Make Profits from Bitcoin And Use 10x Leverage Everyday

So, in my prior e-mail, I told you guys about this trading strategy that works regardless of market condition when pertaining to Bitcoin and various other coins.

Now, for those who aren’t familiar with digital currencies, what I’m about to say next could change your life.

There’s a philosophical debate over the legitimacy of digital currency, but really, none of that matters.

What matters is that there’s a market for this new asset class, and people are willing to buy and sell these assets, which creates a perceived value for these coins at any given time.

The value of these coins tends to fluctuate, and with the right tools, and system one can profit from these daily moves regardless of whether the market goes up or down.

Now, school often over-simplifies the concept of investing, day trading, and portfolio management.

It’s commonly misunderstood that day traders or investors only have the option of buying low and selling high.

This could be in relation to stocks, bonds, commodities, and even digital currency.

However, buying low and selling high only works when the market is persistently trending higher.

But, what if the market is persistently dropping, like in the case of Bitcoin currently?

You could buy Bitcoin, but it could fall substantially, like it did from $20,000 to $6,400.

If you feel discomfort holding onto an asset that could rally by 1,000%, fall by 90%, from one year to the next, you’re not alone.

The “risk” could be viewed from a different angle, where sophisticated financial people, just like myself, recognize the “opportunity” from a statistical measure of volatility.

Day traders make money from volatility and not from recognizing trends.

This might sound weird, so I have to break out the discussion a bit more, so you follow the theory of trading volatility rather than trends.

When you recognize this distinction, you will be in a MUCH better position to trade the market, because your goal isn’t to necessarily predict the market, but rather follow the market in the direction in which it actually wants to go.

So, let me illustrate this in a couple stories, because I think people relate to me best when I explain from personal experience.

So, my business partner, Justin calls me on the phone to discuss a potential blockchain business deal, which looked very promising. But, over the course of the conversation, Justin said, “look I can tell your pessimistic on crypto prices, and you keep dragging your feet on this deal, what’s going on?” I replied back, “you know what, I think the price of bitcoin will drop this week.” Justin goes onto ask, “well why do you think that?”

I go onto mention, “You know, I’ve been long bitcoin and short bitcoin. I measure my own confidence by making quick trades in both directions of the market. You can try to prognosticate the market, but I don’t try to do that as much anymore. Instead of speculating on different price/pattern formations, I try to gauge my instincts, or my subconscious thought process by being fully immersed in the direction of the price rather than carrying some dogmatic belief in the future of blockchain, or on the converse have a dogmatic belief against the future of blockchain and cryptocurrency.”

So, my business partner, Justin responds back and says, “well yeah, I see what you’re saying. I don’t own any Bitcoin, so it’s hard for me to follow along with your viewpoint, or how you keep an eye on these sorts of things.”

 I reply, “If you don’t own any Bitcoin it’s difficult to relate to the emotions of people who own any of this stuff. So, let’s say you have a philosophical debate over Bitcoin, that’s the world of punditry and scientific examination, or academia. The mind-bending equations, algorithms, and consensus mechanisms or elliptic curve proofs, and stuff. This is where economists, software engineers, cryptographers and whatnot goof off in their little sand-boxed reality.

Whether any of this stuff is useful, feasible, or has any value associated with it, they debate endlessly. So, there are many people who sit around working out theories, or complex equations, or complex hashing algorithms, or write mountains upon mountains of jargon intended for academics, or news journalists. There’s no rhyme or reason in the pattern of behavior, other than the persistent expansion of information that may or may not have any practical use.

I try to stay away from that stuff, none of that stuff really matters to me, I don’t care, so as long as I have a market to trade tomorrow.”

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So, my business partner, Justin goes onto ask, “so what gives you an actual edge, what’s actually DIFFERENTIATING you from other people?” 

I go onto say, “I’ve been watching markets for a long, long time now. If you look at humans, they tend to follow certain routines, or habitual rituals. The market is a mirror into the human soul, or really, the same routine behavior seen in humans can be found in prices. After a while, days bleed into each other, and it all seems or feels about the same, so at that point it becomes easier to anticipate movements in price.

So, in my case I spent the past 15-years following patterns in the market, whether it’s stocks, commodity futures, forex, bitcoin, whatever. It’s all the same rhythm in behavior, but really at a different tempo. I like to think of the tempo, as volatility and liquidity. So, you may see the same type of behavior, or rhythm, but the pacing in the crypto market is much faster, so it’s like a quicker tempo.”

