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Volatility is a real issue (or advantage perhaps? Depending on how you see it) in the crypto markets. Regardless, proper risk management is a must if you want to survive. The risk reversal options strategy in crypto is a pretty flexible one in this regard, and it can save your investments from decimation.  

How to use it, and what does a risk reversal options strategy entail? Before you bombard us with a truck full of questions, all answers are coming in due time, so sit tight and lend us your eyes. Here we go:  
<h2>What is a Risk Reversal Option Strategy?</h2>
Academia trains us to always learn definition first instead of a practical example that honestly makes things easier to understand, but who are we to break the age-old cycle?

Risk reverse is all about actively hedging your investments with crypto options contracts. For long positions, this involves selling calls (right to buy) and buying puts (right to sell), and for short positions, this involves the exact opposite. 
<h2>How Does a Risk Reversal Options Strategy Work?</h2>
Let’s simplify the mechanics of a risk reversal options strategy. We’ll take two scenarios.

Firstly, let’s assume trader A has a long position open in the crypto market. They can now use a short risk reversal option strategy to hedge this position. All trader A needs to do now is buy an out-of-the-money (OTM) put option (this means the strike price of the option is below the current market price of the underlying asset) and sell an out-of-the-money call option (strike price is above the current market price). Both options need to have the same date of expiry for this strategy to work out well.  

Now, any potential profits and losses will emerge out of market movements against or for the underlying long position. 

On the other hand, say trader B has a short position; they can put a long risk reversal options strategy to use. They have to sell a put and buy a call, so there’s a limit to the possible profits while any volatility-related risks to the aforementioned short position is taken care of. 

We know, we know, this sounds too complex. But trust us, it’s easier to execute than it sounds once you have gotten the hang of <a href="https://guides.delta.exchange/delta-exchange-user-guide/derivatives-guide/options-guide">crypto options</a>. 
<h2>Pros vs Cons of Risk Reversal Option Strategy in Crypto</h2>
So, is risk reverse with crypto options for you or not? What could be better than a pros and cons list to understand it:
<table>
<tbody>
<tr>
<td>Pros of Risk Reversal Options Strategy</td>
<td>Cons of Risk Reversal Options Strategy</td>
</tr>
<tr>
<td>Firstly, risk reverse helps you limit risks to your existing positions, which automatically makes it deserving of due consideration. </td>
<td>No doubt, risk reversal option strategy is a pretty complex thing to execute, and you can suffer severe losses if you don’t do your market research well enough. In one sentence: not safe for metaphorical toddlers to the world of crypto.</td>
</tr>
<tr>
<td>Plus, in a risk reversal options strategy, you can speculate on the upcoming prices for a certain crypto without risking a significant part of your funds. You can profit from the direction you expect the market to take in the short or long term without investing a lot of extra capital, or closing any positions you already have. </td>
<td>Multiple rounds of transaction costs for you to bear, comes with the multiple positions you’re opening to implement hedging in your portfolio. You don’t wager off a significant part of your savings, but it still adds up over time. </td>
</tr>
<tr>
<td>You can alter the strategy based on your risk appetite while having greater control over your exposure to the crypto market. You’re combining buying and selling crypto options, so you can take into account any short-term catalysts; for example, if you want to protect your investment against a potential price drop due to say a socio political event in the coming days, you can choose an option which will pay you when the market price drops below a certain level.  </td>
<td>No more cons, the pros have won this match.</td>
</tr>
</tbody>
</table>
 

And there you have it, the advantages vs disadvantages of risk reversal options strategy. Don’t go just yet, there’s more!
<h2>How Does Risk Reversal Option Strategy Help Avoid Slippage?</h2>
The ‘slippage’ term arrives only because risk reverse in options is often countered with a <a href="https://www.delta.exchange/blog/support/types-of-stop-orders-and-how-to-use-them">stop loss/take profit</a> order by many. In a stop loss order, you set a price point where your position is closed. Say you have a stop loss of $60,000 in a BTC long position right now. 

If the market moves too quickly and drops past your stop level before your stop loss can get activated, it might get fulfilled at around $59,500. The loss of $500 is your slippage.

A risk reversal options strategy does not have the same shortcoming- because it has a contractually set price over a fixed time period.  
<h2>Real Talk: How Can You Use a Risk Reversal Options Strategy?</h2>
We at Delta like practical examples instead of theoretical discussions, so here’s how you can execute a risk reversal option strategy:
<ul>
 	<li style="font-weight: 400;" aria-level="1">Bitcoin has a raging bull market going, so we’re going with our undisputed king for this example. Let’s take Bitcoin’s price as $71,000.</li>
 	<li style="font-weight: 400;" aria-level="1">Let’s say you want to long Bitcoin but fear the Bitcoin halving period may cause a slight price drop, so you need a short risk reversal options strategy. First, write a call, say with an expiration date of April 30, 2024, and with a strike price of $75,000. Next, buy a put, with the same date of expiry and a strike price of $69,000. </li>
 	<li style="font-weight: 400;" aria-level="1">Now in the short term, if Bitcoin prices indeed fall, the call expires out of the money, and the put expires in the money. </li>
</ul>
Note that we have taken these price points simply as references; in no realistic scenario do we believe the everyday trader can experiment with contracts at these price ranges. Consider your risk appetite, and invest accordingly. DYOR always!

Risk Reversal Options Strategy in Crypto

Smart contracts in the Bitcoin network. Sounds interesting? That's precisely why Bitcoin BitVM has been attracting a lot of notice from the community in recent months. The concept of Bitcoin Virtual Machine (BitVM) emerged from a paper authored by noted blockchain developer Robin Linus in 2023 titled 'BitVM: Compute Anything on Bitcoin.'

Bitcoin BitVM is touted to revolutionize the Bitcoin network's use cases. Let's examine the subject in detail through this blog!
<h2>What Does Bitcoin BitVM Mean?</h2>
The Bitcoin Virtual Machine, or BitVM, is a concept that aims to expand Bitcoin’s functionalities without changing the original Bitcoin network. In his paper, Robin Linus defines BitVM as a ‘computing paradigm to express Turing-complete Bitcoin contracts.’

A modification in Bitcoin’s project protocol, or a fork, creates an entirely separate blockchain. Here’s where BitVM makes a difference. It enables the execution of smart contracts on Bitcoin by avoiding a fork. It essentially solves the scalability issue on the Bitcoin network by processing all complex computations off-chain, including smart contracts.

On the other hand, lowering congestion on the Bitcoin network could also decrease processing times or fees, which in turn could potentially lead to several use cases. However, when Linus published his paper, BitVM was limited to only two parties. In any dispute between the parties, on-chain execution on the Bitcoin network is required.

Wondering how the Bitcoin Virtual Machine works? Read ahead!
<h2>Working of Bitcoin BitVM</h2>
BitVM’s architecture enables transactions between the two parties called ‘prover’ and ‘verifier.’ As the names suggest, the BitVM system depends on a challenge-response protocol and fraud proofs. Let us go over it in detail.

The computation between the two parties is initiated by the prover, who also evaluates the smart contract and its expected result. On the other hand, the verifier authenticates the computation and checks its authenticity and accuracy.

Both parties also sign a series of transactions before the computation and make deposits into the smart contract. Once the smart contract is activated, any party attempting fraud loses their deposit while the other party receives it.

