Are you afraid of DeFi? Here’s how you can earn a 41% return on Bitcoin without „wrapping it up“

The returns from decentralised finance are incredibly attractive, but option markets can also offer similar returns for those willing to take risks.

The number of investors interested in yield farming grew enormously over the past 6 months as decentralised finance (DeFi) applications became more popular and easier to use.

This has led us to see a countless number of liquidity pools offering an annual percentage yield (APY) in excess of 1,000% and how the total value locked in DeFi contracts increased to billions of dollars.

Bitcoin investors who wanted a piece of this huge pie were able to participate in DeFi’s yield farming by converting their BTC into tokenised versions such as Wrapped BTC (WBTC) and RenBTC (RENBTC).

This allows BTC holders to interact with all ERC-20-based tokens, but some analysts question how decentralised Bitcoin custody is behind these offerings; therefore, it makes sense to explore more centralised solutions.

Although it’s impossible to directly achieve the performance of Bitcoin deposits (BTC) on these DeFi platforms, investors can still benefit from centralised services. While it’s unlikely to find APYs above 12%, there are at least more secure ways to get a return with Bitcoin ‚uninvested‘.

Centralised services such as Bitfinex, Poloniex, BlockFi and Nexo will typically yield between 5% and 10% annually for BTC and stablecoins deposits. To increase the payout, it is necessary to look for more risk, which does not necessarily mean a lesser known exchange or intermediary.

By trading BTC options on the Chicago Mercantile Exchange (CME), Deribit or OKEx, an investor can comfortably achieve returns of 40% or more.

The hedged call strategy has its risks

The buyer of a call option can purchase Bitcoin at a fixed price at a set future date. For this privilege, this buyer pays in advance to the seller of the call option. Although the buyer can usually use this instrument as insurance, sellers primarily earn a fixed income from trading options.

Each contract has a predetermined expiry date and exercise price, so potential gains and losses can be calculated in advance. This so-called hedging strategy involves holding Bitcoin Bonanza Review and simultaneously selling the equivalent size in call options.

It would be unfair to call it „fixed income trading“ because potential losses are incurred whenever there is a more substantial price drop at the expiration of the options. However, this risk can be adjusted while the trade is being set up. It is worth noting that limiting exposure will result in lower returns.

The chart above represents a hedged call strategy for next November’s maturity, with a yield of 6% profit in two months, equivalent to an APY of 41%. As mentioned above, the hedged call strategy may incur losses if the BTC price at maturity is lower than the strategy’s threshold level.

Although the 6% return is achieved by selling call options from 0.5 BTC to USD 9,000 and 0.5 BTC to 10,000, the strategy requires BTC to remain above USD 10,000 at maturity on 27 November to achieve that profit margin. Any level below USD 8,960 will result in a loss, but that’s 16.6% below the current Bitcoin price of USD 10,750.

By selling these call options, investors will get 0.1665 BTC (USD 1.957 at today’s price); therefore, the covered call investor must purchase the remaining 0.8335 BTC (USD 9.793) through the regular futures spot markets. However, if the buyer is unwilling to take this risk, it is possible to lower the loss threshold.

It is worth noting that most derivatives exchanges allow exchanges of options starting from BTC 0.10, with the only exception being CME.

An APY of 25% can be achieved by selling November call options from 0.5 BTC to USD 8,000 and 0.5 BTC to USD 9,000. By reducing expected profits, you will only face negative results below USD 8,370 for the 27 November maturity, 22% below the current spot price.

Note how the net gain of USD 313 stabilises above the USD 9,000 result. To achieve this balance you need to buy USD 8,187 worth of BTCs either through futures or regular spot markets. The call option premium will increase the remaining 0.303 BTC (USD 3,257), but only the seller of the option is paid in advance.

Implied volatility drives gains in covered calls

Implied volatility is the main indicator of risk in the options markets and it increases as traders perceive a greater risk of sudden price movements. This indicator will increase regardless of investor optimism, as volatility is based solely on absolute price changes.

A constant daily loss of 4% over a few weeks results in extremely low volatility, which would be the same as a fixed daily gain of 4%. Volatility will increase in periods of extreme uncertainty; therefore option sellers will demand a higher premium.

As Skew’s data shows, the implied volatility of 3-month BTC options is currently 59% annualised. Although relatively low, this is still sufficient to provide an APY of 41% using a covered call strategy.

