edutradinguru

BVOL - VOLATILITY IS OUR FRIEND AND CAN ACT AS INSURANCE. HOW?

Long
FTX:BVOLUSD   Bitcoin Volatility Token
Hello,

I want to show you the perfect way to hedge your BTC and Alts exposure without selling them, partially selling them, buy expensive options, open coverage short positions.
Indeed, probably you do not know this instrument yet, but BVOL tracks BTC volatility can act as an insurance against volatile market conditions. And, best thing, it is tradable.

Why do we need to hedge now?

because BTC is at a point where:
-if it goes up, a pump will happen as we closed the week above the highest weekly close EVER. Volatility will increase in that case.
-if we are wrong, and this is a double top, the rejection may be violent, and guess what? Volatility increase.

The only case in which volatility. It seems very close to a win=win situation.

Then why not to gain on this information?

BVOL is an index that tracks BTC Volatility and seems not to have priced the upcoming volatility increase yet. It is at its floor and therefore is at a perfect buy. The sideways movement of BTC may last 1 day or one week, but volatility will eventually be back soon. Even in case we are completely wrong and it goes lower, then we would have paid a small price for the coverage - as an insurance indeed.

This amazing instrument is available only on the exchange on the chart. Link in bio for more info.

What do you think about this instrument and about the specific use we can make of it? Let me know in the comments!
Comment:
No volatility spike yet, but the trade served its goal: protect our positions for a volatile spike sown, or even increase the gain in case of spike up. All at almost no cost.

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