Dispute resolution between the two parties is done by executing conditions of the smart contract on-chain. Bitcoin's on-chain validity checking mechanism penalizes both the prover and verifier if the former is fraudulent or if the latter rejects valid computations.  
<h2>How Does BitVM differ from EVM?</h2>
The Ethereum Virtual Machine (EVM) acts as the core foundation of the Ethereum blockchain, executing all its smart contracts and processing transactions. Developers can also use EVM to create dApps and smart contracts. 

Conceptually both BitVM and EVM could sound the same, but they have stark differences. Here are all the details about the ‘BitVM vs EVM’ debate:
<ul>
 	<li style="font-weight: 400;" aria-level="1">Firstly, BitVM can presently only handle computations between two parties. EVM is far more versatile, enabling multi-party transactions. As a result, relatively more complicated smart contracts can be executed on EVM.</li>
 	<li style="font-weight: 400;" aria-level="1">BitVM processes all transactions entirely off-chain, except in case of disputes. On the other hand, EVM leverages the Ethereum blockchain and conducts all transactions on-chain.</li>
 	<li style="font-weight: 400;" aria-level="1">The functionalities and goals of BitVM and EVM are entirely different. BitVM is an addition to the Bitcoin blockchain that reduces activity on the native network by executing off-chain computations. However, EVM acts as the key component for Ethereum, and it is central to the blockchain’s use case as a decentralized finance (DeFi) platform. Hence, ‘BitVM vs EVM’ has broadly precise explanations.</li>
</ul>
<h2>Can BitVM expand Bitcoin use cases?</h2>
BitVM can be instrumental in taking Bitcoin’s scope beyond its current use cases. One could create applications on top of Bitcoin using BitVM. All of it could be done without tweaking the Bitcoin network. In his paper, Robin Linus also argues that BitVM acts as a bridge between Bitcoin and other blockchain networks.

BitVM could provide a big impetus to apps related to the gaming sector, especially in two-way games like Chess or Poker. Moreover, the Bitcoin Virtual Machine’s smart contract functionality could induce use cases of advanced payment solutions involving big-volume transactions. It could mark a significant development for the Bitcoin network, which is only used for peer-to-peer payments currently.

Other two-party applications, such as DeFi apps, decentralized exchanges, and betting apps, could also be developed using BitVM. The efficiency and low-congestion model of BitVM could be used to hedge Bitcoin’s impact on the environment, giving rise to various environment-friendly use cases.

Over time, BitVM may continue to evolve and profoundly impact the crypto sector. Coupled with Bitcoin’s growing use cases with the help of BitVM, the crypto industry will likely see new innovative solutions in the near future!

Bitcoin BitVM: What is it all about?

Dear Delta Exchange Traders,

We wanted to let you know about the upcoming change in trading fees.

We are revising our trading fees. The new trading fees are listed below and will be effective from 00:00 UTC, 15 March 2024.
<table class=" alignright" style="width: 100%; border-collapse: collapse; border-style: solid; border-color: #050000;">
<tbody>
<tr>
<th style="width: 24.2972%; border-style: solid; border-color: #050000;">Category</th>
<th style="width: 14.4578%; border-style: solid; border-color: #050000;">Taker Fees</th>
<th style="width: 15.3614%; border-style: solid; border-color: #050000;">Maker Fees</th>
<th style="width: 21.0843%; border-style: solid; border-color: #050000;">Settlement Fees</th>
<th style="width: 24.7992%; border-style: solid; border-color: #050000;">Liquidation Factor</th>
</tr>
<tr>
<td style="width: 24.2972%; border-style: solid; border-color: #050000;">Inverse Futures</td>
<td style="width: 14.4578%; border-style: solid; border-color: #050000; text-align: right;">0.06%</td>
<td style="width: 15.3614%; border-style: solid; border-color: #050000; text-align: right;">0.04%</td>
<td style="width: 21.0843%; border-style: solid; border-color: #050000; text-align: right;">0.06%</td>
<td style="width: 24.7992%; border-style: solid; border-color: #050000; text-align: right;">0.2</td>
</tr>
<tr>
<td style="width: 24.2972%; border-style: solid; border-color: #050000;">USDT Linear Futures</td>
<td style="width: 14.4578%; border-style: solid; border-color: #050000; text-align: right;">0.06%</td>
<td style="width: 15.3614%; border-style: solid; border-color: #050000; text-align: right;">0.04%</td>
<td style="width: 21.0843%; border-style: solid; border-color: #050000; text-align: right;">0.06%</td>
<td style="width: 24.7992%; border-style: solid; border-color: #050000; text-align: right;">0.2</td>
</tr>
<tr>
<td style="width: 24.2972%; border-style: solid; border-color: #050000;">ALT-BTC Futures</td>
<td style="width: 14.4578%; border-style: solid; border-color: #050000; text-align: right;">0.1%</td>
<td style="width: 15.3614%; border-style: solid; border-color: #050000; text-align: right;">0.1%</td>
<td style="width: 21.0843%; border-style: solid; border-color: #050000; text-align: right;">0.1%</td>
<td style="width: 24.7992%; border-style: solid; border-color: #050000; text-align: right;">0.2</td>
</tr>
<tr>
<td style="width: 24.2972%; border-style: solid; border-color: #050000;">Options</td>
<td style="width: 14.4578%; border-style: solid; border-color: #050000; text-align: right;">0.0375%</td>
<td style="width: 15.3614%; border-style: solid; border-color: #050000; text-align: right;">0.0375%</td>
<td style="width: 21.0843%; border-style: solid; border-color: #050000; text-align: right;">0.0375%</td>
<td style="width: 24.7992%; border-style: solid; border-color: #050000; text-align: right;">0.5</td>
</tr>
<tr>
<td style="width: 24.2972%; border-style: solid; border-color: #050000;">MOVE & Spreads</td>
<td style="width: 14.4578%; border-style: solid; border-color: #050000; text-align: right;">0.0375%</td>
<td style="width: 15.3614%; border-style: solid; border-color: #050000; text-align: right;">0.0375%</td>
<td style="width: 21.0843%; border-style: solid; border-color: #050000; text-align: right;">0.0375%</td>
<td style="width: 24.7992%; border-style: solid; border-color: #050000; text-align: right;">0.5</td>
</tr>
<tr>
<td style="width: 24.2972%; border-style: solid; border-color: #050000;">Spot</td>
<td style="width: 14.4578%; border-style: solid; border-color: #050000; text-align: right;">0.075%</td>
<td style="width: 15.3614%; border-style: solid; border-color: #050000; text-align: right;">0.075%</td>
<td style="width: 21.0843%; border-style: solid; border-color: #050000; text-align: right;">NA</td>
<td style="width: 24.7992%; border-style: solid; border-color: #050000; text-align: right;">NA</td>
</tr>
</tbody>
</table>
 

Please note the following:
<ul>
 	<li style="font-weight: 400;" aria-level="1">Trading fees for Options, MOVE and Spread contracts are capped at 12.5% of premium to prevent high fees on trades involving deep OTM options.</li>
 	<li style="font-weight: 400;" aria-level="1">The revised fee structure will start reflecting on your fills that are executed after the above said date irrespective of whether the order is placed before 15 March 2024.</li>
 	<li style="font-weight: 400;" aria-level="1">The rebates offered in the VIP program will remain unchanged. However, the actual fee rates will get updated based on the changes mentioned above.</li>
</ul>
We appreciate your business and look forward to supporting your trading requirements. If you have any further queries about these upcoming changes, please reach out to our support.

