How do I trade Bitcoin ?

Discussion in 'Crypto Assets' started by Wallace, Jan 25, 2024.

  1. I am expecting a large move down and want to profit from that move
    no Options, what is available, most efficient trading method (futures for eg with the ES)
    and what is the cost to make that particular trade.
     
  2. maxinger

    maxinger


    Ask @expiated.

    He is highly experienced with close to 50 journals.
     
  3. zghorner

    zghorner

    CME BTC futures offer 4x leverage. I know there are other places that offer much more but not sure how trustworthy they are.
     
  4. RedDuke

    RedDuke

    I think you can short ETFs from tomorrow, and of course CME futures.

    what is your reasoning?
     
  5. deaddog

    deaddog

    ProShares Short Bitcoin Strategy ETF (BITI)
     
  6. It's good to know that this doesn't actually do the opposite of BTC over longer than a day. Good explanation in their prospectus. Possible that BTC is lower a month after you bought it and you still lose money. Also the opposite.
     
  7. deaddog

    deaddog

    It's pretty close.

    upload_2024-1-25_8-20-23.png

    The cost of trading is nothing if you have a zero commission broker.
    The downside is you can't trade 24/7; only when the market is open.
     
    zghorner likes this.
  8. BKR88

    BKR88

    Your chart shows BITO, not BITI.
    BITI isn't too far off though over a year when looking at "Total Return".
    Looking at "Price" comparison the difference is wider.



    bito.jpg bito.2.jpg
     
  9. So we're talking about BITI, the inverse fund, not BITO, which should track pretty close like you said. Given they call BITI a short fund you'd be forgiven for thinking it did the opposite of BTC, but it doesn't over time, just for 1 day. Here's an example, you buy BITI on 6/22/22 thinking BTC will go down by 16% by EOY so you'll be up 16% right? Wrong, you're actually down .13%! It can do the opposite too, sometimes BTC will go up 5% and BITI will also go up 1% over a space of a few weeks.
    upload_2024-1-25_12-43-43.png

    Its all just math, check out summary prospectus page 5 BITI | ProShares Short Bitcoin Strategy ETF | ProShares second column

    upload_2024-1-25_12-51-55.png

    upload_2024-1-25_12-49-9.png
     
    deaddog likes this.
  10. deaddog

    deaddog

    You are correct BITI and you're right it is not a good long term hold.
    The OP expects a sharp drop. Short term it is a reasonable way short BTC. You will have to hold longer than a day and expect gaps because of the time frame they trade in.
    It's a simple way to trade BTC without having to open another account with a crypto exchange.
     
    #10     Jan 25, 2024