Investors may benefit from higher expectations, but the risk of loss using hedged calls also increases. This reflects traders‘ fears of unexpected price swings; therefore, higher implied volatility indicates a greater likelihood of a maturity price below the profit threshold of the option strategies.

All investments have some degree of risk

All passive return strategies have built-in risks. While it is possible to use a stop loss on a strategy called hedged, it should be noted that the options markets can be reasonably illiquid during sharp swings in BTC prices. This means that it is important here never to close out spot futures or positions independently of options.

DeFi can have its appeal, and even if one is willing to accept the risks associated with BTC wrapping, there are questions about faulty smart contracts, possible DeFi protocol violations, stagnation in the Ethereum network during peak traffic times and rising commissions which can reduce profits and increase losses. Outside of individual pools and DeFi applications, there is also room for manipulation of an oracle’s price source, which can cause cascading settlements.

The main advantage of the call cover strategy is that it allows investors to establish their own appetite for risk and have a clearer picture of their potential gains.

By opting for centralised solutions, investors can avoid high gas fees and the risk of being overtaken by the richer or more knowledgeable DeFi farmers.

Bitcoin dispara a 10.800 dólares: Esto es lo que los analistas piensan que viene a continuación

Bitcoin se ha recuperado después de un fuerte descenso a principios de esta semana.
Después de caer por debajo de 10.200 dólares hace poco más de un día, la cripto-moneda ha vuelto a subir por encima de 10.500 dólares.
La moneda ahora se cotiza a 10.800 dólares, habiendo experimentado un fuerte repunte hace unas pocas horas.
La moneda ha subido alrededor de un 5% en las últimas 24 horas, subiendo a medida que la subida del dólar americano comienza a disminuir.
Algunos atribuyen el repunte a un vencimiento en curso en los mercados de futuros y opciones, lo que probablemente provoque que los operadores abran y cierren posiciones.
Sea cual sea el caso, los analistas están intentando determinar qué es lo que viene después para Bitcoin.

Move liquida millones en posiciones de Bitcoin

El reciente movimiento alcista de Bitcoin Up ha resultado en millones de dólares de liquidaciones en el mercado de futuros para BTC.

Según Skew.com, se han liquidado alrededor de 12-15 millones de dólares en las últimas 24 horas debido al movimiento alcista. Estas son estadísticas sólo para el mercado de futuros de BitMEX. Esto sugiere que probablemente hubo docenas de millones más liquidados en otras plataformas de futuros y con otras criptodivisas como el Etéreo.

Los datos de ByBt sugieren que la bomba no ha dado lugar a un sobreapalancamiento en ninguno de los dos lados de los mercados de futuros.

Todos los principales mercados de futuros de Bitcoin, incluyendo BitMEX, OKEx, Huobi, y ByBit, todos tienen tasas de financiación neutrales por el momento. Esto sugiere que el precio del futuro se negocia alrededor del precio spot, lo que consolida aún más la idea de que ninguno de los dos lados está sobreapalancado.

Esto significa que Bitcoin podría continuar subiendo de forma sostenible, siempre que el movimiento esté impulsado en gran medida por el precio spot.

Al alza mientras BTC retoma los niveles clave

Los analistas dicen que el reciente movimiento alcista fue una ruptura alcista, en oposición a una repetición bajista de la resistencia.

Un analista compartió el siguiente gráfico, señalando cómo el reciente repunte puede llevar a Bitcoin por encima de un nivel de tendencia crucial de alrededor de 10.550 dólares. El hecho de que Bitcoin vuelva a tomar este nivel a diario puede sugerir que la tendencia predominante es alcista.

El gráfico muestra que la criptodivisa llegó a ese nivel exacto en dos ocasiones durante el año pasado, lo que sugiere que es un punto al que hay que estar atentos.

Bitcoin está preparado para retomar ese nivel porque en el momento de escribir este artículo, una hora antes del cierre diario, la cripto-moneda está situada casi 300 dólares por encima de ese soporte.