Trading Fees Revision

Crypto is over 15 years old now, almost legal for it to drive a car in the US. What this means is that traders have had quite some time to try out different kinds of crypto trading strategies- most are twisted tales made up from traditional market investment strategies. However, the world of crypto gives these familiar plans quite the makeover. High-frequency crypto trading (HFT) is one such area.

The fun bit is that the high-frequency trading in crypto strategy makes use of the same volatility many conventional traders fear to make significant money. How does it work though? Let’s find out!
<h2>What is High-Frequency Trading in Crypto?</h2>
The name itself spells it out for you, but let’s look into the definition anyway:

In the conventional sense, high-frequency trading uses technology to execute a large number of trades in nanoseconds. Once specific parameters are laid out for an asset’s price, these algorithms are specially built to execute high-speed trades as the conditions are fulfilled. 

Now, let’s put it into the context of crypto. High frequency trading cryptocurrency is a hands-free thing, where you use specific algorithms, AI programs, and data feeds for several crypto exchanges to watch over the market and perform a great number of trades in seconds when specific price conditions are met. 

HFT setups can be altered and customized, of course. 
<h2>High-Frequency Trading in Crypto vs. Traditional Markets: How is it Different?</h2>
Well, it doesn’t take a genius to know that the main difference between the two lies in the trading environment utilized.

Here’s a quick nice table summarizing the differences between high-frequency crypto trading vs. HFT in traditional markets:

 
<table style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 33.3333%;">Attributes</td>
<td style="width: 33.3333%;">HFT Crypto</td>
<td style="width: 33.3333%;">HFT Conventional Markets</td>
</tr>
<tr>
<td style="width: 33.3333%;">Environment </td>
<td style="width: 33.3333%;">Happens on decentralized or centralized exchange platforms with decentralized assets.</td>
<td style="width: 33.3333%;">Happens on the usual centralized exchange platforms.</td>
</tr>
<tr style="height: 120px;">
<td style="height: 120px; width: 33.3333%;">Time Required</td>
<td style="height: 120px; width: 33.3333%;">Some trades can take a while to get executed, as the block time varies between blockchains. For example, on the Bitcoin blockchain, the block-time can be 10 minutes, delaying transactions. Ethereum on the other hand can take between 15 seconds to a few minutes to execute transactions.</td>
<td style="height: 120px; width: 33.3333%;">Time required is less, because while the decentralized environment waits for the entire network to reach consensus, centralized platforms and assets have no such requirement. </td>
</tr>
<tr style="height: 120px;">
<td style="height: 120px; width: 33.3333%;">Transparency </td>
<td style="height: 120px; width: 33.3333%;">Blockchains are transparent, which means everyone can see which orders you place for how much on blockchains like Bitcoin. This can be both a boon and a curse because the transparency, while guaranteeing better security, also makes HFT crypto vulnerable to issues like front-running attacks. </td>
<td style="height: 120px; width: 33.3333%;">Low to zero transparency, so lower chance of attacks but also it’s easier to dupe you. What else do you expect from centralization in finance, really?</td>
</tr>
<tr style="height: 72px;">
<td style="height: 72px; width: 33.3333%;">Transaction Expenses </td>
<td style="height: 72px; width: 33.3333%;">Take Ethereum for example, <a href="https://www.delta.exchange/blog/what-is-ethereum-gas">gas costs </a>for transactions can vary depending on the timing of transactions. So you can not always plan ahead when it comes to <a href="https://www.delta.exchange/blog/what-are-blockchain-transaction-fees">transaction fees</a>.  </td>
<td style="height: 72px; width: 33.3333%;">More predictable, so you can plan expenses in advance. </td>
</tr>
<tr style="height: 48px;">
<td style="height: 48px; width: 33.3333%;">Regulation </td>
<td style="height: 48px; width: 33.3333%;">The world of crypto has less regulatory clarity around the world, the same issue persists for high-frequency crypto trading.</td>
<td style="height: 48px; width: 33.3333%;">Your trades are better regulated. </td>
</tr>
</tbody>
</table>
Got all that? Good. Now time for some strategizing: what are some good ways to practice high frequency trading cryptocurrency in crypto? 
<h2>Strategies for High-Frequency Crypto Trading</h2>
There are several time-tested strategies you can use in high-frequency crypto trading:
<ul>
 	<li style="font-weight: 400;" aria-level="1">Arbitrage in Crypto: This is super fun, and all you have to take into account is the slight difference in the same crypto’s prices across different platforms. So basically you buy a crypto (say Bitcoin) from an exchange where it is priced at $53,865, and sell it on an exchange where it is valued at say $54,506. One such trade may seem trivial, but imagine hundreds of similar trades executed in seconds. Cool and devious, isn’t it?</li>
 	<li style="font-weight: 400;" aria-level="1">Scalping: Another strategy that benefits from small price changes in a day. Basically you buy and sell the same asset throughout the day, hoping to earn small profits as the price increases even by a minuscule amount. Again, the small water droplets add up to make an ocean. Well, at least a lake.</li>
 	<li style="font-weight: 400;" aria-level="1">Market Making in Crypto: This is again all about capturing small price shifts. You supply exchanges with crypto you own, so others have an easier time trading their own assets. This HFT crypto strategy allows you to profit from the difference between the ‘bid price’ or the price a buyer pays for a crypto, and the ‘ask price’ or the lowest price a seller is willing to give. You can place multiple <a href="https://www.delta.exchange/blog/support/limit-orders">limit orders</a> on both buy and sell sides to earn from the aforementioned price difference. </li>
 	<li style="font-weight: 400;" aria-level="1">Momentum Trading: This one is easy too, basically the HFT crypto algorithms track the current market sentiment and go with the flow to earn profits, and hone in on sharp up or downward movements. </li>
</ul>
<h2>Pros vs. Cons of High-Frequency Trading in Crypto</h2>
Of course, your brain can not make your own decisions without looking at a pros and cons list. Once again a table for you to evaluate the advantages and disadvantages of high-frequency crypto trading:
<table style="border-collapse: collapse; width: 100%;">
<tbody>
<tr>
<td style="width: 63.2096%;">Pros of HFT Crypto</td>
<td style="width: 36.6812%;">Cons of HFT Crypto</td>
</tr>
<tr>
<td style="width: 63.2096%;">Since you are using AI and specific algorithms for high-frequency crypto trading, there is zero chance of human errors, and decision-making is faster than you’d ever be capable of, allowing you to capitalize on more opportunities than ever.</td>
<td style="width: 36.6812%;">Not a beginner-friendly way to trade, as you’d need to know the crypto market well first to program your HFT crypto setup right.</td>
</tr>
<tr>
<td style="width: 63.2096%;">HFT crypto can take advantage of any market condition- regardless of upward or downward trajectory. Benefiting from volatility without caring for the direction is the best way to go in the crypto market. </td>
<td style="width: 36.6812%;">There’s a notable upfront cost required to access the necessary equipment. </td>
</tr>
<tr>
<td style="width: 63.2096%;">The profits are significant in comparison to the efforts you have to put in.</td>
<td style="width: 36.6812%;">As you make numerous trades, the fee you have to pay is sizable as well.</td>
</tr>
</tbody>
</table>
Well, there you have it- the pros and the cons both. You’re now the best judge for whether high-frequency crypto trading is a you thing or not.

