has been given to Bitcoin/Dogecoin millionaires.

You probably see articles about cryptocurrency on Facebook every day, or have friends who already invested.

There’s also been lots of discussion about crypto from my own students in our Options Trading Facebook group.

So the question is: Should you invest in cryptocurrency too?

Before you answer that…

Pause. Hold your horses. Step on the brakes. Take a step back.

Read this article first before you decide. It’ll give you valuable insights you need to make the best investment decision possible!

(*Disclaimer: I may be an options investor primarily, but that doesn’t mean I’ll be “bashing” cryptocurrency.

Unlike many “mainstream” opinion articles, what I’ll be doing is to give you an objective opinion on cryptocurrency, options trading, and which avenue is most suitable for your wealth creation needs. Find out more below!)

Is Cryptocurrency A Viable Long-Term Investment Or Simply Just A Passing Fad?

I’m sure many of you have the same question in mind.

After all, crypto had its time in the sun a few years back.

Then just as quickly as it rose, it fell from the public eye.

Only to resurface a few months ago…

More popular than ever.

Everyone seems to be talking about crypto.

Everyone seems to be buying crypto.

So what does an options trader like me think about crypto?

Will I invest in crypto myself?

Find out more below, as I share my own unique opinion on this hot topic: The options trader’s personal opinion on cryptocurrency.

Without further ado, let’s get down to it!

Short Introduction On Cryptocurrency & Options Trading

Cryptocurrency is a digital asset used as a form of “cashless transaction”.

In 2009, Bitcoin was created. It was the first in a new wave of digital currencies sweeping the market today.

Investors can trade coins on cryptocurrency exchanges, or “mine” coins to generate new units for transactions.

People who bought into Bitcoin in its infancy stages would have made some crazy, out-of-this world returns.

E.g. $100 worth of Bitcoin in 2009-2010 is worth almost $50million in 2021. Pretty amazing, right?

As for options trading, it’s the buying and selling of financial contracts which offer you the right, but not the obligation, to buy or sell an asset when its price moves beyond a certain amount within a pre-determined time limit.

So what’s the difference?

Actually, before I go into that, you may be surprised that cryptocurrency investment and options trading are quite similar.

Similarity #1 – Same Investment Fundamentals

Most investments, whether is it cryptocurrency, options trading, value investing, property, forex etc, work fundamentally based on the same principle: You buy something at a lower price, and sell it at a higher price.

In other words, “Buy Low Sell High”.

This is one reason why so many investors are buying into cryptocurrency now. They believe that most coins are at a “low” now, and prices will shoot up in the near future.

For myself and my students, we rely on several tried-and-tested formulas to calculate the pricing movements of the stocks we trade.

If the right stock is available at the right time, we take up the option to buy/sell, and make a profit when the price movement goes as we calculated.

Just like what Daniel did here: 

Similarity #2 – Investment Mentality

Most investors across all investment fields react illogically to market trends. Harsh, but true.

For example, a large coin sale from a “whale” can trigger mass chaos among smaller crypto investors.

A simple tweet from an influencer (think Elon Musk AKA the dogefather) can move millions of coins.

If the trend is negative, many react by panic selling, when it’s sometimes more beneficial to wait for the brief turbulence to pass and stability to return.

If the trend is positive, many react by “FOMO buying”, when it’s sometimes more beneficial to wait for the buying frenzy to end so that the coin’s intrinsic value can be determined.

The same scenario applies to stocks and options trading.

For example, I know of some investors who got caught up in the moment and fell for the recent “Gamestop Trap”.

They ended up losing a significant amount of their portfolio when the trend died down.

I’m not saying that buying/selling a certain coin or option is the right or wrong move (not the point).

But a lot more info and research needs to be done before making your buying/selling decision, rather than simply panicking/FOMO-ing over a spate of online publicity.

My conclusion: the mentality of most investors are generally the same, no matter the investment medium.

That’s why I tell my students to always have investment discipline if you want to “beat the market”.

For Charlotte, this simple and practical advice has made her lots of money:

Similarity #3 – What It Takes To Make Money


To continue on from my previous point, even though many investors react rashly and make poor investment decisions, the right approach to any form of investment can give you positive returns.

While many so-called financial experts have the opinion that cryptocurrency is little more than “gambling”, I don’t believe that’s the case (even though it is highly speculative and volatile in nature).

What I do believe in, is as long as you invest within your “circle of knowledge”, you can make money. As simple as that.

This means you need to know the right strategies, techniques, tactics and everything else there is to know about your preferred investment medium.

Then, and only then, can you make the right investment decision that’ll make you money.

That’s exactly why Kwang Nam attended our program:

Otherwise, any form of investment (not just cryptocurrency but options trading also) WILL BE a gamble.

The Key Difference Between Cryptocurrency Investment & Options Trading

Now that we covered the similarities, let’s talk about the difference.

As I mentioned a few paragraphs above, the key to profitable investing is to invest within your “circle of knowledge”.

In my humble opinion, that’s the difference.

Options trading has been around for decades. Millions of millionaires have been created by it.

There are many reputable courses (mine included) about the subject that gives you everything you need to know on safe, secure and profitable options trading.

It’s also accepted in almost every country and financial organization as a “legit” way to grow your wealth.

This means that your potential options trading “circle of knowledge”, with regards to both investment skillset and societal trends, can cover almost all your bases.

End Result: You can easily eliminate most of the risk. Take the “safety first” approach. Model after and learn from successful options traders to get similar returns.

For cryptocurrency at this moment, I see it as the:

“Wild West” Of The Investing World

Anything goes. Who knows what new rules and regulations will be imposed on it tomorrow?

There’s too much uncertainty going on now.

Of course, this also presents a viable opportunity to capitalize on the uncertainty and make huge profits (if you know what you’re doing).

For options trading, I would say that monthly returns of between 15-35% are considered pretty good for most.

For cryptocurrency, I’ve heard of investors who make astonishing returns like 500-1000%!

That’s mind-blowing to be honest. Which is why I’m not discounting the validity of cryptocurrency as an investment medium in the future.

However, whether you should invest in cryptocurrency, goes back to the original question:

How Much Do You Know Of It (In Other Words, Your Circle Of Knowledge)?

I believe that for most of you reading this, you’re not that well-versed in cryptocurrency investment yet.

If so…

Who do you believe, since there’re lots of so-called “experts” who give conflicting info?

When do you invest, since crypto-related trends are at the moment, largely unpredictable?

With whom should you invest, since some cryptocurrency firms in Singapore such as Torque and TenX were recently shut down due to legal complications?

If you’re confident that you have the right answers to those questions, and your circle of knowledge in cryptocurrency is wide enough, by all means… go ahead and invest.

You could potentially be making sky-high, money-spinning returns unheard of anywhere else!

But if you feel that your circle of knowledge isn’t broad enough to invest in cryptocurrency in a secure and profitable manner, then don’t.

Don’t risk it. Don’t jeopardize your hard-earned savings. Don’t gamble.

For me personally, I’m actively researching on cryptocurrency investment to become more knowledgeable on the topic.

If I feel I’m ready, then I’ll make the right decision to invest. 

That’s what I’ll be telling my students to do as well.

But For Those Who Want To Start Investing NOW…

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