Accessing Wealth-Creation Opportunities Through Market Volatility
Categories: Crypto News US
Cryptocurrencies are inherently and, as posterity would indicate, irrevocably volatile; writing for Forbes in 2013, journalist Timothy Lee penned a polemic about the perils of Bitcoin volatility, however sought to reassure readers that this was largely due to its relative infancy, and the fact that it was, at the time of writing, a “startup currency”.Almost a decade on, and various dalliances with a >$1trillion market cap later, one thing can be held as an immutable truth about Bitcoin; its volatility is here to stay, and can’t be attributed solely to its longevity (or lack thereof), in the wishful hope of its dissipation over time Consider the inverse scenario, and the landscape we would find ourselves in were there to be a scarcity of volatility, and therefore price movements, within the crypto markets, as opposed to an abundance: without substantial movements in price, traders would find themselves without opportunities to achieve substantial profits.The opportunities presented by market volatility are so well established, and experienced traders have been savvy to them for so long, that Investodia have even compiled a list of the most widely used and well-known trading strategies which investors employ to capitalise on market fluctuations. Opportunity from Chaos As it stands today, the only trading platform to offer investors access to the Bitcoin VIX is Globe Exchange; a crypto derivatives exchange, offering an array of perpetual markets where traders can leverage their capital up to 100X. The methodology behind Globe’s BTC-VIX is derived from the Chicago Board Options Exchange White Paper, which relies on gathering bid and ask quotes for options expiring between 23 and 37 days from the current point in time and reversing out the volatility implied by the options prices with a structured weighting and blending methodology to settle on an 30-day forward looking implied volatility. Whilst a more up-to-date report, factoring in recent volatility events, may alter the conclusions and inductions of this research, the fact remains demonstrably true that institutions are committed to educating their users, and providing traders with the resources needed to demystify markets and access previously unobtainable opportunities.Through this, and through the access they provide to exotic and novel markets such as the BTC-VIX, exchanges such as Globe are empowering a new generation of investors to achieve wealth-creation opportunities not just from speculating on future asset prices, but from the inherently volatile nature of cryptocurrency markets, regardless of the direction in which prices happen to be moving on a given day.