Lately I've started to make low quality you tube posts of my daily thoughts as they pertain to trading, they're fairly crap mostly just a way to focus my own thoughts and hold myself accountable.

But I thought a vid I made today was worth posting, I will link it below, but recap it here as most people hate (rightly so) watching through a video.

Puts
On Deribit you can buy puts. There are probably better explanations online about puts but I'll just use my last trade, where I bought puts for insurance against a fall, as an example.

I own bitcoin and ethereum, so when the price of bitcoin started to rise into the halving, I was happy as I was making money but I was also concerned. There were a lot of new/returning people investing and people seemed to be increasing there leverage as you can see from the increased activity on bitmex.

This coupled with the fact that the price was up a lot in the last week can lead to big pull backs, but on the other hand it can lead to continued run up that I don't want to miss out on.

So I bought puts at 9750, 9500 and 9000 on bitcoin and 200 and 210 on eth. These puts meant that I could sell my coins at these prices guaranteed. They expired on the 15th of May as I did'nt need any longer due to the halving event happening the 11th. Short time frame means cheaper puts.

bitcoin

https://imgur.com/eifMLrC

eth

https://imgur.com/5mbNMuN

I bought eth as well because although eth didn't go up with bitcoin if btc fell it is likely to bring eth with it.

What can happen
There are 3 things that can happen

Price down
As happened the price fell and although my underlying crypto assets fell in value the puts I bought, as they guarantee the ability to sell at a higher price, went up in value, greatly offsetting my losses. In this case I was happy to sell the puts in the $8,700 and $185 range as I am happy to be long the market in generally

Price up
The best result, your puts expire worthless, you have wasted the money you bought them for, but your underlying assets go up in value. And you had peace of mind that a fall in price wasn't a disaster, that is why puts are often called insurance.

Price does'nt move much
You need the price to fall enough for your puts to gain value or you need the underlying asset to go up enough to offset the puts cost. If neither happen all you got was the peace of mind.

I don't often buy options I much rather selling them but when situations like this arise it seems silly not to buy some insurance.

Any way here is the youtube vid that I ramble on about the same thing

https://youtu.be/7kSUb1heDy0

## Advertisement

My favorite site for trading is Bitmex, as the future contracts allow for lots of arbitrage opportunities and the leverage lets me leave most of my stash safe in cold storage.  If you don't already use it and would like to sign up, here is a [referral link](https://www.bitmex.com/register/wjyGH2) that will get you 10% off fees and rewards me with 10% of the fees you pay, we both win.

Similarly my favorite site for trading options is Deribit, Here is a [referral link](https://www.deribit.com/reg-10009.1179) for that.

A few of the exchange sites I also use are binance, bittrex and hitbtc, I find them about as good as the other exchanges to be honest but these have referral links so I figure I'd shill for them.

[Bitmex](https://www.bitmex.com/register/wjyGH2)

[Deribit](https://www.deribit.com/reg-10009.1179)

[binance link](https://www.binance.com/en/register?ref=SN0EVUEW)

[hitbtc link](https://hitbtc.com/?ref_id=5a5614d9ca2ba)

[bittrex link](https://bittrex.com/Account/Register?referralCode=WT0-42Q-0GM)

[bitfinex link](https://www.bitfinex.com/?refcode=hHGnz8Oq-)

## More posts

If you like this post follow for more, this account will be dedicated to posting about trading cryptocurrencies and maybe a bit of general stock markets. 

If that sounds good please consider up voting, following or reblogging.  If you are feeling particularly wild you could do all 3.

## Disclaimer

Please do not invest on the advice of a stranger on the internet, only use this advice here as a starting point for your own research, and then if you choose to invest please only invest an amount that you can afford to lose.

![dont-know-25547_960_720.png](https://steemitimages.com/DQmeFGZRGdBKh341vRR1q3d7TpABTHLCskXnyko899K5CaS/dont-know-25547_960_720.png)
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