RATE Group | Bitcoin ‘Carry Trade’ Can Net Annual Gains With Little Risk, Says PlanB
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Bitcoin ‘Carry Trade’ Can Net Annual Gains With Little Risk, Says PlanB

07 Nov Bitcoin ‘Carry Trade’ Can Net Annual Gains With Little Risk, Says PlanB

Posted at 03:25h in Bitcoin News by

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Trading crypto assets, or any market for that matter, is a zero-sum game. When one person wins, someone else must lose, making trading highly competitive. That being said, consistently profitable strategies can be hard to find. Recently, PlanB, a crypto investor and analyst active on Twitter, described a Bitcoin (BTC) trading strategy that yields a stated 7-10% profit annually with limited downside risk. 

PlanB tweeted,  

“Bitcoin cash and carry (spot buying BTC and simultaneously future selling for delivery in 1-6 months) will net you 7-10% annualized return .. almost risk free.” 

PlanB’s strategy can be viewed as a form of arbitrage trading. Essentially, arbitrage is trading based on price discrepancies across multiple exchanges. If Bitcoin trades at $9,000 on one exchange and $10,000 on another, a trader can buy BTC on the cheaper exchange, transfer it to the more expensive exchange, and sell it there for a $1,000 profit per BTC. 

Over the past several years, the crypto…

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