Justin goes onto say, “well that’s impressive and all buddy, I’ll call you in a week to see if you’re wrong.”

The price of Bitcoin falls from $7,400 to $6,100 that week.

Justin waits a couple weeks, and then calls me and asks, “okay what do you think, the price has gone back up, you think it’s a good idea to buy now?”

I respond back, “okay look now we’re rolling into the month of August. I’ll tell you what, this is the worst time of the year to buy risky assets.”

Justin replies back, “okay man, what do you mean?”

So, I tell him, “so my birthday is in August, right? I tend to pay attention to the month of August a bit closer. There were days the stock market dropped 8% on my Birthday.”

He responds back, “just a coincidence?”

I reply back, “so, August usually isn’t a good month. Most people get elated around their Birthdays and stuff, but not me. I’ve woken up losing more money on my Birthday than people can lose in all the creative ways they spend money bar hopping, buying expensive hookers, vacations, whatever on their birthday.”

So, following that dialogue with my business partner in the middle of July, we roll into August with expectations conforming closely to reality.

The price of Bitcoin fell 30% over the first 10-days of August.

The price of Bitcoin fell 10% on my birthday this year.

None of this surprised me, as I sold my coins before the beginning of August. And as a result, I avoided another record 52-week low in the market.

You start noticing things over the span of a lifetime, but all too often, people tend to give up before their mind is trained to recognize patterns.

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So, obviously I’m not saying that there’s an explicit guarantee of knowing what happens next, but intuitively if you immerse yourself in the movement of prices by gauging your own inner gut, or sentiment, you’re more likely to ride the market correctly.

If you read Civilization and Its Discontents by Sigmund Freud, humans are wired to avoid discomfort and pain, and optimize for pleasure. So, our minds, our psyche or subconscious mind is there to guard us from unwanted situations and towards pleasure.

So, the goal is to leverage your instinctual desire for survival, which is there, it exists. In some areas of our life, that instinctual desire to survive ties very closely to our emotional conditioning with money, and just like that, your brain will draw the relationship between pain and pleasure when it ties to money. Now, your brain already recognizes all of this, so it’s actually your job to be a bit more primitive, or be in a more primal state, so you can follow these primal instincts that helps with survival, or in this case, make profits from trading.

But, to really take advantage of this knowledge, you will need to trade on a cryptocurrency exchange that provides a lot of liquidity, reasonable commission spreads, access to high amounts of margin, and the ability to buy bitcoin or short bitcoin.

So, you need tools to take advantage of trading knowledge. Experienced traders and investors need a good brokerage platform, but in our case, many of the exchanges don’t offer conventional custodianship of funds on behalf of an account holder.

So, you have a few options for custodial-type accounts like Coinbase, but from there you have to transfer your coins to secondary exchanges to gain access to more pristine features.

How to leverage your Bitcoin

The best cryptocurrency exchange for day-traders is BitMEX.

It’s also a secondary exchange, that requires you to use Bitcoin exclusively to make trades.

This exchange transacts the highest volume of Bitcoin in the world on a 24-hour basis, it recently reported record daily volume of $8 billion on July 25th, 2018.

It’s not the most popular exchange in the world in terms of users, or amount of accounts.

BitMEX launched a couple years ago.

So, they don’t run ads aggressively, or do any aggressive marketing.

But, the Bitcoin Mercantile Exchange is used by the most sophisticated bitcoin traders in the world due to a number of features that cannot be found with other crypto exchanges.

Pair this with high liquidity, and you can trade huge blocks of Bitcoin on margin.

I mention this, because I’ve seen friends go to exorbitant lengths to borrow money from family and friends to buy Bitcoin before a major rally. It strains relationships when you borrow money from close friends and family, which is why I recommend BitMEX to everyone, above all else.

To put this in perspective let’s examine a realistic scenario for most people.

If you work really hard, the most an average people can put together in a year is $10,000, tops. You cannot eat through more Ramen noodles, cut more cable subscriptions, phone bills, whatever out of your life.

To put that money together, you’ve dug up every dollar from your daily budget possible.

This amount of money, when measured against the current price of Bitcoin buys you 1.6 Bitcoin. This is out of 17.2 million BTC in circulation, so you’re a small tadpole in a big ocean, so let’s say you wanted to own all the Bitcoin in the world, at $10,000 saved each year, it would take you 9.4 million years. That’s operating on geologic time, where rock formations change on the earth’s surface and stuff. So basically, you’re never going to get anywhere near close to owning the entire Bitcoin market.

