U.S. stocks hit a record high overnight, and the Dow Jones index is only one step away from the 30,000 mark! Bitcoin, known as digital gold, is not to be outdone, breaking through the $17,000 mark in one fell swoop, setting a new high in three years, and BTC is close to the historical high of $20,000! It seems that various capital markets around the world are in a bull market, and it is getting more and more intense! Only, except for A shares. In the bull market, Bitcoin options have become the strongest money printing machine.
First of all, since Bitcoin broke through 14,000 US dollars, it has officially opened up upward space, and the market volume has increased sharply. Coupled with the continuous buying, buying and buying of gray funds, the total holding share has accounted for 3% of Bitcoin in circulation. The overall investment score has surpassed that of gold. With the continued positive support, the price of Bitcoin continues to rise, and the potential income of derivatives continues to increase, especially Bitcoin options.
According to data from BitOffer, the world's largest Bitcoin options exchange, since March this year, investment options users have grown rapidly for 8 consecutive months, with daily trading volume increasing from 50 million US dollars to 300 million US dollars, and daily active users even breaking through to 10. Ten thousand +, and after the 312 plunge, the market's bullish sentiment has continued to heat up, and the expectation of halving has been superimposed, and investors have bought bitcoin call options.
We all know that BTC option is equivalent to a bitcoin spot equity. The product has the same amount of underlying assets behind it. The operation of options requires huge financial support. Therefore, only powerful derivatives exchanges will list options. Options can be divided into European options and American options according to different exercise methods. European options can only be exercised on the option exercise date, while American options do not need to be exercised on the exercise date and can be exercised and closed at any time. American options are more important in terms of time. Flexible and more diverse gameplay.
BitOffer is the world's first Bitcoin American option. The option has zero margin, zero handling fee, no exercise, up to 2000 times leverage, but no liquidation mechanism! The biggest feature is that regardless of the bull market or the bear market, there is a chance to obtain up to a thousand times of excess returns. The purpose of introducing bitcoin options is to provide investors with precise hedging and additional trading tools, reducing trading risks and increasing returns and returns. Winning percentage.
1. The option income is as high as 1,000 times
For example, when the current price of Bitcoin is $16,000
Buy a Bitcoin spot, the cost is 16,000 US dollars
Buy a 1-hour call option on Bitcoin at a cost of $10
Within 1 hour, Bitcoin rose from 16,000 US dollars to 16,500 US dollars. Buying a bitcoin spot earns 500 US dollars. Buying an option also earns 500 US dollars. The income is 25 times the cost. If on August 2nd, Bitcoin plunged by 1,400 U.S. dollars in one hour, a put option would have earned 1,400 U.S. dollars, and the return was as high as 140 times. If Bitcoin's short-term rise and fall are large enough, the return can be as high as a thousand times. This is the feature of options with small gains, limited risks and unlimited returns.
2. Hedging spot risks and realizing risk-free arbitrage
For example, when Bitcoin breaks through $17,000, you cannot judge the next market trend. At this time, you can open a put option for risk hedging at a cost of only $10.
In one hour, if Bitcoin rises from 17,000 US dollars to 175,000 US dollars, the spot makes 500 US dollars, the option loses 10 US dollars, and the final profit is 490 US dollars.
In one hour, if Bitcoin drops from 17,000 US dollars to 16,500 US dollars, the spot loss is 500 US dollars, and the option gains 500 US dollars, this will offset the risk.
3. Hedging contract risks and achieving 100% winning rate
For example, the current price of Bitcoin is $10,000
1. Suppose you use 100 USD to open 20 times leverage to go long
2. Open 2 put options to hedge at the same time on BitOffer (cost of USD 40)
3. An option is equivalent to holding one bitcoin. The option will not be liquidated, will be automatically settled at expiration, and the position can be closed manually in advance.
First, when Bitcoin rises by $500, the increase is 5%
1. Do more with 20 times leverage and make 100% profit, which means you will earn 100 dollars
2. The put option loses the principal, which is $40
3. 100-40=60 USD (net profit)
The second type, when Bitcoin falls by 500 US dollars, the drop is 5%
1. Long with 20 times leverage, contract liquidation and loss of 100 USD
2. The put option profit is 1,000 US dollars, and the option cost is 20 US dollars
3. 1000-100-40=860 USD (net profit)
After the contract is opened, the option hedging is started again. In the end, no matter what, he can achieve stable profits.
Through the above example analysis, whether it is risk or return, options are obviously better than spot and futures, and are more suitable for investors. Especially in the bull market, it is undoubtedly the strongest money printing machine in the digital currency field.