In simple terms, you choose your coin (BTC or ETH), choose to buy or sell, then pick a price with an associated APY.<\/p>\n
Regardless of whether your option hits, you get a little extra on the deal in the form of interest.<\/p>\n
Every. Single. Trade.<\/p>\n
Free money.<\/p>\n
I have only seen this implemented at CoinEx<\/a>, and it’s so simple.<\/p>\n The downside is that the minimum trade is $100 (USDT or about that value in BTC\/ETH).<\/p>\n That sucks for the smaller trader and, like the $50 minimum for copy trading at MEXC, grates on my aim of finding things that work whether you have $1 or $1,000.<\/p>\n Well yes, you can, but it’s a bit like that “impermanent loss” on yield farming.<\/p>\n When you put in an order, you lock your funds. You also set a price for that whole period.<\/p>\n So if Bitcoin was up at $82,000 and you put in a $100 buy at $78,000 with a 15-day lock and the price of BTC dropped steadily to $60,000 over that period, you would buy at $78,000 (your option choice), then your funds would be locked until the end of the 15-day period. You’re stuck with $100 of BTC that’s now worth about $77. Ouch.<\/p>\n The opposite’s also true: if you choose a “sell high” and the price pumps way past your selling price, you’ve missed out on potential gains.<\/p>\n A real life example? Sure.<\/p>\n My first go at this was a “Buy low” for $500 USDT of BTC, with the price set at $81,750. Then BTC plumetted, my buy went through at the set price and my BTC was worth about $470 at the end of the lock period because the price went down to around $77,000.<\/p>\n The opposite would be where you sell BTC\/ETH to USDT at a given price, the price keeps going up, so you sold at your price and ended up with less USDT than you could have had if you’d held on.<\/p>\n A lower sell price isn’t such a big deal. A higher buy sucks, but as long as the market goes back up (longer term), you’re still OK.<\/p>\n Given that I (a) suck at trading and (b) don’t understand futures very well, this looked like a dangerous setup, something to avoid.<\/p>\n But then I thought… “hang on, it’s my usual spot trading with benefits!”<\/p>\n My normal method for doing a spot trade is to figure where I’d like to buy and set the trade. Then I figure what profit I want and set the sell. I try not to adjust either one of those and sit back, hands off, until the market triggers the buy\/sell.<\/p>\n I can do that here, too (as long as the price isn’t crazy volatile), with a set time period, and get a little extra.<\/p>\n “How so?” you ask.<\/p>\n If I’d bought BTC with a spot trade in my real life example above (at $81,750), I’d want a sell price that’s higher. Let’s say $83,000 – a gain of about 1.5% on the original buy, which I think is decent for short-term BTC trading. As I have mentioned, I was doing 1% trades originally, so that’s a good target for me.<\/p>\n On CoinEx<\/a>, I go to Earn > Dual Investment > Subscribe more (which ends up here<\/a>), choose “Sell high” (BTC), sort by the sell price, and see there’s an offer at $83,000 over 5 days at 21.08% APY. I’ll take that, even though BTC’s far more likely to stay low or drop further (IMHO) in the next 5 days – I’m not trying to predict prices, remember, I’m doing what I’d normally do to set up a spot sell for the BTC I bought.<\/p>\n So I put my 0.006 BTC in, which is $490.50 at buy price because dual investment rounds off at 3 decimals (the remaining $9.50 stays in my spot wallet as BTC). As you can see from the details, if BTC goes up to $83k, I’ll get $499.35 (the normal sell amount plus a dollar and a bit); if BTC stays under $83k I keep my 0.006 and get an extra 0.00001628 BTC in interest (the same dollar and a bit).<\/p>\n If it doesn’t sell by the end of those 5 days, I’ll set up a similar option again, with the same sell price (if possible) and a nice APY.<\/p>\n With a bit of lateral thinking, there’s no difference to my normal crappy trading attempts except I get free interest. Win-win. Love it.<\/p>\n As always, I messed around, THEN sat down, researched, and thought about ground rules. One day I’ll learn to do things in the right order, I promise!<\/p>\n I think that covers it all. The most important part is NOT to think of it as futures trading or anything unusual (for me), but to approach it as I would spot trading, with strict rules as laid out above.<\/p>\n What do you think? Is it too dangerous or is it just normal trading with extra fiddly bits to manage?<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" No, I’m not talking about welfare benefits (never a good idea to trade with money you can’t afford to lose), I mean spot trading with an extra bonus. Last week,…<\/p>\n","protected":false},"author":3,"featured_media":140,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[9],"class_list":["post-139","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-midweeks","tag-trading"],"_links":{"self":[{"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=\/wp\/v2\/posts\/139","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=139"}],"version-history":[{"count":2,"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=\/wp\/v2\/posts\/139\/revisions"}],"predecessor-version":[{"id":142,"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=\/wp\/v2\/posts\/139\/revisions\/142"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=\/wp\/v2\/media\/140"}],"wp:attachment":[{"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bonjourgeorge.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}But You Can’t Lose, Right?<\/h2>\n
Lateral Thinking<\/h2>\n
![\"Dual](\"https:\/\/cdn.publish0x.com\/prod\/fs\/images\/e48f366e71a0a7e157ba061a3481a4a9b4a0d40f4fb3a9263aafc16107bc760f.png\")
<\/p>\nThe Strategy<\/h2>\n
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