Bitcoin ‘Carry Trade’ Can Net Annual Gains With Little Risk, Says PlanB
Cointelegraph By Benjamin Pirus's original article for cointelegraph.com reduced by 49%
Recently, PlanB, a crypto investor and analyst active on Twitter, described a Bitcoin trading strategy that yields a stated 7-10% profit annually with limited downside risk. "Bitcoin cash and carry will net you 7-10% annualized return. almost risk free." PlanB's mentioned trading strategy involves both spot Bitcoin trading and Bitcoin futures trading.
Traders might look to an exchange such as Coinbase to buy spot BTC. Alternatively, Bitcoin futures trading is a derivative trading product based on Bitcoin's price. Bitcoin's futures and spot trading step a delicate dance as Bitcoin futures prices can sometimes trade at a premium to spot BTC, depending on expiration.
At press time on Nov. 5, Coinbase shows Bitcoin trading around $9,360, while CME's November Bitcoin futures product trades at $9,420. CME's cash-settled Bitcoin futures and Bakkt's physically-settled Bitcoin futures often trade at higher levels compared to BTC's spot trading, the analyst explained in a podcast interview with Stephen Livera.
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