Kris’ note: If we had to make a bet today on whether Bitcoin would be higher or lower one year from now…
We’d put our money on it being higher.
Of course, as the saying goes, gambling is a mug’s game.
And while we have a 50/50 chance of getting it right… we could get it wrong too (hence, 50/50).
Not to mention that a year is, well, a year away.
And during that time, if Bitcoin’s history is anything to go by, its price will likely fluctuate by thousands of dollars on either side of today’s price.
That’s the problem for those who want to buy Bitcoin for the potential explosive gains, but who aren’t necessarily interested in the “theory” (or dare we say it, the religion-like enthusiasm) side of Bitcoin.
Because, if you bought Bitcoin the day the Securities & Exchange Commission (SEC) approved the exchange-traded funds (ETF), you’re down around 20%.
As Bloomberg News reports:
Bitcoin has fallen over 20% since the Jan. 11 launch of the first exchange-traded funds investing directly in the token as speculators become more cautious about the potential impact of the products.
The digital asset spiked to $49,021 on the day the ETFs from issuers including BlackRock Inc. and Fidelity Investments went live.
But, how about if you could easily trade in and out of Bitcoin? Buy it for the short term if you think it’s going up… and short-sell it for the short term if you think it’s going down.
Doing that, using actual Bitcoin, isn’t that easy. Which is why Larry Benedict… a guy who has never bought a single Bitcoin or fraction of a Bitcoin in his life… regularly uses another way to trade Bitcoin’s ups and downs.
It’s a method that has delivered Larry and his subscribers a 63% win rate on Bitcoin-related trades since 2020.
So why invest now, and hope you’ll be up a year from now, if there’s a relatively straightforward strategy you could implement today to help you lock in multiple gains over the same period?
Furthermore – if history is anything to go by – it comes with a 63% win rate.
Today, we bring you another guest essay from trading master, Larry Benedict. Larry explains how he came “this close” to investing in Bitcoin back in 2016…
But decided against it…
And hasn’t regretted it for one minute since.
Find out why below, and on how Larry has found a way to trade (and profit from) Bitcoin without buying it, holding it, selling it, or bothering with the rigamarole of wallets and passwords.
Your editor will be back with our regular Daily Cut issue tomorrow…
Around 2016, a gentleman came to my office to tell me, “You’ve got to buy Bitcoin!” Bitcoin was trading around $1,000 at the time.
I’d been having a good year, so I had some capital to speculate with and was interested. I asked him to tell me more.
But that’s where it all went sideways.
When he started talking about putting money on an external drive and all the hoops to jump through… I passed on the chance.
I’m old-school, and I control risk closely. In fact, my careful management of risk led Jack Schwager to feature me in his book Hedge Fund Market Wizards, right after his chapter on Ray Dalio.
So all of the unusual steps sounded crazy to me.
Yet I watched its price run all the way up to more than $64,000 in 2021. That would have been more than a 6,000% return had I bought it when I had the chance.
Even at today’s lower prices, I still could have made more than 3,900%.
But I missed it. And you know what? I don’t regret it.
For every person who made millions on cryptocurrencies like Bitcoin, there are stories of others who had the chance and didn’t take it.
And there are many more who took the chance and lost thousands (and maybe millions) because they didn’t understand what they were doing and didn’t understand the risks.
But despite missing out, I didn’t let that stop me from looking for ways to profit from Bitcoin in a way that I could understand… and in a way that I knew would increase my chances of profiting, while allowing me to control my risk.
I used my nearly 40 years of expertise to uncover an alternative solution. And I found a trading opportunity that even has the potential to surpass Bitcoin’s gains.
Let me show you an example…
A 6X Bigger Win
In 2022, Bitcoin had become extremely correlated with the overall markets. And as most of us will recall, the markets were having a rough time.
From the beginning of that year to June, the S&P fell over 20%.
So given that correlation, it didn’t make sense to bet on anything but the downside in Bitcoin.
But in July, that negative pressure started to weaken. And Bitcoin regained some short-term momentum.
That meant it was time to put my trading strategy into action and open a position that would benefit from a recovery in Bitcoin.
And in just five days, we were able to make an 87% gain.
During the same window, Bitcoin itself only rose 13.5%.
So we were able to make over 6X using my strategy compared to buying Bitcoin directly.
Even better, we’re able to profit using this strategy even when Bitcoin isn’t going up…
On another occasion, Bitcoin was struggling to stay at its highs, and we saw an opportunity to the downside in this space.
And as Bitcoin fell -18.7%, we made 72.3%.
That’s part of what makes this trading method so powerful.
And by the way… this strategy doesn’t apply exclusively to Bitcoin (although that’s where I’ve achieved some of our biggest gains). I’ve used my strategy to help readers profit from market trends like AI, the bond market, energy, and more.
And that’s the reason I don’t want you to miss out on these types of opportunities…
Profiting Without Buying Bitcoin
Bitcoin and other cryptocurrencies aren’t for everyone.
You might look at the complexity of getting started – as well as the high volatility in this space – and struggle like I did.
That’s why this trading strategy is so powerful.
I call it “Bitcoin skimming.” That’s because we’re looking for opportunities in the cryptocurrency markets – without actually having to buy crypto.
You don’t need to open an account on a special exchange, come up with a fancy password, keep track of a hard drive that stores your crypto, or even worry about a crash in Bitcoin.
Bitcoin skimming is possible with just a normal brokerage account.
And I’d like to show you how it works tomorrow, January 24.
If you’re looking for incredible gains without having to buy Bitcoin, then this is the best strategy I’ve found so far. As I showed above, it can even return higher gains than Bitcoin over the same time period.
So I hope you’ll join me tomorrow, January 24, at 8 p.m. ET to learn all the details.
I’ve saved a spot for you for free, so all you have to do to attend is claim it right here.
Regards,
Larry Benedict
Editor, Trading With Larry Benedict
Market Data
The S&P 500 closed up 0.3% to end the day at 4,864.60… the NASDAQ gained 0.4% to close at 15,425.94.
In commodities, West Texas Intermediate crude oil trades at $74.50, down 51 cents…
Gold is $2,029 per troy ounce, up $7…
And bitcoin is $39,113, down $911 since yesterday.
More Markets
Today’s top gaining ETFs…
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Invesco China Technology ETF (CQQQ) +4%
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Global X MSCI China Consumer Discretionary ETF (CHIQ) +3.7%
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KraneShares MSCI China Clean Technology ETF (KGRN) +3.3%
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First Trust Brazil AlphaDEX Fund (FBZ) +2.9%
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iShares MSCI South Africa ETF (EZA) +2.7%
Today’s biggest losing ETFs…
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iShares U.S. Home Construction ETF (ITB) -4.6%
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SPDR S&P Homebuilders ETF (XHB) -3.1%
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WisdomTree India Earnings Fund (EPI) -3%
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Franklin FTSE India ETF (FLIN) -2.7%
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First Trust India NIFTY 50 Equal Weight ETF (NFTY) -2.5%
Mailbag
If you have any questions or comments for our experts here at Legacy Research, we’d love to hear from you.
Write to us at feedback@legacyresearch.com and just type “Daily Cut mailbag” in the subject line.
Cheers,
Kris Sayce
Editor, The Daily Cut