BitOffer Institute: BULL Awake, Bitcoin Options Comes Like a Bitcoin Printer
While the U.S stock market reached a new peak, and Dow Jones Index only was only one step away from the 30,000 mark, Bitcoin also kicked down the door and stepped in 17K Club. The price of Bitcoin refreshed the high in the past 3 years. Furthermore, $20,000 is almost a target that is able to touch soon. The bull runs have started in the worldwide financial market. During the period, Bitcoin Options played a role like a Bitcoin Printer.
First of all, after Bitcoin gave a breakout at $14,000, the upward rise space has been activated. The volume increased rapidly, and at the same time, bullish news like Grayscale continued buying bitcoins which already occupied 3% of the circulating supply of Bitcoins. The potential of investing Bitcoins has been to a place that the other assets cannot sway. Under the situation of that the Bitcoin price kept surging, the potential payoff of Bitcoin derivatives were increasing also, especially Bitcoin Options.
According to the data on BitOffer, the most renowned Bitcoin Options Exchange, since March, the number of options traders has remained a gradual but fast-growing uptrend for 8 months. During that time, the daily options trading volume on BitOffer pumped from 50 million USD to 300 million USD while the daily active users already reached 100,000. After the “Black Swag” on March 12th, the whole market holds a bullish attitude on Bitcoin. In addition, due to the Bitcoin halving stimulated the market, the trading volume of Bitcoin Call Options climbed to a new peak ever.
As we all know, buying Bitcoin Options means that the investors would own the right of holding bitcoins because each Bitcoin Options contract needs a Bitcoin to be underlying. In this way, supporting an options exchange requires huge capital. Options can be divided into European Options and American Options as the rules are a little bit different. European Options only allows investors to exercise the options contract when the settlement date comes. However, in American Options, investors can be able to close the order to take profits anytime as they like. Thus, American Options is much more flexible to earn profits in such a volatile market (BTC).
BitOffer Options is the first Bitcoin American Options which requires 0 margin and 0 fees. It does not require investors to exercise the options contracts but still provide a possibility to let users earn 2,000X profits. Without a liquidation mechanism, either the bear market or the bull market, investors can both earn thousands of profits from the market. In addition, the purpose of launching Bitcoin Options is to provide the best hedge tool for investors to reduce the risks while trading Bitcoin.
1. How am I Possible to Earn Thousands of Profits from Bitcoin Options?
For example, now the Bitcoin price is $16,000.
Buying a Bitcoin needs $16,000.
Buying a 1-hour Bitcoin Call Options contract only needs $10.
Within an hour, Bitcoin Options, the Bitcoin price rises from $16,000 to $16,500, both of them give $500 as profits. However, the budget has a 25 times difference. And when the plunge happens such as the black swag on March 12th, Bitcoin dumped by $1,800 within an hour, the profits of a 1-hour put option would be $1,800. What amazing is that Bitcoin Options on BitOffer is trading that enables users to earn the market change directly. One thing that investors only need to do is to predict the market direction in the future.
2. Arbitrage from Bitcoins by hedging the risk of hold bitcoins:
For example, Bitcoin presented a breakout at $17,000, and you could not predict the market direction in the next period. At this moment, you could open a 1-hour put options contract to hedge the bitcoin you held. The budget only cost $10.
Within an hour, if the Bitcoin price pumps from $17,000 to $17,500, you would earn $500 from the Bitcoin you hold, and lose $10. The total net profits would be $490.
What if Bitcoin dumps?
If the BTC price dumps from $17,000 to $16,500, you would lose $500 on the Bitcoin but earn $500 from the Bitcoin Options contract you bought on BitOffer.com. In this way, the loss of Spot trading has been hedged.
3. Arbitrage Strategy to Earn Profits from Futures Trading Platform such as BitMEX, Binance, Bybit, etc.
Now the Bitcoin Price is 15,000 USDT,
And I open 20X long bitcoin with 500 USDT,
At the same time, I buy 2 BTC Put Options contracts, the total cost is $40.
In an hour, there will be 2 situations:
1. If Bitcoin pumps from $15,000 to $15,750, it rises by $750 (+5%),
My 20X Long Bitcoin Futures will get me $500 as profits!
And I only lose $40 that I used to buy put options contract.
In sum, my net profits will be $500-$40=$460
2. If Bitcoin dumps from $15,000 to $14,250, it drops by $750 (-5%),
My 20X Long Bitcoin Futures will be liquidated, and I lose $500.
However, I will earn profits from the 2 put options contract I bought:
[2*( $15,000-$14,250)] — $40 — $500=$960
Overall, as the Bull has come, based on the features of BitOffer Bitcoin Options, to make sure your assets can gradually grow in a rapid way, BitOffer Options shall be the best hedge tool and trading product ever.