I think betting on price is good. Bitcoin has been around 300 to 450 for a lot of weeks.
I have never tried betting on volatility..
Topic: Coinut.com - Adequate strategy? (Read 714 times)
I have recently found coinut.com . It offers binary options with weekly expiry. On expiry the winning option gets 0.01 BTC payout.
I have made a small profit from it, last week, but is not sure how it is going to work out in this week.
Now had bought CALL options from 300 to around 380. Now, don't know how it is going to work out.
Found this in FAQ section: https://coinut.com/faq
So, the betting is done on volatility in this case.
Till now I have been betting on price.
http://btcvol.info/
Now, I am confused. Should I bet on price or on volatility?
I have made a small profit from it, last week, but is not sure how it is going to work out in this week.
Now had bought CALL options from 300 to around 380. Now, don't know how it is going to work out.
Found this in FAQ section: https://coinut.com/faq
Quote
How to trade when I cannot predict the direction of the underlying asset
Predicting the market direction is difficult, while predicting the volatility is relatively easier. Via options, you can trade volatility.
For example, if BTC/USD is now 400, and you know the volatility will be high, you can simultaneously buy a CALL option with strike price equal to 420 and a PUT option 380. Then you will be able to make profit no matter which direction BTC/USD goes in, because if it goes above 420, the CALL option will win, and if the price goes below 380, the PUT option will win.
Predicting the market direction is difficult, while predicting the volatility is relatively easier. Via options, you can trade volatility.
For example, if BTC/USD is now 400, and you know the volatility will be high, you can simultaneously buy a CALL option with strike price equal to 420 and a PUT option 380. Then you will be able to make profit no matter which direction BTC/USD goes in, because if it goes above 420, the CALL option will win, and if the price goes below 380, the PUT option will win.
So, the betting is done on volatility in this case.
Till now I have been betting on price.
http://btcvol.info/
Now, I am confused. Should I bet on price or on volatility?
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