BitOffer: Fires in the Middle East, How to Maximize Your Profits in Bitcoin Trading?

BitOffer
BitOffer English
Published in
3 min readJan 8, 2020

Recently, as the strife between Iran and the U.S. happened in the Middle East, the gold prices boosted sharply while the risk-aversion strongly grew. What matters is that how should we manage our investment in this situation so that we can gain a considerable profit. The financial industry always regards gold as safe-haven assets when turbulent.

The gold price would absolutely continue climbing if the turmoil in the Middle East gets more serious. Obviously, the investment of gold is not able to satisfy the demand of the market. Besides gold, the other most benefited safe-haven asset is Bitcoin. The markets have come up with the statements that bitcoin and gold always present uptrends one by one all the time. Even though actually these two investments do not matter each other, but their movements are similar. These days, the bitcoin price has broken pressure continuously. Now the bitcoin price has reached $8,500, which seems that it possibly aims at $10,000.

Thus, how should we manage our Bitcoin Trading?

To most investors, spot trading is always the first choice because it is unleveraged and has no limit to its period. Besides, the 3rd halving of bitcoin is upcoming in 2020. In retrospect, the bull market showed up after the last 2 halvings of bitcoin completed. So, buying bitcoin on the spot trading market is a good choice.

Futures trading is also popular with some experienced investors. In futures trading, investors can long or short bitcoins with leverage which can be up to 100X. In this way, the profit and the risk can be magnified to 100 times. With greed desire, some experienced investors prefer bitcoin futures trading. However, according to figures, only 30% of the users who trade bitcoin futures earned profits from it. Therefore, we can easily see that most futures investors are losing since futures trading is much more profitable but riskier.

Besides spot trading and futures trading, we can also take Bitcoin Options as our choices. Bitcoin Options is essentially the same as bitcoins on spot trading. But investors only need to pay a premium in a small amount to own a bitcoin temporarily. Moreover, Bitcoin Options has the same feature of “Buying Long or Short” as the futures trading.

As Bitcoin Options is similar to Bitcoins on spot trading, it would be better if I make a comparison:

Let’s take BitOffer BTC Options, the first and the most innovative bitcoin options without any fees, any margins, and any exercise request, as our example:

1. Buy a bitcoin with $8,500 on the spot trading market;

2. Buy a bitcoin options contract with $5;

When the bitcoin price rises from $8,500 to $9,000, both of them help investors earn $500; The profit is the same, but the rate of return of bitcoin options is 1,700 times to buying bitcoin on the spot trading market.

Last week, the bitcoin price rose from $7,300 to $8,500, if you bought a 7-days CALL (which expects the price to rise) options contract, you would earn $8,500-$7,300=$1,200. After comparing with the other trading, we can conclude that Bitcoin Options has the advantages: 1. Low budget request 2. Low-Risky 3. High-Profit

That is how options works. With a premium in a small amount, the investors can be able to earn the same profit as a bitcoin holder.

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