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Messages - Hugo Barbosa

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32
BitOffer: How to make steady profits with Bitcoin options while ups and downs?

Many people may not be particularly familiar with bitcoin options, as most bitcoin users have only trade with contracts, which also known as futures.

More recently, BitOffer’s chief analyst Lucian noted in a June report that "nearly $1 billion of bitcoin options contracts are due to expire at the end of June, which representing 60% of total open interest in the BTC options market. In that case, there could be a significant economic incentive to push the spot price to a certain level before the maturity date." To be clear, bitcoin options are only 1% of BTC futures and spot trading. This means that options have huge potential in the Bitcoin market, which makes us pay attention to the rise of options. If 2019 is the promoting year of contracts, then 2020 must be the promoting year of options development.

At present, in terms of options, BitOffer is the first one to launch options in the industry. BitOffer is also the platform with the largest and most active trading volume of options at present, with nearly 130,000 daily users and the largest monthly turnover of up to 1.5 billion dollars. As the first to develop options, first of all, in terms of options, BitOffer has BTC, ETH, BCH and BSV options, it is the most complete exchange in the industry so far. Secondly, the product period from 1 minute to 7 days, a total of 12 choices are available for users to choose freely, allowing users to flexibly use and operate the transaction period suitable for them.

How can we operate so that we can achieve a better and more stable profit?

  • We can operate with the trend characteristics of Bitcoin.

When refreshing the BTC candlestick we could notice the fluctuation is more active in the first and last 5 minutes. Therefore, we can choose a 5-minute option to obtain the maximum interval benefits with the minimum time and cost.

  • Pursuit when the market continued to rise and fall




For example, when the market is in a continuous rise, the volatility will be greater. As the chart shows, at 5 am the market expected volatility. At this point, once we brought the 1-hour call option at position 9665, we could earn $135 after the price reaching 9800.

If the market falls and fails to close the position, then we can buy a 5-min put option around 9750 to hedge the risk of a fall, the cost less than $5. Assuming the market continues to go up, we would have a higher return on the 1-hour option more than $135.

If prices fall back to 9645, then the 5-min put option can get $105. As it dropped sharply in the subsequent, the 1-hour options will lose all the money. However, the correction of options could hedge the loss of 1-hour options in the callback, meanwhile, realize the huge profits. This cyclical portfolio hedging works well as long as intraday volatility is greater than our costs.


Options, as the most potential trading variety in the future, are undergoing rapid development. Then, among many options platforms, why can BitOffer stand out and become the largest options trading platform from others?

  • BitOffer options come with thousand times leverage
  • Never Being Liquidated, 0 margins 0 commission
  • Low threshold and variety products, flexible choice of period
  • Unlimited benefits with a small budget, low risks


With many advantages, BiOffer quickly occupies the options market and also becomes the first choice. What are you waiting for? Try the bitcoin options now, and you'll get $50 for registering.

33
Let's take a look at how the Dual Currency - USDT Product works:

Here we have a product with the parameters as follows:

Linked Price: 8,000

Expiry Date: 10-Apr-2020

Yield: 5%

Investment Currency: USDT

On 06-Apr-2020, John bought 10,000 USDT notional of the above product.

On 10-Apr-2020

If BTC rallies between April 6 and April 10, and the Settlement Price is above 8,000 USD, John receives his original investment + 5% yield in USD. Therefore, he receives 10,000 + 5%*10,000 = 10,500 USDT.

If BTC weakens against USDT between April 6 and April 10 and the Settlement Price is at or below 8,000 USD, John receives his original investment and 5% return in BTC. Therefore, he gets 10,000/8,000 + 10,000/8,000*5% = 1.3125 BTC.

Simply put, it is guaranteed that John will get a 5% yield on the expiry date. The only uncertainty is whether he will receive it in BTC or USDT, depending on where BTC/USD stands on the expiry date.

Even the Dual Currency Financial Product is an investment that brings investors a floating return, but we can clearly see that in the example that even the settlement price is less than the Linked price, we can still get BTC with the same yield.