Ripple verdrahtet 133 Mln XRP an Jed McCaleb

Ripple verdrahtet 133 Mln XRP an Jed McCaleb zusammen mit der Sperrung von 800 Mln XRP zurück in Escrow

Jed McCaleb erhält einen weiteren atemberaubenden XRP-Klumpen von Ripple, während die Blockkette Decacorn 800 Mio. auf einem Treuhandkonto bei Bitcoin Revolution verwahrt und 106 Mio. XRP an seinen ehemaligen CEO überweist. Gemäß seiner jüngsten Tradition hat Ripple am 1. September eine Milliarde XRP aus dem Treuhandkonto freigegeben, und jetzt hat es laut Whale Alert fast alles zurückgeschickt, um es zu sperren.

Außerdem hat der Blockketten-Riese eine weitere saftige Zahlung an seinen Mitbegründer Jed McCaleb, der nicht mehr zu Ripple gehört, geleistet und ihm 133 Millionen XRP geschickt.

Ripple sperrt 800 Mio. XRP ein.

Am ersten Tag eines jeden Monats setzt der Blockchain Decacorn Ripple 1 Mrd. XRP frei. Zuvor hatten sich einige in der Gemeinde darüber beschwert und spekuliert, dass diese regelmäßigen „XRP-Dumps“ verhindern, dass die Münze bis zu ihrem ATH 2018 aufholen kann – als die Münze im Januar 3,23 $ erreichte, bevor sie anfing, zu sinken.

Vor kurzem begann Ripple jedoch damit, achtzig Prozent des freigegebenen Betrags auf ein Treuhandkonto zurückzugeben. Daher wurden diesmal, nachdem 1 Mrd. XRP freigegeben worden war, 800 Mio. wieder dorthin zurückgeschickt, wo sie herkamen.

Laut Ripple werden diese XRP-Klumpen jeden Monat aus dem Treuhandkonto genommen, um das hohe Interesse an Investoren aufrechtzuerhalten und die konsequente Verwendung von XRP zu unterstützen.

Alles in allem plant Ripple die Freigabe von 55 Milliarden Münzen in Höhe von einer Milliarde pro Monat. Gegenwärtig beläuft sich der Gesamtbetrag von 1 Mrd. XRP auf 280.657.558 Dollar.

133 Mio. XRP an McCalebs Brieftasche überwiesen

Whale Alert hat auch berichtet, dass Ripple 133.152.655 XRP (im Wert von 38.896.812 $) an seinen ehemaligen technischen Leiter Jed McCaleb überwies, der bei der Gründung der OpenCoin half, die später in Ripple umgewandelt wurde.

Der Blockkettengigant schickt diese Zahlungen als Teil der Vergleichsvereinbarung nach seinem Rücktritt regelmäßig an McCalebs „Tacostand“-Brieftasche. Indem er ihn für seine Rolle als Mitbegründer von Ripple in solchen Stücken entschädigt, verhindert er, dass McCaleb seinen XRP laut Bitcoin Revolution auf den Markt drückt und noch niedriger als jetzt abstürzt.

Chris Larsen und Ripple verschieben 106 mln XRP

Laut XRPL-Monitor wurden in den letzten vierundzwanzig Stunden 69,2 Mio. XRPL aus mehreren Ripple-Brieftaschen verschickt.

Insgesamt 37.499.900 XRP wurden vom ehemaligen CEO Chris Larsen verschoben. Außerdem erhielt er 17 Mio. XRP von einer anonymen Adresse in seine Brieftasche.

EIS PORQUE OS ANALISTAS PERMANECEM EM ALTA DEPOIS DE O BITCOIN TER CAÍDO ABAIXO DOS 12.000 DÓLARES

  • Como relatado anteriormente pela Bitcoinist, a Bitcoin sofreu uma correção após atingir um pico acima de $12.400 na segunda-feira.
  • Desde então, a moeda criptográfica sofreu um recuo, caindo em paralelo com o preço do ouro. BTC agora negocia a $11.800 a partir da escrita deste artigo.
  • O BTC permanece abaixo do nível horizontal central de $12.000, que atuou como suporte e resistência em várias ocasiões ao longo das últimas semanas.
  • A correção do bitcoin inicialmente chocou os touros.
  • Mas o sentimento positivo retornou rapidamente ao Crypto Twitter, com muitos pedindo por um retorno aos níveis acima de $12.000.
  • Eles citam uma confluência de tendências técnicas e fundamentais, sugerindo que a tendência de alta está intacta.