Keep reading the <a href="https://www.delta.exchange/blog">Delta Exchange blog</a> for more detailed insights into the crypto market, and <a href="https://www.delta.exchange/app">hit us up</a> to try a derivative trade in crypto or two (or hundreds)!

High-Frequency Crypto Trading (HFT) Strategies

Over 420 million people own crypto in the world right now, and crypto is, without a doubt, the talk of the hour for investors. The best part of the asset class is that while you can do some straightforward spot trading, you can also get up on platforms like <a href="https://www.delta.exchange/">Delta Exchange</a> to trade in crypto derivatives- the likes of crypto futures and options. And if crypto futures is your cup of tea, for instance, you would need the knowledge of the long short ratio to cash in on the instrument just right.

What is the long to short ratio? The understanding begins at knowing the answer to ‘what is long position and short position?’  
<h2>What is Long Position and Short Position?</h2>
You may have heard terms like ‘<a href="https://www.delta.exchange/blog/the-ultimate-guide-to-shorting-bitcoin">shorting Bitcoin</a>’ used by traders before. Crypto long and short positions are essentially opened based on the direction you expect the market to go in when you buy a futures contract. Hopes for price increase lead to a long position and short position is opened when you expect the price to go down.

For a better understanding, you can think of crypto long and short positions as respectively buying and selling a crypto. You may see more long positions when most traders hope for a bullish market, while more in favor of short positions can mean the majority expects prices to go down. 

Here’s a quick look at long position vs short position against each other:
<table>
<tbody>
<tr>
<td>Long Position </td>
<td>Short Position</td>
</tr>
<tr>
<td>In the crypto futures market, getting into a long position is equivalent to buying a crypto in the spot market in hopes of its prices going up in the future. </td>
<td>On the other hand, out of long and shorts, a short position is akin to selling a crypto because you think its prices will go down. </td>
</tr>
<tr>
<td>Out of long position vs short position, the potential profit in a long position is unlimited, as the price of the crypto can theoretically increase indefinitely. On the other hand, the potential loss is only limited to the initial investment.</td>
<td>Out of crypto long and short positions, the potential profit in a short position is limited to the initial value of the cryptocurrency, but the potential loss is theoretically unlimited. This means if the price rises significantly, short sellers would face substantial losses.</td>
</tr>
</tbody>
</table>
<h2>What is the Long Short Ratio in Crypto Futures?</h2>
You may have an idea already, but the long to short ratio basically shows the strength of bullish or bearish feelings in the market. It is one of the sentiment analysis indicators regularly checked by both rookie and pro traders to gauge how the broader market feels about a certain crypto.
<img class="aligncenter wp-image-34486" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/02/btc-longshort-ratio-1024x459.png" alt="btc long/short ratio" width="800" height="359" />
If you take a look at the figure above, this is what a typical long to short ratio chart looks like. If you look carefully, in terms of shorts vs longs, there are some 24 hour candles with more green, while some are more red. The more red candles show a day with bearish sentiments as per long to short ratio reading, while the more green candles show a bullish day as per long short ratio.  

As you can see, due to various macroeconomic factors, the broader market sentiment shifts everyday, resulting in shifting long short ratios as well.  

The significance of the long short ratio is high for crypto future traders:
<ul>
 	<li style="font-weight: 400;" aria-level="1">A long to short ratio above 1 stands for bullish sentiments, while a long short ratio below 1 shows dominance of the bears.</li>
 	<li style="font-weight: 400;" aria-level="1">You may argue that a majority vote does not automatically imply they are correct, and you’d be right, because in many cases wrong opinions spread massively because of FOMO (fear of missing out) and FUD (fear, uncertainty, and doubt). However, even when you use other <a href="https://www.delta.exchange/blog/best-technical-indicators-for-crypto-options-trading">technical indicators</a> to more precisely gauge the future of the market, you must take the long short ratio into account for the short term. This is because public sentiment is in large part responsible for affecting a crypto’s prices as the value of digital currencies depends on their perceived value by the users in the absence of a centralized backing. </li>
</ul>
<h2>How is the Long to Short Ratio Calculated?</h2>
Shorts vs longs are compared to arrive at an accurate long short ratio; the number of long positions is divided by the number of short positions. So if there are 30 long positions compared to 15 short positions, the long to short ratio will be 2. 

Evaluating the number of long position vs short position, a long short ratio above 1 signifies more long positions in the market, while a ratio below 1 means there are more short positions. The first event shows positive sentiment, with the latter showing negative emotions. 

To conclude, the long to short ratio can help a crypto futures trader gauge the percentage of crypto long and shorts for a certain historic period, and evaluate the history of a crypto accordingly. Knowing public sentiments can give you a good insight into market trends.

However, as always, do not rely on this single indicator to tell you about the crypto market, and expand your research across several technical and fundamental indicators to understand the potential of a crypto before you make a futures trade.

What is Long Short Ratio and How to Use it for Crypto Futures Trading?

Spot Bitcoin ETFs (exchange-traded funds) are all the rage now, with the US SEC (Securities and Exchanges Commission) greenlighting 11 Bitcoin spot ETFs at once after resisting crypto ETFs for years. This historic event has pulled bullish enthusiasm into the crypto market, and opened the floodgates for conventional investors to get into crypto once and for all. 

Though you may be wondering why spot Bitcoin ETFs in just this one country have positive implications for the global crypto space. In this post, we’ll simplify crypto ETFs for you: from their definition to their working to the weight of this decision from the SEC, and even the future possibilities.
<h2>What are Spot Bitcoin ETFs?</h2>
When someone mentions Bitcoin ETFs, the first question you need to ask is whether it has Bitcoin itself as an underlying asset. A Bitcoin spot ETF essentially gives you direct exposure to the current price of Bitcoin. As ‘spot’ trading crypto suggests trading crypto in real time, spot crypto ETFs allow you to do something similar. These ETF shares track the current value of Bitcoin closely.

Other countries in the world have their own spot Bitcoin ETFs already, such as several offerings in Brazil, including one from Itaú Asset Management and Galaxy Digital. But the US is the beating heart of global finance, and yet until January 2024, it neither had the country regulated its crypto sector nor had it approved instruments like spot crypto ETFs, which bring traditional investors a higher stake in crypto than future ETFs. This is precisely why spot Bitcoin ETFs in the US now symbolize the country taking one step closer to recognizing crypto, propelling other nations to follow suit.
<h2>How do Spot Bitcoin ETFs Work?</h2>
Spot Bitcoin ETFs represent the real-time price of bitcoins. Here’s how Bitcoin spot ETFs work, step by step:
<ul>
 	<li style="font-weight: 400;" aria-level="1">The crypto ETFs in question buy bitcoins through crypto exchanges or in a peer-to-peer manner from Bitcoin holders.</li>
 	<li style="font-weight: 400;" aria-level="1">The custodian holds the purchased bitcoins in a digital wallet, and is responsible for managing them. </li>
 	<li style="font-weight: 400;" aria-level="1">Here you may note that these bitcoins are usually stored in offline (or cold) crypto wallets to avoid any threats of hacking.</li>
 	<li style="font-weight: 400;" aria-level="1">Now, Bitcoin spot ETFs issue shares relevant to the number of bitcoins they have in custody. The price for each share parallels the market price of the crypto in question.</li>
 	<li style="font-weight: 400;" aria-level="1">These spot Bitcoin ETF shares are then made available on conventional stock exchanges for the general public to access.</li>
 	<li style="font-weight: 400;" aria-level="1">Now the spot Bitcoin ETFs have their shares tracking the value of Bitcoin as well as possible, while they rebalance holdings from time to time based on market dynamics through buying more bitcoins, or selling some of the existing holding.</li>
</ul>
Aside from these simplified steps of the working of spot crypto ETFs, you may want to remember some additional factors. For instance, the part of creating new ETF shares and redemption is carried out by the financial institutions issuing them, called APs or authorized participants. BlackRock is behind one of the 11 spot Bitcoin ETFs to launch in the US recently, and they play a similar role for the BlackRock iShares Bitcoin ETF (IBIT).