In the short-term, we may lose money from the bitcoin price drops. However, in the long-term, since we get more Bitcoin at that moment, our assets will finally become much more valuable. (Why?: Bitcoin is the asset that owns the best performance in the past 10 years)

34
I don't think that will happen, because in some countries there are still many who consider that bitcoin is illegal, so it is very likely that bitcoin will not become a legal currency.

Indeed, some people treat Bitcoin as the evil currency and misunderstood the investor who trades it. Though more people aware of the value of bitcoin, give it some times, baby step, pal.

35
Nice, as BCH and BSV, both have their distinct set of vision and developments, which look promising for the future. It is very glad to hear the news.

36
Bitcoin Forum / Re: Is Coronavirus An Advantage For Bitcoin?
« on: June 19, 2020, 12:00:05 PM »
From my point of view, it could be an advantage, especially now many people pay attention to crypto as they having more time to doing online works.

37
I think it depends on the time, eventually, Bitcoin will reach more than $100,000.

38
Bitcoin Forum / Re: Bitcoin price history during June 2020
« on: June 19, 2020, 10:59:09 AM »
There is a risk of accelerating the decline in the short term. Note the 9300 support line at the lower level.

39
Bitcoin Forum / Re: The movies about Bitcoin
« on: June 19, 2020, 10:57:22 AM »
I do watch one of these movies, though there is still something more I would love to have a try.

40
The history of the world's reserve currencies over the past 600 years shows there have been several dominant countries at different times: the Netherlands, the UK, and the US. At every historical stage, the world's reserve currencies cames along with their strong economic fundamentals and military might.

So far in human history, no single dominant force has been able to stay on the top. The Netherlands, Britain, and the United States were the dominant forces in the past 500 years, but they all in a trend of replacement.

With the establishment of the new world order, any replacement of the world reserve currency completed with decades or even hundreds of years. The US now printing lots of dollars and generating and debts, which shows a similar historical scenario.

Bitcoin is the product of the interactive development of the internet and finance, as well as the development of the times. Bitcoin is a currency issued based on a set of internet protocols rather than credit. Without issuer,  third-party institution, and regulatory authority. The generation, transaction, and exchange of Bitcoin are all completed jointly by all nodes of the entire Bitcoin network.

Because of the sharp fluctuation of the exchange price of sovereign currency, and its super-sovereign currency feature has also attracted the attention of the public. Bitcoin is also a value symbol and the value is reflected in the exchange. However, it differs from sovereign currencies in that no country or economy guarantees Bitcoin, and its purchasing power is not linked to any  GDP of the economy. The whole process from the generation to the circulation of Bitcoin is based on the credit of the entire Bitcoin network. The core value of Bitcoin lies in its independent and free structure, which ensures that any transaction is valid.

In the complex context of this transition, Bitcoin has the potential to seize a rare historical opportunity to make the jump from the hundred-billion-dollar to the trillion-dollar level. If bitcoin doesn't make that leap in its second decade, it has little chance of becoming the digital gold or one of the major reserve currencies of the new era. Overall, though, future uncertainty gives Bitcoin the chance to jump.




The market lacks an investment that could resist the risk of volatility and at the same time bring certain returns. The dual currency emerged as the times require. Different from the existing interest-bearing deposit and currency financing, dual-currency determines the income settlement method based on the "pegged price". Dual-currency financing can gain value from one of the two digital currencies.

Taking BTC/USDT dual currency which recently launched by BitOffer as an example

Dual Currency is a non-principal protected investment product with a floating return. The yield of the product is secured at the time of purchase, while the currency in which the product will be settled changes depending on how the Settlement Price compares with the Linked Price. A short-term investment product, Dual Currency could potentially provide a very high return. We have also designed it with a selection of tenors, catering to your varying risk appetite.

In this way, we can realize that Dual Currency is a product that enables investors to earn a stable profit from the cryptocurrency market. Even its profit seems to be higher than holding tokens on the spot trading market, but unlike leveraged trading, the risk is much lower.

