A new algorithm company has allegedly discovered a way to limit the amount of crypto losses you incur.
How Can One Make Money without Worrying About Volatility?
One of the biggest problems surrounding crypto is its volatility. Bitcoin, for example, rose to nearly $20,000 in December of 2017, but had dropped down to approximately $3,500 by Thanksgiving the following year.
Cryptocurrencies were originally created as a means of providing money to those who couldn’t take advantage of traditional finance options thanks to their lack of credit or poor payment histories, but crypto largely couldn’t be accepted by retailers as tokens of payment thanks to their ongoing price swings.
In addition, many have lost money thanks to phony or fraudulent ventures. Initial coin offerings (ICOs) for example, used to be one of the most prominent and popular capital-raising methods out there, but ICOs have largely dropped off the map as of late. Many of the companies hosting ICOs either couldn’t garner the capital they needed or were suckering people in from the beginning.
Usually, these companies can walk away with the money they earn, while their investors are stuck with bruised egos, empty pockets and coins that serve no purpose.
But now, algorithmic digital assets trading and market making company GSR has found a way to potentially put an end to all these misgivings and allow traders to invest safely and comfortably in cryptocurrencies. Their latest product is known as the “Bitcoin Halo Option,” and it will reportedly change the derivatives market unlike anything enthusiasts have seen.
Users who are interested in potentially taking advantage of Bitcoin Halo will be required to pay a fee upfront. Once the option is purchased, they can start trading with a value of zero. That person is then able to initiate up to ten separate trades per day in either bitcoin or USD.
Once a maturity date is reached (the process allegedly works similarly to a CD), the investor will get his or her payout if they have made money or if their funds possess a “positive value.” At the same time, if they’ve incurred negative losses, they won’t lose their initial investment.
The creators have released a written post explaining the product. It reads:
This is analogous to an insurance policy on the trading account where the holder enjoys all the profits of the strategy of maturity, but should there be losses, then no further cashflow takes place.
There’s a Theme, Here
Among GSR’s team of experts include two former members of banking giant Goldman Sachs. In addition, the company also boasts staff members from companies like Circle, IBM, Oracle and Nomura International.
As of late, crypto traders have seen a sudden burst in crypto derivatives products, including a new market for “physically-delivered futures for crypto” released by Coin Flex.