What Is Time Decay in Crypto Trading?

Time decay in crypto trading refers to the decrease in the value of an option as time passes. It is also known as the "theta" in options trading. The rate of time decay accelerates as the option's expiration date approaches. A practical example of time decay in crypto trading would be an investor buying a 1-month call option on a cryptocurrency with a strike price of $10,000. Suppose the cryptocurrency's current price is $9,000, and the investor believes it will…