Here is an example of investing Dual Currency

Let's take a look at how the Dual Currency - USDT Product works
Here we have a product with the parameters as follows:
Linked Price: 8,000
Expiry Date: 10-Apr-2020
Yield: 5%
Investment Currency: USDT

On 06-Apr-2020, John bought 10,000 USDT notional of the above product.
On 10-Apr-2020

If BTC rallies between April 6 and April 10, and the Settlement Price is above 8,000 USD, John receives his original investment + 5% yield in USD. Therefore, he receives 10,000 + 5%*10,000 = 10,500 USDT.

If BTC weakens against USDT between April 6 and April 10 and the Settlement Price is at or below 8,000 USD, John receives his original investment and 5% return in BTC. Therefore, he gets 10,000/8,000 + 10,000/8,000*5% = 1.3125 BTC.

Simply put, it is guaranteed that John will get a 5% yield on the expiry date. The only uncertainty is whether he will receive it in BTC or USDT, depending on where BTC/USD stands on the expiry date.





Dual-currency is very suitable for stable investors who are averse to fluctuations. If such investors only hold the currency, it is difficult for them to get extra income in the current volatile market. Dual-currency finance can ensure the growth of investors' accounts at the given rate of return.

BitOffer as the largest digital currency derivatives trading platform, committed to providing investors with a richer, more appropriate investment category, the pioneering BTC, ETH, BCH, BSV various mainstream currency options, day trading user must, recently launch BCT/USDT dual-currency money, for investors in an uncertain market environment, provide deterministic appreciation, fearless and double benefits.

Sign up and enter the referral ID 007RTX to get $50.
https://www.bitoffer.com/en

41
To the general public, mostly, coinage investors seem to be short-term speculative traders, trading spot or futures contracts with leverage to make large profits at the risk of exploding positions. However, in addition to short-term speculative traders, there still some long-term investors and the stable earnings robust investor. Normally, miners and the massive investors don't care about short-term fluctuations of the market, but the long-term and sell it out at the higher spot. Meanwhile, the stable income investors are the group of risk-averse, they prefer the steady yield.



For these two types of investors, the market lacks an investment that could resist the risk of volatility and at the same time bring certain returns. The dual currency emerged as the times require. Different from the existing interest-bearing deposit and currency financing, dual-currency determines the income settlement method based on the "pegged price". Dual-currency financing can gain value from one of the two digital currencies.

Taking BTC/USDT dual currency which recently launched by BitOffer as an example, it is assumed that the pegged price is 9000USDT. Within a fixed investment cycle, the investor can obtain a fixed 5% return rate. If the price of bitcoin rises beyond the pegged price of 9000USDT at maturity, the principal and interest will be settled by USDT. If the price of bitcoin at maturity does not exceed 9000USDT, the principal and interest shall be settled by BTC. From the investor's point of view, whether the due currency price is above the fixed price, the investment results are all earned, the only different part is the earned currency.

Thus, can dual currency really break even? This is a matter of concern to many investors, Lucian chief analyst of BitOffer exchange believe that the dual-currency is actually a non-principal protected investment product when we talk about break-even, is that you have always been able to get double money in one currency appreciation. We talk about non-principal protected, is when there exists a critical value for money as if you buy dual-currency and the currency price is P, the established revenues by 5%, and the currency fell upon the expiry of more than P/(1 + 5%), the value less than the market price. However, this kind of situation is less except during extreme prices.

How to realize dual currency to maximize income? This is related to the fluctuations of the standard currency when the standard currency is in a stable bull market, investors can choose to link the high price, high yield, and longer cycle of dual-currency. Because in this market, the price of the due currency can usually exceed the link price, to achieve the increase of the standard currency. In the volatile market, the maturity of the currency price has the possibility of a callback, choose low peg price, slightly lower yield, and a shorter period of dual-currency finance, will easier to achieve gains.



