Now 20% with no risks and a perfect hedge? ELI5
I think explaining anything to you is not a good use of my time, however, that is an investment that you might be more interested in as it is perfectly
suited to those who hold fiat, rather than bitcoin, and don't want to expose themselves to the risk of capital gains or losses.
the bolded part it the issue (seems to me) most here are just long term hodl mode peeps.
but please explain, i wouldnt mind it. im not too bright but am good at learning from my mistakes. ive run napkin math and i almost always would have come out ahead if i straight up hodled btc instead of trying fancy stuff like that in my endeavors of the past. because it was too easy to lose compared to the almost 100% gaurentee that btc will rise over the long term.
hodling is hands off, just sit back and relax mode. perfect for me. fancy stuff you have to actively watch and worry about.. nah ill pass at the moment.
Well, as I said it's best to have fiat for this one. Which is why I won't do it. But, basically you buy however many BTC on the spot for current price of 55000. At the exact same time you sell a future, perhaps Sep 26th one for this example, for the same number of BTC at a current price of 62700. profit equals 7,700 minus fees
This can be done using CBOE and CME as well as many others, perhaps less reputable exchanges.
The risk for this trade is couter-party only and of course opportunity cost.