[Daily Discussion] - Wednesday, June 30, 2021 Bitcoin Markets |
| [Daily Discussion] - Wednesday, June 30, 2021 Posted: 29 Jun 2021 09:00 PM PDT Thread topics include, but are not limited to:
Thread guidelines:
Other ways to interact: Get an invite to live chat on our Slack group [link] [comments]  |
| Why every HODLer really really needs to learn to trade crypto options! Posted: 30 Jun 2021 06:48 AM PDT TL;DR: Buying far out of the money puts as insurance against big market drops + writing covered calls or selling puts as a yield enhancement strategy. I see a lot of people whining day in day out about the current sideways market we are seeing in BTC and other cryptos while speculating about the support and resistance levels. Instead of just watching this market go nowhere and speculate about these levels, did you know you can actually make money out of this kind of market and also learn protect yourself if there's another dip? I wanted to write a more lengthy and detailed write up as to why fellow HODLers should use futures and options to both hedge (protect from market drops) their crypto investments and use yield enhancement strategies (generate income while HODLing) but I'm a bit short on time these days so I thought I would just put this out there and hopefully others can chime in. Time permitting I will try to write something up in the coming weeks. Derivatives, options and futures can seem quite daunting and you can quickly get overwhelmed with the language and technical speak. If I can offer one piece of advice is to try to keep it simple - as soon as it gets too complicated just drop it and go back over the basics and something you understand. It could take years to become a specialist option trader and most of you probably don't have the time or willingness to do so. I would also add that practice makes perfect - there's a lot of theorising in option trading guides and it becomes very abstract. Having a hands-on approach you will learn just as much as what any book can teach you. In other words, start small, pay attention and see how prices move and. Obviously if you have the time and interest to take it further and develop a passion for options then there are tons of books, guides, blogs out there. If you want to start looking at options I use two exchanges OKex and Deribit. I love the OKex app as it's easy to use and has a great layout so it's my got to app for futures / options prices and doing market research but I actually put all my trades through Deribit because it has the biggest market share in the crypto option space so has tighter spreads (prices) but the app is basic and doesn't give you much else other than prices. As HODLers we are in the best position to write covered calls (this is what all the most conservative and biggest asset managers and pension funds do to generate additional income) so this is a strategy you really want to look into. Additionally you can also try to learn about selling puts. The second benefit about learning about options is to buy yourself some insurance. We would have all benefited from having some insurance when the market went from 60k to 30k. Buying some far out of the money puts will give you that insurance and you might even be able to get it for free since you will be paying for it using the money generated from the yield enhancement strategies. Please feel free to post as many questions as possible as this will help me make a more lengthy write up later on and I'm sure others with knowledge on the subject can expand as well. edit: typo [link] [comments]  |
| You are subscribed to email updates from Sharing of ideas, tips, and strategies for increasing your Bitcoin trading profits. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States | |
No comments:
Post a Comment