Now, in case the ETF shares are trading at a premium or a discount to the actual Bitcoin price at a given moment, the APs arbitrage the difference by creating/redeeming their respective ETF shares in big blocks. The end goal is to make the Bitcoin market price and ETF share price align. 
<h3>How Can I Buy Bitcoin Spot ETFs?</h3>
When you buy a spot Bitcoin ETF, it’s akin to buying shares for a conventional security. You might find the market to be comparatively more liquid than spot crypto markets, in fact, as Bitcoin spot ETFs lower the entry barrier into crypto for the regular man and are a more reliable instrument to them due to their long existence in traditional finance. 

What this implies is that you would be able to buy or sell your crypto ETFs shares with ease, much in the same way a traditional investor does. 
<h2>The SEC Brings BTC Closer to Mainstream Recognition</h2>
Now, why is the SEC’s decision something that could have a positive impact on Bitcoin and crypto in the long run? As mentioned above, the US is the heart of finance, and the relevant regulatory body in the country allowing investors to trade in crypto in real time through ETFs is symbolic of their growing acceptance of the asset class. This would encourage other countries which are yet to recognize the potential of crypto to take the plunge. For instance, Hong Kong has received its first spot Bitcoin ETF application in the wake of the SEC’s decision. While Hong Kong was already pro-crypto, the domino effect is still a highly possible outcome. 

On the other hand, the traditional investor wants to buy into an instrument they can trust while being in their comfort zone. An ETF is right up their alley, and when a regulator approves ETFs tracking a crypto’s price in real-time, they can finally engage with crypto without having to understand the technicalities of digital currency. In the long term, this would lead the common man into crypto itself as well, once they get the hang of the asset class.

Both scenarios combine to spell out a world where Bitcoin (and crypto in turn) is a mainstream asset like gold.
<h2>The Future is Bright with Spot Crypto ETFs</h2>
In brief, here’s what the future holds with spot Bitcoin ETFs active in the US: increased liquidity and a diverse array of investors in Bitcoin will initiate a sustained rally. BlackRock’s IBIT has crossed $2 million in AUM in just over 10 days, and the other 10 are keeping up, from reputed firms like Grayscale, Fidelity, and more. The launch of the 11 will be remembered in the history of finance for the grand response.

What are Spot Bitcoin ETFs, and How do they Work?

Bullish View on BTCUSDT

Welcome to Daily Trade Setups.

Trade:
<ul>
 	<li>Buy 43800 Call option of 7 February expiry @ $80</li>
 	<li>Sell (2x) 44400 Call option of 7 February expiry @ $30 each</li>
</ul>
Stop Loss: Spot level = $41700

Target: Spot level of $44400

Payoff chart at Expiry:
<ul>
 	<li>Max Profit: $580/BTC</li>
</ul>
<img class="aligncenter wp-image-34466 size-large" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/02/WhatsApp-Image-2024-02-06-at-10.03.56-AM-1024x462.jpeg" alt="" width="525" height="237" />

Rationale:

The most recent movement in BTC suggests a potential temporary halt in the upward momentum, with noticeable retracements in play. Moreover, a recently established supply zone/resistance has been pinpointed on the charts.

For risk management, we recommend setting a stop loss at 41700 to invalidate the aforementioned setup.

 

<img class="aligncenter wp-image-34467 size-large" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/02/WhatsApp-Image-2024-02-06-at-10.03.17-AM-1024x467.jpeg" alt="" width="525" height="239" />

Disclaimer: This report must not be used as a singular basis of any trading decision. Please refer to <a href="https://www.delta.exchange/research-disclaimer">https://www.delta.exchange/research-disclaimer</a> for analyst disclaimer and other disclosures.

Trade Setup 6 Feb 2024

Sideways View on BTCUSDT

Welcome to Daily Trade Setups.

Trade:
<ul>
 	<li>Sell  41000 PUT option of 7 February expiry @ $60</li>
</ul>
Stop Loss: Premium = $120

Target: Premium = $0

Payoff chart at Expiry:
<ul>
 	<li>Max Profit: $60/BTC</li>
</ul>
<img class="aligncenter wp-image-34454 size-large" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/02/WhatsApp-Image-2024-02-05-at-10.18.01-AM-1024x630.jpeg" alt="" width="525" height="323" />

Rationale:

The most recent movement in BTC suggests a potential temporary halt in the momentum, with noticeable retracements in play. Moreover, a recently established support has been pinpointed on the charts.

Adding to our odds, high OI is also observed for 41k puts of 7 Feb expiry.

<img class="aligncenter wp-image-34456 size-large" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/02/WhatsApp-Image-2024-02-05-at-10.19.32-AM-1024x485.jpeg" alt="" width="525" height="249" />

Disclaimer: This report must not be used as a singular basis of any trading decision. Please refer to <a href="https://www.delta.exchange/research-disclaimer">https://www.delta.exchange/research-disclaimer</a> for analyst disclaimer and other disclosures.

Trade Setup 5 Feb 2024

<h2>What if you sold an ETH straddle daily for six months (June 2023 to Jan 2024)?</h2>
<ul>
 	<li style="font-weight: 400;" aria-level="1">How would your capital have grown?</li>
 	<li style="font-weight: 400;" aria-level="1">What levels of risk would you have been exposed to?</li>
</ul>
<h2>Description of Trading Strategy</h2>
<ul>
 	<li>Underlying Asset: ETHEREUM (ETH)</li>
 	<li>Strategy Type: Daily ATM Straddle Selling (A straddle simultaneously sells a call and a put option of the same underlying asset, expiration date, and strike price)</li>
 	<li>Trade Execution: Trades are executed at market price and held till expiration.</li>
 	<li>ATM Strike is calculated as the closest to the money strike from the available option contracts at the time of execution.</li>
 	<li>Position Sizing: All graphs and statistics are produced considering a trade size of 1 ETH.</li>
 	<li>Fees: The strategy considers the total fees paid and calculates the Net Profitability accordingly.</li>
 	<li>Duration of Analysis: June 2023 to Jan 2024</li>
</ul>
<h2>Time-of-Day Analysis</h2>
Analysing trades initiated at various hours before expiry, we identified patterns that suggest optimal and suboptimal times for selling ETH straddles. The following graph shows the average daily PnL generated by selling straddles at different hours.

