On May 21, 2023, I bought 0.004 BTC Perpetual Futures at 26,912.10 while using the leverage of 125x on the bybit trading platform.
I come up with a plan for dollar cost average investment every week in Bitcoin perpetual Futures for 52 weeks
This is not trading advice. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset
On Week 1 (May 21, 2023) I bought a 0.004 BTC-Perpetual contract at $26,912.10, with a total worth of investment at $107. On week 2 I will buy BTC. long futures worth 2*125 at the market price, on week 3 I will buy 3*125 BTC long futures worth the market price... On week 52 I will buy 52*125 BTC long future worth the market price.
In that manner, I'll limit the downside risk by having the dollar cost average price.
A BTC perpetual future is a type of financial derivative contract that allows traders to speculate on the future price movements of Bitcoin without actually owning the underlying asset. It is designed to track the price of Bitcoin and provide an opportunity for investors to profit from both upward and downward price movements.
Unlike traditional futures contracts that have a set expiration date, perpetual futures contracts do not have an expiration date. They are designed to mimic a perpetual trading environment, allowing traders to hold their positions indefinitely as long as they meet the margin requirements.
In a BTC perpetual futures contract, the buyer (long position) agrees to purchase a specified amount of Bitcoin at a predetermined price in the future. The seller (short position) agrees to sell the same amount of Bitcoin at the same predetermined price. The difference in the contract price at the time of settlement is settled in cash.
Perpetual futures contracts often offer leverage, which means that traders can control a larger position with a smaller amount of capital. In the case of leverage of 125x means that for every dollar of my capital, I have control over 125 dollars' worth of Bitcoin.
For the next 52 weeks, I'm going to invest one additional dollar into Bitcoin's perpetual future and sell call options. All trades will be shared!