MrRenev
Education

How not to miss out AND not risk losing every thing? (Simple)

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
Are you worried Bitcoin might fall and want to sell?
Are you worried Bitcoin might fall, force you to sell at a loss, and then rocket ship up making you not only take a loss but miss the move?

I think Bitcoin is going to 3 digits, and if I was holding any I would sell.
But there is a 3rd solution. You can get all the upside, without having to hold bags all the way to zero if that happens.

Because I am really nice, I am going to give you a solution to both not risk taking a huge loss while at the same time not missing out if Bitcoin explodes up.

Uh? How is that possible? I believe most Bitcoin investors are not well versed in finance, and do not know this solution.

You have the ability to use options (not sure about EU citizens thought), this allows you to sell your Bitcoin at a set price in the future, regardless of what price Bitcoin is trading at. You could lock the price of 6500 for the next year say, giving you the right (but not the obligation) to sell at this price.
Of course they are not free, there is a premium.
If Bitcoin goes way up to 100,000, you will not sell exercise your right to sell at 6500, you might want to hold onto your Bitcoin , or sell them for 100k, you will lose the premium but that's all.
If Bitcoin crashes to 300 bucks, you are left holding bags, but you can sell them for $6500, and avoid losing all of your money.

I am not sure what the prices are now, back in June 7, 2017 you had the ability to purchase a put (right to sell) with a strike price of $2000 for 0.007 BTC .
You would take a loss but not lose all of your money.
Or the right to sell at 2700 for 0.05 BTC :)
Those were puts with an expiration date 22 days away. A longer expiration date will be more expensive.

If you were to buy a put for $5000 it would probably be pretty cheap I am guessing.
Kinda late to do that I feel thought. A $9000 put while the price was in distribution at 10-14k was the right choice.


https://www.investopedia.com/articles/in...

Once you have your option, you can sleep tight without a single worry. You know what your max risk will be and will not need to wonder "What if I sell and it goes up? What if I don't sell and it goes even lower?"

Disclaimer: I do not know if these options are safe or if the brokers offering them are reputable. Cryptocurrencies attract alot of criminals, and expect the worse to happen. Do not bet the house thinking you are 100% safe, especially if BTC goes to zero, those brokers might go under and not be able to honor your options. Do not risk too much in any case, that's all. Keep in mind that even with a protection, there is a small chance your will lose your entire stake anyway.


The biggest futures exchange in the world, the CME , great institution, is offering Bitcoin options in early 2020. That's as safe as you can get.

https://www.cmegroup.com/cme-group-futur...
Socialism is the philosophy of failure, the creed of ignorance, and the gospel of envy. It's inherent virtue is the equal sharing of misery. We will fight them on the beaches... ~ Winston Churchill
Anybody left? $9000?
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B.O.G.G.E.D
+1 Reply
MrRenev daddycool1
@daddycool1, Ye lol, this is the reason why I told people to not sell.
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passive aggressive

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