 

<img class="alignleft wp-image-34427 size-full" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/02/eth_straddle_hourly_avg_pnl.png" alt="Average PnL by Hours to Expiry" width="4770" height="2672" />

Notably, selling straddles 21 hours prior to expiry, i.e. 20:30 IST, is the most profitable time to sell ETH Straddles. Let's dive deeper. 
<h2>Equity Curve for 21 Hours to Expiry Straddles</h2>
<img class="alignnone wp-image-34426 size-full" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/02/eth_straddle_equity_curve-e1706878845796.png" alt="equity_curve" width="3569" height="1677" />
<ul>
 	<li style="font-weight: 400;" aria-level="1">Total PnL: The strategy achieved a total profit of $1,493.87.</li>
 	<li style="font-weight: 400;" aria-level="1">Net PnL: The net profit is approximately $967.89 after accounting for fees.</li>
 	<li style="font-weight: 400;" aria-level="1">Win Rate: The win rate, or the percentage of profitable trades, is 70.21%.</li>
 	<li style="font-weight: 400;" aria-level="1">Average Win: On average, a winning trade yielded approximately $16.99.</li>
 	<li style="font-weight: 400;" aria-level="1">Average Loss: Conversely, the average losing trade resulted in a loss of approximately $26.22.</li>
 	<li style="font-weight: 400;" aria-level="1">Max Drawdown: The largest drawdown experienced during the backtest was approximately $182.26.</li>
 	<li style="font-weight: 400;" aria-level="1">Profit Factor: The profit factor is the ratio of total profits from winning trades to total losses from losing trades, which is approximately 1.53. This suggests that the total profits from winning trades are about 1.53 times the losses from losing trades.</li>
</ul>
<a href="https://tradetron.tech/strategy/4634567"><img class="alignnone size-full wp-image-34438" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/02/Frame-42938.png" alt="" width="378" height="60" /></a>

<a href="https://www.delta.exchange/blog/how-to-trade-automated-strategies-on-delta-exchange-via-tradetron?category=all"><img class="alignnone size-full wp-image-34439" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/02/Frame-42939.png" alt="" width="465" height="60" /></a>
<h2>Drawdown Curve</h2>
<h2><img class="alignnone wp-image-34425 size-full" style="font-size: 16px;" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/02/eth_straddle_drawdown_curve-e1706879081640.png" alt="drawdown curve" width="3566" height="1670" /></h2>
The strategy experienced a maximum drawdown of approximately $182.26, which represents the most significant decline from a peak
<h2>Average Profit by Weekday for ETH Straddle Selling</h2>
<img class="alignnone wp-image-34428 size-full" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/02/eth_straddle_profit_by_weekday-e1706879172564.png" alt="Weekdaywise Average Profits bar graph" width="3570" height="2252" />

This graph displays the strategy's performance across different weekdays, offering insights into which days might offer better trading opportunities based on historical data. Sundays are the outlier days when straddles are underpriced compared to ETH's volatility. The best day of the week to sell straddles is Friday!
<h2>Disclaimer</h2>
This report is for informational purposes only and does not constitute financial, investment, or trading advice. The backtest results are based on historical data and do not guarantee future performance. Trading in options involves a high level of risk, including the total loss of investment. You should consult with a qualified professional for investment advice suited to your personal circumstances. The authors or distributors of this report bear no responsibility for any actions based on the information provided herein.

Selling ETH Straddles: A 500% Return in Just 6 Months

Sideways View on BTCUSDT

Welcome to Daily Trade Setups.

Trade:
<ul>
 	<li>Sell  44400 Call option of 4 February expiry @ $85</li>
</ul>
Stop Loss: Premium = $170

Target: Premium = $0

Payoff chart at Expiry:
<ul>
 	<li>Max Profit: $85/BTC</li>
</ul>
<img class="aligncenter wp-image-34416 size-large" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/02/WhatsApp-Image-2024-02-02-at-9.24.11-AM-1024x462.jpeg" alt="" width="525" height="237" />

 

Rationale:

The most recent movement in BTC suggests a potential temporary halt in the upward momentum, with noticeable retracements in play. Moreover, a recently established supply zone/resistance has been pinpointed on the charts.

<img class="aligncenter wp-image-34418 size-large" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/02/WhatsApp-Image-2024-02-02-at-9.24.51-AM-1024x467.jpeg" alt="" width="525" height="239" />

 

Disclaimer: This report must not be used as a singular basis of any trading decision. Please refer to <a href="https://www.delta.exchange/research-disclaimer">https://www.delta.exchange/research-disclaimer</a> for analyst disclaimer and other disclosures.

Trade Setup 2 Feb 2024

Bullish View on BTCUSDT

Welcome to Daily Trade Setups.

Trade:
<ul>
 	<li>Buy 44000 Call option of 2 February expiry @ $270</li>
 	<li>Sell (2x) 45000 Call option of 2 February expiry @ $130 each</li>
</ul>
Stop Loss: Spot level = $41300

Target: Spot level of $45000

Payoff chart at Expiry:
<ul>
 	<li>Max Profit: $990/BTC</li>
</ul>
<img class="aligncenter wp-image-34404 size-large" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/01/WhatsApp-Image-2024-01-31-at-10.16.29-AM-1024x462.jpeg" alt="" width="525" height="237" />

Rationale:

The most recent movement in BTC suggests a potential temporary halt in the upward momentum, with noticeable retracements in play. Moreover, a recently established supply zone/resistance has been pinpointed on the charts.

For risk management, we recommend setting a stop loss at 41300 to invalidate the aforementioned setup.

<img class="aligncenter wp-image-34405 size-large" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/01/WhatsApp-Image-2024-01-31-at-10.17.26-AM-1024x467.jpeg" alt="" width="525" height="239" />

Disclaimer: This report must not be used as a singular basis of any trading decision. Please refer to <a href="https://www.delta.exchange/research-disclaimer">https://www.delta.exchange/research-disclaimer</a> for analyst disclaimer and other disclosures.

Trade Setup 31 Jan 2024

Here’s a quick guide to get you started with Tradetron:
<ol>
 	<li>Login to Delta Exchange: Start by accessing your Delta Exchange account.</li>
 	<li>API Key Setup: Head to your profile, find the API keys section.<img class="aligncenter wp-image-34386 size-full" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/01/1.png" alt="" width="624" height="295" /></li>
 	<li>If 2fa is not enabled on your account, enable it before moving to the next step.</li>
 	<li>Create a new key: Enter a name you prefer and  whitelist the IP 103.216.94.212. Ensure you enable trading and data read permissions.
<img class="aligncenter size-full wp-image-34387" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/01/2.png" alt="" width="624" height="383" /></li>
 	<li>API Key Generation: Hit "Create API key" and enter the OTP you receive to finalize.</li>
 	<li>API and Secret Key: Once created, copy both the API and secret key. Keep them secure.
<img class="aligncenter size-full wp-image-34388" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/01/3.png" alt="" width="624" height="279" /></li>
 	<li>Tradetron Configuration: In your Tradetron account, go to "Broker and Exchanges".
<img class="aligncenter size-full wp-image-34389" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/01/4.png" alt="" width="624" height="281" /></li>
 	<li>Choose "Add broker". Select Delta Exchange here.
<img class="aligncenter size-full wp-image-34390" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/01/5.png" alt="" width="624" height="204" /></li>
 	<li>Enter Keys: Input the API and secret keys you saved from Delta Exchange and click "Save".
<img class="aligncenter size-full wp-image-34391" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/01/6.png" alt="" width="624" height="388" /></li>
</ol>
 

Voila! You're all set to start algorithmic trading on Delta Exchange through Tradetron.

