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Deribit.com

Many Bitcoin holders are long-term bullish and do not plan on selling their bitcoin in the near-term, or even the long-term. But why not earn a bit of return on your holdings? Deribit, a crypto derivatives trading platform, allows you to do just that with very little risk.

A well-known options strategy in traditional financial markets is the out of the money covered call. It’s suitable when the asset holder is long-term bullish on the underlying asset, but in the near-term is not so bullish, or neutral. It’s considered an advanced strategy but it’s actually quite simple. Here’s how it works:

  1. Send some Bitcoin to Deribit to cover the position you will open. For example, ONE Bitcoin.
  2. Decide on a strike price and date that you think will not put your Bitcoin at risk of being called away. For example, Bitcoin is currently at $6000, and you think the price will stay below $10,000 for 3 months.
  3. Find the option that matches your outlook and sell (write) one call.
  4. Collect your premium if/when the options contract expires below the strike price on the date of the contract.
  5. Repeat.

For more details or if you have any questions, please contact us at info@coinchapter.com

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