Managing Editor’s Note: If you’ve ever thought about trading crypto, then there’s an upcoming event you don’t want to miss.
On September 25, tech investor Jeff Brown will reveal his latest invention… a tool that combines the power of AI with crypto.
Its goal? To spot short profit windows in the crypto market…
So if you’re looking for a new way to trade cryptocurrencies – even small ones most people have never heard of – be sure to go here for more information. (At the event, Jeff even plans to share the name and ticker of his latest buy.)
And then read below about Larry’s own unique and profitable strategy for trading Bitcoin…
“Bitcoin is on target to hit $100,000 by year’s end…”
I’ve seen this headline plenty of times this year.
It pops up whenever Bitcoin enjoys a big run.
The headline also tugs at your emotions… Who wouldn’t want to get in on action like that?
Or perhaps more accurately, wouldn’t you hate to miss out?
But each time the media has dragged out that headline this year, Bitcoin rolled over and headed south.
From July 29 to August 5, Bitcoin dropped from a high of around $70,000 to just below $50,000. That’s a nearly 30% fall in just seven days.
Folks who got lured in when Bitcoin was trading high watched their money go up in smoke.
Worse still, crypto winters have seen Bitcoin and other cryptocurrencies lose 60–80%.
Even still, few can look away from the profits on offer. So the trick is finding a way to limit your risk when trading this asset class.
That’s why I trade Bitcoin differently than most…
Risk Management Before Profits
For some folks, risk management is an afterthought.
They’re far too interested in the money they can make to bother worrying about what happens if things go wrong.
When I started out in the markets 40 years ago, I was the same way.
I blew up my account several times before I figured out that risk management is at the heart of any successful trading strategy.
That realization put me on track to where I am today.
I went on to have 20 successive winning years in a row. And Barron’s ranked my hedge fund, Banyan Capital, in its top 1% globally.
That led Jack Schwager to feature me in his book Hedge Fund Market Wizards along with greats like Ray Dalio and Joel Greenblatt.
And that’s why I look at the crypto market differently than many people.
I don’t trade Bitcoin directly at all…
Instead, I trade assets that give me exposure to Bitcoin’s price.
And believe me, that’s a fundamental distinction…
If you own Bitcoin outright, you take the risk of storing your holdings in a digital wallet or on a crypto exchange…
If you forget your password or lose your wallet, your money evaporates into thin air.
Plus, we’ve also seen enough news about crypto fraud, theft, and other schemes – not to mention crypto exchanges being hacked or collapsing.
Now, some traders are comfortable with these risks and their own precautions.
But I prefer to go another route.
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Big Returns, Less Risk
Rather than owning Bitcoin directly, you can trade it through stocks like ProShares Bitcoin Strategy ETF (BITO). It tracks the Bitcoin futures price on a regulated exchange.
Other stocks like Coinbase Global (COIN) and various crypto miners also offer exposure to the crypto market.
This way, we can trade Bitcoin’s price moves through a regular brokerage account.
And this strategy has brought my subscribers some excellent profits…
Earlier this month, we closed out our latest trade for a 100% gain.
And because we use options, we can trade Bitcoin in both directions. That’s vital with an asset class as volatile as crypto.
Of course, like with any strategy, we don’t win all the time.
But options allow us to know exactly what our maximum loss could be before we place any trade. And it’s just a fraction compared to trading Bitcoin directly.
So if you’re interested in profiting from Bitcoin’s big swings with less risk, then this strategy is an incredible tool – whether Bitcoin goes to $100,000 or not…
Regards,
Larry Benedict
Editor, Trading With Larry Benedict