Opportunities on Tradetron Marketplace: (<a href="https://tradetron.tech/strategies">https://tradetron.tech/strategies</a>)
<ol>
 	<li>Subscribe: You can subscribe and deploy pre-built strategies on Tradetron marketplace. We backtested selling calls and puts of the closest strike to BTC, you can read the report on this link: <a href="https://www.delta.exchange/blog/the-algo-trading-strategy-which-made-2860-returns-in-the-past-2-years">https://www.delta.exchange/blog/the-algo-trading-strategy-which-made-2860-returns-in-the-past-2-years</a>. If you would like to deploy this strategy on your Delta Exchange account, here is the link to the strategy on Tradetron: <a href="https://tradetron.tech/strategy/4290402">https://tradetron.tech/strategy/4290402</a></li>
 	<li>Create: You can create your own strategies, if you have a winning strategy, you can profit by sharing it with others. You can set your own price and monetize your ideas through Tradetron. If you want to learn more about creating strategies on Tradetron: <a href="https://learn.tradetron.tech/courses/">https://learn.tradetron.tech/courses/</a></li>
</ol>

How to trade automated Strategies on Delta Exchange via Tradetron

The introduction of the Ordinals protocol has enabled the creation of NFT-like (non-fungible token) assets on the Bitcoin network. Unlike conventional <a href="https://www.delta.exchange/blog/beginners-guide-non-fungible-token">NFTs</a>, which involve creating a new token, Bitcoin Ordinals involve direct inscription of raw file data onto the blockchain. This approach is a notable innovation, adding new dimensions to digital asset management within the Bitcoin ecosystem. The BRC-20 ( Bitcoin Request for Comment 20) tokens gained immense popularity quickly after their introduction in March 2023. This surge in popularity led to a significant increase in Bitcoin's network transactions, causing a record high in unconfirmed transactions in May 2023 and a temporary halt of the Bitcoin blockchain. This event highlighted the substantial impact of BRC-20 tokens on Bitcoin's network performance. 

Understanding Bitcoin Ordinals NFT- as they are referred to colloquially- and BRC-20 tokens is crucial for those interested in digital currencies and blockchain technology. Let’s begin with the basics: 
<h2>What Are Bitcoin Ordinals NFT and How Do They Work?</h2>
Bitcoin Ordinals, introduced by developer Casey Rodarmor, allow users to inscribe data such as text, images, or videos directly on the Bitcoin blockchain. This is achieved through inscribing data onto satoshis, the smallest unit of Bitcoin- with each inscription generating an Ordinal (also known as a Bitcoin NFT). The technology was made possible by Bitcoin's 2017 SegWit and 2021 Taproot upgrades. 

Ordinal NFTs have sparked debate in the Bitcoin community regarding the use of the blockchain for non-financial purposes. 
<h2>What Is The BRC-20 Token Standard ?</h2>
The BRC-20 token standard on the Bitcoin network is a new protocol for creating and transferring fungible tokens, akin to Ethereum's ERC-20 (Ethereum Request for Common 20). This standard utilizes Bitcoin's Ordinal inscriptions to embed token data directly on the blockchain. However, unlike ERC-20 tokens, BRC-20 tokens do not rely on smart contracts, leading to a simpler but less feature-rich functionality. 

As an experimental protocol, BRC-20's long-term viability and effectiveness are still under evaluation, marking an evolving phase in the digital asset industry on the Bitcoin platform.
<h2>How Do BRC-20 Tokens Work?</h2>
BRC-20 tokens operate uniquely within the Bitcoin ecosystem, and their functionality is distinctive from other token standards like Ethereum's ERC-20. Here's an in-depth explanation of how BRC-20 tokens work:
<ul>
 	<li style="font-weight: 400;" aria-level="1">BRC-20 tokens utilize the Bitcoin Ordinals protocol, which was made possible by Bitcoin's Taproot upgrade in November 2021. This protocol allows for the inscription of additional data, such as text, images, or audio, onto individual satoshis. These inscriptions give each Satoshi a unique ordinal number based on the order in which they are mined.</li>
 	<li style="font-weight: 400;" aria-level="1">To create BRC-20 tokens, JSON (JavaScript Object Notation) data is inscribed onto satoshis. This JSON code defines the token's attributes, including its name, symbol, supply, minting conditions, and transfer conditions. The process of deploying a BRC-20 token involves defining these parameters and creating a JSON file that details the token's attributes.</li>
 	<li style="font-weight: 400;" aria-level="1">After deployment, the minting of new tokens is managed according to predefined criteria, with the initial recipient being determined by the service used for the inscription. Transfers of BRC-20 tokens between users involve altering the JSON data in the inscriptions, effectively tracing the token's journey across Bitcoin addresses.</li>
 	<li style="font-weight: 400;" aria-level="1">Unlike ERC-20 tokens, which use smart contracts for storage and transactions, BRC-20 tokens store their information within the Bitcoin blockchain through script files. This design choice, while limiting the tokens to basic functionalities, potentially reduces vulnerabilities and contributes to their security.</li>
 	<li style="font-weight: 400;" aria-level="1">BRC-20 tokens can be acquired through centralized exchanges like Gate.io or decentralized platforms. However, they are not as easily traded on exchanges as ERC-20 tokens, and their availability remains limited.</li>
</ul>
BRC-20 tokens have seen significant market adoption and thousands of tokens have already been minted. They are being used for peer-to-peer transfers, potentially in decentralized finance (DeFi), and for tokenizing real assets like gold and real estate. BRC-20 tokens have also been utilized to create meme tokens and other digital assets.

Despite their innovative nature, BRC-20 tokens face limitations inherent to the Bitcoin blockchain, such as scalability challenges and limited functionality compared to ERC-20 tokens. Their current capabilities are primarily focused on the minting, deploying, and transferring of tokens, without the advanced features found in smart contract-based tokens.
<h2>Are Bitcoin Ordinal NFTs Worth Investing In?</h2>
 

 

Investing in Bitcoin Ordinals is a decision that depends on your risk tolerance and investment strategy. Here are some insights: 
<ul>
 	<li style="font-weight: 400;" aria-level="1">BRC-20 tokens, closely related to Bitcoin ordinals, have been gaining substantial momentum in the market. Increase in value suggests that there is growing investor interest and market potential in these types of tokens​​.</li>
 	<li style="font-weight: 400;" aria-level="1">Bitcoin Ordinal cryptos are expected to enable new and innovative use cases and markets for NFTs. They could offer solutions for things like decentralized identity, web2 analogs, and physical infrastructure networks. This potential for diverse applications could make Bitcoin Ordinals an attractive area for investment, especially if you're interested in emerging technologies and the expansion of the Bitcoin ecosystem​​.</li>
 	<li style="font-weight: 400;" aria-level="1">If you're looking for a long-term investment strategy that can weather the volatility of the crypto market, Bitcoin ordinals, alongside Bitcoin and BRC-20 tokens, might be worth considering. Each of these assets has unique characteristics and advantages, making them suitable for different investment goals. Bitcoin, for instance, is recognized as a reliable store of value, while BRC-20 tokens offer innovation and experimentation opportunities in the crypto space​. </li>
</ul>
<h2>The Future of Ordinal NFTs and BRC-20 Tokens</h2>
The introduction of Ordinal NFTs and the BRC-20 standard has not only broadened the scope of Bitcoin's functionality but also sparked new conversations about the blockchain's potential uses. As we look to the future, the trajectory of Bitcoin Ordinals and BRC-20 tokens appears promising, highlighting the dynamic and evolving nature of blockchain technology. Their ongoing development and integration within the digital asset ecosystem will undoubtedly be a key area of interest for investors, developers, and enthusiasts in the blockchain community.

