The intention of this strategy is to protect your investment when Bitcoin falls significantly, while profiting when it rises.

The intention of this strategy is to protect your investment when Bitcoin falls significantly, while profiting when it rises.

How much can you protect?

You can protect 100% to 50% of your capital according to your risk tolerance. The more you want to protect, the fewer gains you will realize when the market goes up. That is the price you have to pay for the safety of your investment. For example, let's assume you want to protect 100% of your investment, which is $1000. After one year, if Bitcoin is down 90% your portfolio will be worth around $1000 but if Bitcoin doubles in price your portfolio will be worth $1060, a 6% risk-free gain. If you want to increase your risk and only protect 90% of your capital, your portfolio will be worth around $910 after one year if Bitcoin is down 90%, but $1260 if Bitcoin doubles in price, a 26% gain.

These gains will grow exponentially when the option market in crypto matures.

How to best use this?

If you see Bitcoin’s history, then it has had only 2 negative years in its 13 years of history. That means you have a 84.6% chance of earning gains with very low risk if you do it consecutively for 5 years.

How does this work?

Your capital is deployed in fixed income staking, spot markets and options markets to create the play.

What is the risk?

The only risk is if stablecoin USDT goes to zero.