Futures Trading Is Not the Only Profitable Option in the Current Market
In the current market, many people choose to make a futures trade, which brings both high returns and the risk of liquidation. However, futures trading also requires a high level of knowledge, so you must learn to set profit, stop loss, position management, and so on, which is at least at first difficult to learn for new investors or spot investors.
In the view of spot traders, they can sell high and buy low during market ups and downs, and they don’t panic if they have crypto in their possession. However, when extreme market conditions arise, they sometimes want to give alternatives a try in addition to waiting for their token portfolio to rise again. During these times, leveraged ETFs are also a good choice.
There are SHIB, BNB, DOGE, ADA, and many other prominent cryptocurrencies to choose from in BigONE’s leveraged ETF system. The most important aspect is that it can provide you with three times the leverage. Let’s look at the performance of leveraged ETFs using BTC3L as an example.
In the case of two consecutive rises, leveraged ETF products outperformed ordinary open three times leverage to buy BTC perpetual futures (3BTC). The calculation for growth is as follows: BTC rose from $200 to $210 on the first day. Width +5%. The net value of BTC3L is $200 (1+5% 3) = $230; the next day, BTC rose from $210 to $220, a +4.76% increase or decrease. The net value of BTC3L is $230 (1+4.76% 3) = $262.84; the rise and fall of leveraged ETF products in two days is: ($262.84-$200)/ $200*100% =31.4% >30%.
In a market decline, the loss of leveraged ETFs will be less than that of futures. Similarly, BTC fell 5% on the first day, and the net value of BTC3L became: $200 (1–5% 3) = $170; on the second day, it fell -5.26%, and the net value of BTC3L became: $170 (1–5.26% 3) = $143.17; the total rise and fall of leveraged ETFs within two days is: ($143.17-$200)/ $200*100% = -28.4% < -30%.
As a result, leveraged ETFs are ideal for spot traders in the current market, with the additional benefit that operation is relatively effortless and straightforward.
Furthermore, current market conditions are highly beneficial for leveraged ETF transactions. The BTC has still not recovered from the massive blow suffered last week. At the time, the BTC price had dropped from $57,000 to $42,000. A 26.5% drop resulted in liquidating $850 million long BTC futures. More importantly, it lowered the Fear and Greed Index to its lowest point since July 21.
According to CryptoQuant data, fewer than 2.27 million bitcoins are stored on exchanges, and the number of bitcoins available for trading has decreased, indicating that investors are hesitant to sell in the short term.
On December 10, the actual number of effective calls and put option futures fluctuated depending on the BTC price at expiration. In theory, an imbalance that benefits one side will result in profit:
The net value indicates that the short position has a $300 million advantage between $47,000 and $50,000: 400 call options vs. 6,600 put options.
Between $50,000 and $54,000, there are 1,700 call options and 4,700 put options. According to the net worth, the short position has a $160 million advantage.
Above $54,000, there are 2,400 call options and 2,900 put options. The net worth shows that the short position has a $30 million advantage.
In simple terms, the bears appear to have a high probability of retaining their advantage when the weight of this cycle expires.
Under these extreme market conditions, you can profit from purchasing BigONE leveraged ETFs as well as participate in BigONE’s ETF activities this week.
The activities’ content is straightforward: during the event, participants can use any currency to conduct ETF transactions and participate in the sharing based on the volume of ETF transactions. In addition, individuals can receive a minimum of 3 USDT as part of the 5000 USDT rewards, on a first come, first served basis!
Activation time: December 10th 00:00-December 17th 24:00 (GMT+8), don’t miss it!