Bitcoin Futures
By Mark O’Brien, Senior Broker
Typically, if you’re interested in Bitcoin, it’s for two reasons:
One is that you want to convert your dollars to Bitcoin so that you can buy products and services with it, because there’s no administrator involved in the transaction like a bank or credit card company, or a PayPal or Zelle-type of entity. That’s why it’s called a decentralized currency: only the two sides of the transaction can see it.
But unlike a currency-backed transaction – like U.S. dollar transactions – Bitcoin transactions don’t come with legal protection and they’re typically not reversible, which makes them susceptible to scams. And if or when you convert your Bitcoin back to U.S. dollars, you have to report capital gains and losses.
The fact is cash – and in particular the U.S. dollar – is still king. In the entire world, the dollar is currently involved in almost 60% of all transactions – in commerce, business and in trading. That’s compared to the next most used currency, the Euro at ±13%. In third place is the Japanese yen at ±5%. All the other currencies in the world, including such notables as the Swiss Franc, British pound, Chinese yuan and to a miniscule degree Bitcoin – they’re all little tiny slivers to the financial transaction pie. That’s why people invest with U.S. dollars.
This brings me to the other reason people are interested in Bitcoin: it’s an asset that moves up and down in price and that movement can be an opportunity to increase the value of your Bitcoin you hold. The unfortunate shortcoming for Bitcoin investors however, is that you’re limited only to profiting from buying Bitcoin low and selling high – and converting your Bitcoin back to dollars to realize any profit.
There’s a much better alternative to invest in Bitcoin. For people looking to profit from Bitcoin price movement: consider trading the price movement you see in Bitcoin every day, yet never have to actually be in Bitcoin, but rather a derivative of it. Trade an asset that moves in sync with Bitcoin, is valued and traded in U.S. dollars and is listed on the largest financial derivatives exchange in the world.
The exchange I’m talking about is the CME Group, and the asset – there are actually three assets: the Bitcoin futures contract, the Micro Bitcoin futures contract and the newest Bitcoin Friday futures contract (sized at 1/50 of a Bitcoin like the Micro Bitcoin and cash-settled every Friday).
These three assets trade on the CME where all participants see the same prices and quotes and you enjoy the price discovery of a transparent futures contract. Of course, as a futures contract you can trade on the long and short side of the market.
If you’re a trader – in stocks, mutual funds, real estate, or other commodity futures such as stock indexes, precious metals, energies, grains, etc. and you’re looking to diversify your assets into digital currency and Bitcoin specifically, look into Bitcoin futures and trade with assurance in the asset.
Trade Micro Bitcoin with real-time price and DEMO money INSTANTLY
Daily Levels for September 13, 2024
| December Gold
December gold has resumed its rally into new highs. This has the chart aim at its third upside PriceCount objective to the 2620 area. It would be normal to get a near term reaction int the form of a consolidation or corrective trade, at least, upon satisfying the count. The low percentage fourth target to 3325 is not shown here for presentation purposes. |
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| The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved. It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com
Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results. |
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* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.