Dual-currency is very suitable for stable investors who are averse to fluctuations. If such investors only hold the currency, it is difficult for them to get extra income in the current volatile market. Dual-currency finance can ensure the growth of investors' accounts at the given rate of return.

BitOffer as the largest digital currency derivatives trading platform, committed to providing investors with a richer, more appropriate investment category, the pioneering BTC, ETH, BCH, BSV various mainstream currency options, day trading user must, recently launch BCT/USDT dual-currency money, for investors in an uncertain market environment, provide deterministic appreciation, fearless and double benefits.

Sign up and enter the referral ID 007RTX to get $50.
https://www.bitoffer.com/en

42
The Bitcoin chart wins a Hammer on the daily. It is time to trying something new.

43
Bitcoin Forum / Re: The movies about Bitcoin
« on: June 15, 2020, 03:03:10 PM »
Waiting for more movie talking about bitcoins. Which shows that bitcoin is getting important.

44
BitOffer options should be a nice choice at this point.

45


According to a recent report from Delphi Digital, the amount of Gas used on the Ethereum blockchain is at an all-time high, and the number will continue to grow. Gas is used as a way to charge for the Ethereum blockchain, and the total amount of gas used online has been rising since the beginning of 2020.



Gas usage and possible maximum fuel   -  sources: Delphi Digital

The total amount of ETH gas used is different from the transaction cost indicator in the BTC blockchain. On the Ethereum network, transaction and intelligent contract fees are determined by the amount and price of gas required, which allows fees to change dynamically and separated from Ethereum's price to a certain extent.

The amount of gas used in a given transaction depends on the computational complexity of the transaction. Gas prices, on the other hand, are chosen by the person executing the transaction and priced in Ethereum. The price is ultimately set by the miners, who accept or reject the deal based on the gas price.

USDT and DEX leads the market

While gas usage reached an all-time high, the number of transactions on the Ethereum blockchain is still far below  1,349,890, the transactions reached on January 4, 2018.

This means that most of the increase in total gas usage comes from the use of smart contracts, which are more complex and therefore require more gas.

According to ETH Gas Station, the majority of gas usage comes from USDT, of which used about $1.61 million of Ethereum Gas. This is more likely followed by DeFi and some scams and Ponzi schemes. USDT also leads in average gas prices used, at 35.5 Gwei.

After USDT, DEX appears to be in the lead in popularity. According to DappRadar, IDEX is the most used Dapp in terms of the number of transactions alone, while IDEX and Kyber are among the top three on the Ethereum network.

A recent survey also shows that DeFi's highest awareness and usage comes from DEX.





Higher transaction fees and gas restrictions

The increase in the use of the Ethereum network led to an increase in average transaction costs as miners preferred to deal with higher gas prices.

Total gas usage is limited by miners, which limit the size of the Ethereum blockchain by determining how many transactions are in a block.

Ethereum is likely to face network congestion soon due to several factors, including the current increase in the use of gas on the network and related block gas restrictions. If gas usage rises to the upper limit, users will have to compete with higher gas prices to execute trades and smart contracts.

Also, a sudden collapse in Ethereum prices can lead to higher fees and network congestion. According to a report by The Block, on March 12th, the average fee costs increased from $0.16 to $1.04.

When the usage is close to the limit set by miners, we may need to add the block gas limit. The most recent increase was in September 2019, when the block gas limit increased by 25%, from about 8 million to about 10 million.

However, the change will further increase the size of Ethereum's blockchain, which is already nearly 140 GB. Therefore, seeking a more efficient method of investment has become a new way out for many people.

Take BitOffer as an example, the biggest feature of BitOffer option is that no matter whether it is a bull market or a bear market, it has the opportunity to obtain up to a thousand times of excess income without any margin or handling fee. Bitoffer options provide sections of 2 minutes, 5 minutes, 15 minutes, and 1 hour. Besides, it is worth mentioning that the ETH option spot index is composed of the equivalent weights of 7 exchanges.

More info: https://www.bitoffer.com/en

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