{"id":21884,"date":"2024-06-13T07:30:12","date_gmt":"2024-06-13T11:30:12","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21884"},"modified":"2024-06-13T07:30:12","modified_gmt":"2024-06-13T11:30:12","slug":"the-smarter-way-to-trade-bitcoin","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/the-smarter-way-to-trade-bitcoin\/","title":{"rendered":"The Smarter Way to Trade Bitcoin"},"content":{"rendered":"

Managing Editor’s Note: <\/strong>Today, we’re turning things over to colleague Larry Benedict – a market wizard and legendary hedge fund manager.<\/p>\n

Today, he’ll share the smarter way to play bitcoin so that you can protect your portfolio against volatility.<\/p>\n

Read on to learn more…<\/p>\n

\n

The Smarter Way to Trade Bitcoin<\/h1>\n

By Larry Benedict, editor, Trading With Larry Benedict<\/em><\/strong><\/p>\n

<\/p>\n\n\n
\"Larry<\/td>\n<\/tr>\n<\/table>\n

<\/p>\n

“Bitcoin on target to hit $100,000 by year’s end<\/em>…”<\/p>\n

That kind of headline gets your attention right away.<\/p>\n

And it’s appearing a lot right now with Bitcoin (BTC) trading near all-time highs.<\/p>\n

Now, the $100,000 figure might tug at your emotions about all that potential profit on offer.<\/p>\n

Yet it represents about a 40% gain from BTC’s current levels (around $70,000). And there’s well over half a year for that to play out.<\/p>\n

So the truth is, we’re not looking at a life-changing gain.<\/p>\n

Especially when you consider cryptos’ volatility…<\/p>\n

When BTC and other cryptos tank, they’ve plunged as much as 60–80%.<\/p>\n

That can be hard to remember when Bitcoin’s soaring… But anyone who discounts that fact may face a painful reality down the road.<\/p>\n

That’s why I trade BTC differently than most.<\/p>\n

The way I do it can hand you returns in a short time. But most importantly, I do so with a clear cap on any risk…<\/p>\n

Putting Risk Management First<\/strong><\/h2>\n

For some folks, risk management is an afterthought.<\/p>\n

Some might not even think about it at all.<\/p>\n

They’re far too interested in the money they can make. They don’t want to worry about what happens if things go wrong.<\/p>\n

And believe me, when I started out in the markets 40 years ago, I made the same mistake.<\/p>\n

I blew up multiple trading accounts before finally realizing that risk management is at the heart of any successful trading strategy.<\/p>\n

Learning that – sometimes painfully – put me on track to where I am today…<\/p>\n

I went on to have 20 successive winning years in a row. Barron’s<\/em> ranked my hedge fund in its top 1%.<\/p>\n

That led Jack Schwager to feature me in Hedge Fund Market Wizards<\/em> along with some of the all-time most successful traders like Ray Dalio and Joel Greenblatt.<\/p>\n

And now I’m taking that trading discipline to the crypto space.<\/p>\n

The way I trade BTC differently and cap my risk is that I don’t actually trade BTC at all…<\/p>\n

Instead, I trade tickers that give me exposure<\/em> to the BTC price.<\/p>\n

And believe me, that’s a crucial distinction…<\/p>\n

If I owned BTC outright, I’d have to store my holdings in a digital wallet or with a crypto exchange.<\/p>\n

If I forget my password or lose my wallet, then my money evaporates into thin air.<\/p>\n

Plus, we’ve seen plenty of heartache in the news about crypto fraud, theft, and Ponzi schemes – not to mention exchanges getting hacked or collapsing.<\/p>\n

And as I mentioned above, BTC has crashed multiple times throughout its history. So even just holding a volatile asset like this has its risks.<\/p>\n

For someone like me whose career was made on strict risk management, I needed to find another way.<\/p>\n

<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/p>\n

Higher Returns for Less Risk<\/strong><\/h2>\n

Rather than owning BTC directly, I trade it using tickers like the ProShares Bitcoin Strategy ETF (BITO), which tracks the BTC futures price on a regulated exchange.<\/p>\n

That also means you can do these trades in a regular brokerage account.<\/p>\n

I call this strategy “Bitcoin Streaming.”<\/p>\n

And we’ve been able to make an 87% gain in just five days, as one example… when BTC only gained 13.5%.<\/p>\n

Another time, we had the chance for a 72.3% return when BTC fell<\/em> 18.7%.<\/p>\n

As you can see, we can profit by trading BTC in both <\/em>directions. That’s another vital distinction whenever Bitcoin decides to drop off its peak…<\/p>\n

And unlike holding Bitcoin during a crash, my strategy enables us to know what our maximum loss could be before<\/em> we place any trade.<\/p>\n

So higher gains can hit our accounts… with tightly controlled risk. Together, that makes this a powerful trading strategy.<\/p>\n

<\/p>\n

Regards,<\/p>\n

Larry Benedict
Editor, Trading With Larry Benedict<\/em><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

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