Bitcoin has skyrocketed. This famous cryptocurrency surged close to $20,000 per token, and although there were some market adjustments, it doesn’t look like it’s slowing down yet.

Most of us are wondering: how can I afford Bitcoin at such a high price? Do I always need to buy and sell precious Bitcoins to make money? Can I make money regardless of whether Bitcoin prices are going up or down?

This article will give you all the answers to the above. We will show you how you can make money from Bitcoin without owning it. It’s all explained here when you trade Bitcoin Derivatives on Level01.


What are Bitcoin Derivatives?

Derivatives are tradeable contracts that derive their underlying value from assets such as Gold or Bitcoin. It allows traders to speculate on the asset’s price movements, in this case, Bitcoin, to make a profit or hedge a loss.

A derivative contract gives you the right but not the obligation to buy the underlying asset at a predetermined price. So this means, if you trade using Bitcoin derivatives contracts, you do not even have to purchase actual Bitcoins. You can speculate on its price movements.

Bitcoin is one of the three major crypto derivatives that you can trade on Level01, the others being Ethereum and Ripple. There’s a ton of benefits of why you should be speculating Bitcoin derivatives on Level01. We’ll take a look at each one of them below.


What are the Benefits of Trading Bitcoin Derivatives on Level01?

Start Trading From As Little As $6 Only
You read that right. It only takes $6 to start trading Bitcoin Derivatives on the Level01 platform. Why $6? The minimum requirement to open a derivative contract on Level01 has been reduced to 100 LVX, aka around $6 at current market value. Level01 utilizes its native token LVX and Ethereum (ETH) to facilitate trade on the platform. The current market price of just $6 or 100 LVX makes it affordable for anyone to start profiting from Bitcoin via derivatives trading.


Make Money Whether the Prices are Going Up or Down
Unlike stocks or cryptocurrency, derivatives enable traders to profit from price movements in both bearish and bullish markets. For example, if a trader believes that Bitcoin’s price will go down, he can open a derivative contract indicating his strike price and time, and if he is correct, he can profit from this price movement. Likewise, a trader could also make money if the price of Bitcoin goes up. There is no need for the trader to buy or sell actual Bitcoin. Nor is there a need to move precious Bitcoin in and out of the wallet each time.


Hedging Against Losses
Some traders use derivatives to hedge against losses they may face in crypto trading. Derivatives are an active risk management strategy: they work as insurance for your crypto portfolio. If you trade long term and when your Bitcoin price goes down, there is no need to sell at a loss. Instead, you can use Bitcoin derivatives to hedge against potential losses.


Fair Price Discovery and Wallet Autonomy
Price discovery mechanisms in derivative markets have evolved over the years. It has become more efficient, which leads to smoother market adjustments. For Level01, it is Bloomberg’s market data feed (B-PIPE) that furnishes real-time derivatives data to Level01’s proprietary FairSense AI, which then derives and provides real-time, dynamic, fair price value to all users of the decentralized platform.

Level01 Fairsense AI also provides traders with fair price analytics based on market price movements to make it viable for both parties of the trading contract. What Fairsense AI does is that it gives traders a win ratio of an asset like Bitcoin price going up or down. This technology makes it easier for anyone to trade Bitcoin derivatives.

All transactions on the Level01 platform are also automated and transparent, with profits instantly transferred to a trader’s wallet after the trade is completed. With all of these features in-built, traders can safely and securely trade Bitcoin derivatives without any worries.


Increased liquidity

In December 2020, Bitcoin has a market capitalization of more than 350 billion U.S. dollars. By enabling market makers to hedge against Bitcoin and thus maintain their positions in the Bitcoin derivatives market, we can expect the rise of crypto derivatives to grow and stabilize the market in terms of liquidity.

Additionally, Level01 has formed a partnership recently with AGDelta, the region’s leading digital wealth platform provider for private and public investments to private banks, asset managers, family offices, and tech-driven challenger banks. This partnership combines AGDelta award-winning data-driven distribution capabilities for the buy-side and Level01 specialty in decentralized P2P AI-guided derivatives trading with a proprietary fair pricing algorithm, which will then bring significantly enhanced investment products and liquidity to the market.


Trading Bitcoin Derivatives with Level01

If you are excited to start trading Bitcoin but cannot afford its astronomical price, Bitcoin derivatives are the best way to get started. Even if you are a seasoned Bitcoin trader, you should still look into Bitcoin derivatives on Level01 so that you can hedge against potential losses in your Bitcoin trade. Whether you are a beginner trader or a seasoned trader, Level01 offers you the added advantage of being the World’s 1st DeFi Platform with AI-Guided Derivatives Trading App.

It is easy to set up your Level01 app and will only take a few minutes:

Try the World’s 1st DeFi Platform with AI-Guided Derivatives Trading APP: Level01 APP

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