The first method: 20 times contract long + put option hedging
1. Suppose you use 500 USD to open 20 times leverage to go long
2. At the same time, open 2 put options to hedge on BitOffer (cost of 100 USD)
When Bitcoin rises by $2,000, the increase is 5%
1. Go long with 20 times leverage and make 100% profit, which means you can earn 500 dollars
2. The put option loses the principal, which is $100
3. 500-10=400 USD (net profit)
When Bitcoin falls by $2,000, it is 5%
1. Do more with 20 times leverage, the contract will be liquidated and a loss of 500 US dollars
2. Put option profit is 4000 USD, option cost is 100 USD
3. 4000-500-100=3400 USD (net profit)
The second method: double open options
1. Open 2 call options at a cost of $100
2. Open 2 put options at a cost of $100
When Bitcoin rises by $1,000
1. Two call options earn $2,000
2. Two put options lose $100
3. 2000-100 USD = 1900 USD
When Bitcoin falls by $1,000
1. Two put options have a profit of $2,000
2. Two call options lose $100
3. 2000-100 USD = 1900 USD
When Bitcoin breaks through $40,000, using the above two methods, no matter whether Bitcoin continues to skyrocket or quickly hits the market, stable income can be obtained.