What is it?
The Straddle Buying Strategy allows an investor to bet in favor of the fluctuation of Bitcoin's price, either up or down.
The main advantage is that Bitcoin is still an extremely volatile asset when compared to financial market assets such as stocks, commodities and currencies.
Given this, Volatility Buying may be a good alternative to speculate on the price of Bitcoin with limited risk of loss.
How does Volatility Buying work?
The Volatility Purchase (Straddle) allows the investor to bet that he will have a big price fluctuation in the bitcoin market, either up or down. The greater the price fluctuation, the better the strategy will do.
The minimum investment is 0,1 BTC. Has no daily liquidity, and can only be redeemed after the maturity of the operation. There is no daily profitability. The returns obtained during the term of the contract are not cumulative. The effective return takes place only on the due date.
Volatility Buying Will Be Profitable only se on the due date the fluctuation of Bitcoin is greater than the cost of setting up the operation. Returns during the term of the transaction are not cumulative. Therefore, the final return of the transaction will only be known at maturity.
The risk of this strategy is that the market not oscillate enough to pay the cost of setting up the operation. The maximum loss will be known to the investor when setting up the transaction.
- No need to bet on price
- Gains with large fluctuations
- Bitcoin has high volatility. You bet on her
- Controlled losses
- Has no daily liquidity
- Operation has high assembly cost
- Has market risk not to fluctuate in the strategy period
- Yield known only when the transaction matures
Who is it for?
Volatility Buying is indicated for those who want to make money betting in favor of Bitcoin price fluctuation with controlled risk.
This product is not recommended for those with a low risk investor profile.