Now, if you ask anyone in the world of investments, how they got rich, they mention the word leverage quite often. Private equity firms borrow money all the time, stock brokerage firms borrow funds from their clients and trade assets all the time, hedge funds use heavily leveraged strategies to make bigger returns. The world’s biggest hedge fund, Bridgewater Associates uses high amounts of leverage to achieve uncorrelated, yet risk-adjusted returns of 20% per annum. Heck, Warren Buffett (the richest investor of all time) bought stock warrants from Goldman Sachs, i.e. a call option, which is a highly-leveraged strategy.

The rich use some form of financial leverage, all the time, every day of the year.

DUH, it’s just common sense, right?

Well hold on, let’s illustrate this in human time again.

So, instead of waiting 10-years to save $100,000 (realistically speaking), what if you could gain access to $100,000 in under a year to buy or sell short bitcoin? 

That’s where BitMEX offers you up to 100x leverage. But, don’t bother trading 100x leverage, because you will lose your entire account on a 0.5% price move. The commissions are charged against the total value of your portfolio, so the commission rate round-trip for a 100x leveraged position is 15% of your base equity, so the more leveraged you are, the more commission you have to pay as a percentage of your account margin.

So, the commission structure of BitMEX is best optimized at 5x to 10x leverage, which in human terms means working five to ten fewer years to save the same amount of money. Or work 5x to 10x less hours to earn the same amount of money.

At 5x to 10x leverage the round-trip commission is .75% to 1.5% of your account margin. Meaning the commission is $150 on $10,000 at 10x leverage, as opposed to $1,500 in round-trip commission at 100x leverage.

In the same scenario, when the price of Bitcoin moves 1% in the money, you’re making 10% or $1,000. You pay $150 round-trip commission leaving you with $850 in profit. The price of Bitcoin moves by 1% all the time, every single day. So, even with a minimal amount of capital, like $10,000 you can make $850 from each trade quite easily, and if your success rate is 80%, you would lose $1,700 on 20% of your losing trades, and still earn $6,800 in profits from the other 8 trades assuming each trade targeted a 10% return. Factor in the commission of $150 x 10 roundtrip trades, and you’re left with $5,300 after spending $1,500 in trading commission.

So, if you spent 10-days trading each month and earned an extra $5,300 from a side hustle, would that interest you? 

What if you could make even more money when the price of Bitcoin drops?

So, let’s say you sell Bitcoin short, you make 10x the percentage move, or 10x a 5.5% move due to a correction. This equates into a 55% gain. So, on a decent day, the same $10,000 earned you a 55% profit, or $5,500.

After a round-trip commission of $232.5 you net a total profit of $5,268.

Maybe after a couple Bitcoin network transfer fees, and the Coinbase exchange fee of 2%-3%, you’ll walk away with $5,000 in profits from a single day.

The price of Bitcoin drops 5% to 10% ALL THE DAMN TIME. 

The average human works one month straight, 60 hours a week to earn $5,000 in most developed countries.

With 10x leverage and a $10K trading account, you can earn the same sum of money in a single trading session.

In fact, you can make money in whatever direction the market goes.

And, even if you have a million dollars, or ten thousand dollars, there’s enough liquidity to get those types of trades cleared within milliseconds.

So, enroll into a BitMEX account by using this special link.

You will also receive a special 10% discount on commissions for the next six-months.

Let’s say you make 100 round-trip trades over the next six-months with a $10,000 account.

You would be paying $150 x 100 round-trip, or $15,000 in just commissions.

If you save just 10% on those commissions, you’ll save $1,500 over the course of 100 trades.

If you live in the United States, you need to use a VPN service to open the website.

I recommend using Nord VPN.

Installing Nord VPN is easy, just use google to find the Nord VPN website.

Don’t forget to set the IP destination to a country outside the United States when enrolling for a BitMEX account.

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I will trade Bitcoin futures live on BitMEX for 30-consecutive days. I’m going to record each moment I enter and exit trades. I’ll keep a running log of how much money made/lost each day. I will show you how I’m trading Bitcoin, why my strategy is profitable, and explain how to use the strategy in a step-by-step format. This program will fully immerse you in both the psychological and technical aspect of trading and is intended for an advanced audience.

To follow me into trades, you may need a BitMEX account, so you can follow along with my market analysis and suggestions in future articles, where I discuss trading opportunities that’s tied specifically to Bitcoin futures.