Bitcoin contract hedging * risk-free arbitrage

Bitcoin contract hedging strategy: long position + put options +

1. Use 10,000 US dollars to open a 5x leverage long position

2. Open 1 put option for hedging, about 500 US dollars

The latest price of Bitcoin is 66,000 US dollars

The first case is if BTC rises by 2%, which means 1,320 US dollars

1. Long position with 5x leverage, profit of 1,000 USD

2. Loss of principal on put options, which is 500 US dollars

3. Close the options early, getting back 40% of the premium (about 200 US dollars)

The second case is if BTC drops by 2%, which means 1,320 US dollars

1. Long position with 5x leverage, floating loss of 1,000 US dollars

2. Profit from put options is 1,320 US dollars

3. 1,320 - 1,000 = 320 US dollars

Note: Whether BTC rises or falls, profits can be realized

A big player with 40 million income from ten years in the crypto world tells you what to pay attention to in the crypto space!

In fact, once you figure out trading cryptocurrencies, life feels like it's enlightened!

Ten years ago, when I first entered the crypto world, like most retail investors, my losses and profits seemed to depend entirely on luck, and I couldn't grasp any patterns.

However, after spending a few years in the crypto world, through continuous learning and absorption, along with constant sharing and guidance from mentors and seniors, I finally started to understand and form my own investment system!

Today, I will share my trading strategies and insights with friends in the crypto world.

When I first started trading cryptocurrencies, I stayed up all night watching the charts and chasing highs and lows, losing sleep over my losses. Later, I insisted on using a simple method, and surprisingly, I survived and gradually started making consistent profits.

Looking back now, this method, although simple, is effective: "If I don't see familiar signals, I absolutely won't move!"

Better to miss the market than to place an order recklessly.

With this iron rule, I can now maintain an annual return rate of over 70%, and I no longer have to rely on luck to survive.

Here are a few life-saving tips for beginners, all based on my real trading experiences:

1. Make trades after 9 PM

During the day, the news is too chaotic, with various false positives and negatives flying around, causing the market to jump around like it's having seizures, making it easy to get tricked into the market. I usually wait until after 9 PM to operate; by then, the news stabilizes, the K-lines are cleaner, and the direction is clearer.

2. Look at the indicators, not feelings

Don't trade based on feelings

Before placing an order, check these indicators:

• MACD: Is there a golden cross or a death cross?

• RSI: Is there overbought or oversold?

• Bollinger Bands: Is there a contraction or a breakout?

At least two out of three indicators must give consistent signals before considering entering the market.

4. Stop-loss: Dignity is more important than money

⛔️ "If the direction is wrong, cut it immediately; hesitating for a second means losing 10%"

• Fixed stop-loss method: 3% of the principal is the red line

• Dynamic stop-loss method: Must exit after a 20% pullback when floating profit reaches 50%

5. Withdraw on time every week

For example, if you earned 10,000 U this week, don't always think about doubling it! I suggest you withdraw 4,000 U to your bank account immediately and continue playing with the rest.

I've seen too many people who 'made 3-5 times' their investment, only to lose it all in a single pullback. The rest can continue to roll over. Over time, this way, the account will keep growing.

6. There are tricks to reading K-lines

• For short-term trading, look at the 1-hour chart: if the price has two consecutive bullish candles, consider going long. #Bitcoin and US tariff policy

• If the market is moving sideways, switch to the 4-hour chart to find support lines: consider entering the market when it drops near the support level.