Let's learn options trading together! Options is arguably "safer" than leveraged trading and I believe IF, only IF, Bitcoin crashes like March 2020, taking a long term call option that expires more than one year might be profitable. It requires less capital, and doesn't require your full attention, like HODLing.
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I definitely agree, but I was merely thinking if we are lucky to have another "golden-opportunity-crash" like what happened during March 2020, then I believe buying long term option calls with strike prices of $50,000 or more might be very profitable.
Honestly I lost money from margin and it is my painful experience. If there is risk of liquidation with option trading, I would like to say no with Option trading. Because I know that I can not manipulate the market and my prediction is not always accurate. If market moves negatively and down quickly and I don't control my position well enough, liquidation will knock me out.
There is no liquidation in options. All you lose is the investment you used to buy the option if it doesn't reach the strike price. I believe if the option is for 1 Bitcoin, the price of the option might be 10% of that or less. I haven't started course yet. But I have found a decentralized options exchange where you can buy a call or put option cheaply. It's in Ethereum though, which I have never used.
Let's learn options trading together! Options is arguably "safer" than leveraged trading and I believe IF, only IF, Bitcoin crashes like March 2020, taking a long term call option that expires more than one year might be profitable. It requires less capital, and doesn't require your full attention, like HODLing.
The course is by Deribit.
I am not promoting Deribit, nor have I traded in Deribit.
As for Deribit, it is a good and original derivatives exchange. It is the best for option trading. As for security ... well, relatively. Options are derivatives, and like any derivatives, they are dangerous for any unprepared trader. They can be less risky than trading with leverage on margin (although if you use adequate leverage no more than x2, then the issue of risks becomes not so relevant). But the trader needs a good understanding of how to trade options in general. Although I wouldn’t advise ordinary speculators to go there, ordinary spot trading is better suited for this.
Options are more used as a hedging tool.
Or a "golden opportunity tool" if there are long term options contracts that expires for more than one year. Buying a long term option contract, if there was one available during March 2020, with a strike price of $50,000 would have been a profitable investment for a small portion of your capital.