A TENDÊNCIA DE CRESCIMENTO DO BITCOIN ESTÁ INTACTA? MUITOS ANALISTAS PENSAM QUE SIM.

Apesar dos danos técnicos que o Bitcoin sofreu após ter caído abaixo dos 12.000 dólares, os analistas continuam otimistas sobre as perspectivas da principal moeda criptográfica.

Um analista compartilhou o gráfico abaixo após o pior da correção. O gráfico mostra que o Bitcoin realmente saltou de uma tendência de alta diagonal que tem se mantido desde o final de julho. O nível se estende de volta a 11.000 dólares.

„Parece que a procura de $BTC ainda está em tacto. Preço abaixo desta diagonal a ser comido. Óptimo ponto de falha para mais pontos negativos, dada a validade da linha.“

BTC mantendo este nível sugere que permanece em uma formação de triângulo ascendente. A formação prevê que o Bitcoin acabará por quebrar para $13.000 se validar o triângulo mantendo-se acima dos $12.000.

Este otimismo foi ecoado por uma série de outros analistas.

Outro notou que, uma vez que Bitcoin detinha a faixa de 11.600 dólares, há uma boa probabilidade de que a tendência dos preços reverta mais alto nos próximos dias: „$BTC Basicamente estou longo e vou fechar se quebrarmos abaixo. O TF baixo é ruído e a estrutura TF mais alta ainda está em alta – altos e baixos mais altos“.

Também mostrando que o BTC ainda tem força são indicadores técnicos.

Comentando sobre o indicador On Balance Volume, que mostra o fluxo de capital nos mercados, um trader disse que parece que há uma inundação de capital em Bitcoin:

„OBV está a começar a parecer promissor. A pressão de compra é evidente nas últimas 2 horas, desde que se atingiu os mínimos do dia“. A pressão de compra é evidente nas últimas 2 horas, desde que se atingiu o mínimo do dia“.

FUNDAMENTOS TAMBÉM INTACTOS

Os fundamentos do mercado de moedas criptográficas também estão intactos, argumentam os analistas.

Em relatórios anteriores do Bitcoinist, o gerente de ativos digitais Charles Edwards argumentava que é difícil ser grosseiro com o Bitcoin. Isso se deve a uma confluência de fatores fundamentais, que inclui, mas não se limita a isso:

Bitcoin foi adotado por Dave Portnoy da Barstool Sports, que tem mais de um milhão de seguidores.
A Reserva Federal ainda está trabalhando em um projeto em dólar digital.
A capitalização de mercado do Tether está aumentando a um ritmo acelerado.

Pornhub Premium? You can now subscribe in Bitcoin (and Litecoin)

When the king of X falls for Bitcoin – Pornhub, the leading pornographic content site, now offers Internet users access to its premium services through payment in Bitcoin Code and Litecoin. Natural beginnings in the porn industry for the two cryptocurrencies, according to a platform executive.

Our opinion on Bitcoin (BTC) »

Is the porn industry a lever for the adoption of cryptocurrency?

The adult content site has already been offering cryptocurrency payment since 2018 , through the Verge (the reference is not accidental). Now, Pornhub also accepts 2 leading cryptos for subscription to its premium services : Bitcoin and Litecoin.

“As a leader in adult content with over 130 million daily visitors, Pornhub is pleased to now offer two leading and widely used digital currencies to its users. Our team continues to lead the way in the development, testing and implementation of new technologies for everyday consumers, well ahead of the mainstream market. » , Corey Price, Vice President of Pornhub

Will porn be able to help develop the use of cryptocurrency as it did for other technologies in the past? This scenario is not to be ruled out. However, if these sites attract many Internet users, few of them today accept to take out the bank card.

Bitcoin Bank Card

Bitcoin could remove some barriers in this area, reassuring consumers. Guaranteed discretion and no risk of having your bank account tapped several times after having communicated your data.

This argument was also underlined by Satoshi Nakamoto himself in 2010, as Cointelegraph reminds us :

“Bitcoin would be handy for people who don’t have a credit card or don’t want to use the cards they have, either because they don’t want their spouse to see it on the bill, or because they do not trust the possibility of giving their number to ‚pornographers‘, or because they are afraid of recurring billing. „

It just goes to show that the initiation into change can come from anywhere. With Pornhub making the leap to Bitcoin and Litecoin, one would expect competitors to join in as well.