What Are Bitcoin Ordinals and The BRC-20 Token Standard?

Sideways View on BTCUSDT

Welcome to Daily Trade Setups.

Trade:
<ul>
 	<li>Sell Call Spread -  BTC  - 44400 - 44800- 31  January expiry at $55</li>
</ul>
Stop Loss: Spread Premium = $110

Target: Spread Premium = $0

Payoff:

Max Profit: $55BTC

Max Loss : $55/BTC

<img class="aligncenter wp-image-34379 size-large" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/01/WhatsApp-Image-2024-01-30-at-10.14.00-AM-1024x462.jpeg" alt="" width="525" height="237" />

Rationale:

BTC has exhibited a pattern of achieving higher highs and higher lows in its daily price movements. Notably, it broke through key pivot levels at 45800 during the recent trading session, signifying a promising upward trajectory.

Examining the 4-hour chart, it’s evident that the price is consistently adhering to established support / demand zones and has retraced back to its base area of 41800$. This steadfast adherence underscores the robust buyer sentiment in the market.

 

<img class="aligncenter wp-image-34380 size-large" src="https://prod-wp.delta.exchange/wp-content/uploads/2024/01/WhatsApp-Image-2024-01-30-at-10.14.45-AM-1024x467.jpeg" alt="" width="525" height="239" />

Disclaimer: This report must not be used as a singular basis of any trading decision. Please refer to <a href="https://www.delta.exchange/research-disclaimer">https://www.delta.exchange/research-disclaimer</a> for analyst disclaimer and other disclosures.

Trade Setup 30 Jan 24

Polkadot is a scalable, multi-chain protocol that connects multiple blockchains. This way, Polkadot allows for information and assets to be moved across blockchains that were previously incompatible (such as Bitcoin and Ethereum) in a trustless way.  

<span

What is Polkadot?

<h2>What is Enjin Coin?</h2>
<a href="https://enjin.io/"><span class="s2" style="font-variant-numeric: normal; font-variant-east-a

What is Enjin and how does it work?

Axie Infinity Shard, i.e., AXS, is a token built on Ethereum Blockchain with a massive supply of 270,000,000 coins. Axie Infinity token supports all the transactions on the Axie Infinity platform. Being a gaming token, the token can also be used in the marketplace too

What Is Axie Infinity (AXS)?

Scalability remains an issue on Ethereum, but the advent of protocols like Polygon has integrated scalable solutions on the Ethereum ecosystem. Polygon was launched in India in October 2017 by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun. Polygon has a team of expe

What is Polygon (MATIC)?

<h2 class="p1">What is Cosmos?</h2>
Cosmos is a technology that seeks to enhance how different blockchains operates. By creating an open-source network, Cosmos seeks to ensure that different networks are able to communicate, share data,

Understanding Cosmos – The Internet of Blockchains

DeFi liquidity pools are one of the central technologies among the DeFi technology stack currently powering almost all of the <a href="https://coinmarketcap.com/view/defi/">top projects within the decentralized finance universe</

What Are Liquidity Pools in DeFi and How Do They Work?

Yield farming has been one of the popular concepts in the DeFi (Decentralised Finance), allowing users to generate more income on their existing crypto assets using different strategies. This may include lending, arbitraging, providing liquidity, and margin trading, a

Yield farming Through Options

Amidst the rising excitement around cryptocurrencies, it appears that they are finally headed towards mainstream acceptance and this could open up new perspectives in the crypto space. As the year comes to an end, let us have a look at some of the key themes for 2021.

Cryptocurrencies: Key Themes For 2021

<h2>What is Leveraging, and How Does It Work?</h2>
Leveraging is a tool that allows a trader to use borrowed funds to open and manage positions greater than their capital. Trading DeFi coins with leverage, when done right, can help you take up larger

How to Trade DeFi Coins With Leverage?

If you’ve been in the know about cryptocurrencies for a while now, you must have heard of <a href="http://prod-wp.delta.exchange/blog/introduction-decentralized-finance-defi-advantages">DeFi</a><span style="font-weight: 40

Outlook for DeFi in 2021

<h2>Overview of Delta's AMM Pools</h2>
 

Our overarching goal behind launching AMM Pools is to democratize market making. In TradFi, market making has been the dominion of a handful of specialized firms. These firms develop proprietary trading strategies and typically use their own capital to ma

How Delta’s AMM Pools Work – Democratizing Market Making

While blockchain technology has certainly democratized finance, it still operates in two forms - centralized finance (CeFi) and decentralized finance (DeFi). Both are equally important players in the cryptocurrency industry and make good use of the distributed ledger

CeFi exchanges vs. DeFi exchanges

The term DeFi, or Decentralized Finance, refers to an ecosystem of financial applications built upon blockchain networks. The DeFi movement aims to create permissionless, open-source payment protocols not unlike the already existing fiat payment networks. Exc

The Different Use Cases Of DeFi

Within the DeFi world, liquidity mining is the process through which a cryptocurrency exchange platform can reward the pool of users who provide the platform with liquidity. Essentially, it’s a market making strategy that allows anyone from any corner of the world to

What is Compound’s Liquidity Mining ($COMP)?

DeFi, or decentralized finance, continues to enable entirely new and convenient financial models for the masses. One we’re choosing to focus on in this post - is the concept of flash loans. Flash loans allow you to take credit worth millions of dollars, without any co

Understanding Flash Loans

Yield farming is the latest buzzword around the DeFi (decentralized finance) world. The basic concept of yield farming involves generating more returns with your existing crypto: yield farmers lend out their crypto assets and earn more crypto as reward. Since DeFi is

Yield Farming Strategies

<h2>What is Bancor v2?</h2>
Bancor is a liquidity protocol that sanctions automated and decentralized exchanges over Ethereum and across blockchains. Users can deploy and customize AMM (Automated Market-Maker) liquidity pools, trade tokens, and provide liquidity to the reserve pool

How Does Bancor v2 Work?

<h2>What is $YFI?</h2>
In the simplest of definitions, $YFI is the governance token for Yearn.Finance, a DeFi yield farming network running on the Ethereum blockchain. DeFi, for those unaware, is decentralize

DeFi’s Bitcoin: $YFI Explained

<h2>What is Curve.fi?</h2>
Curve.fi, or Curve Finance, is essentially a DEX (decentralized exchange) platform for stablecoin swaps (like USDC to USDT) at low transaction fees. It’s quite similar to Uniswap in the sense that it uses liquidity pools. A

How Curve.fi Works

Many in the crypto space are talking about Ampleforth (AMPL) and how this next big token is going to take off. What is Ampleforth though? What is the hype all about? How is it not just another cryptocurrency with short-lived hyped? Let’s find out. <span style="

Understanding Ampleforth (AMPL)

Dear Delta Exchange Traders,

We wanted to let you know about the upcoming change in trading fees.

We are revising our trading fees. The new trading fees are listed below and will be ef

We are excited to introduce a new offer where you can win up to $1000.

Users eligible for this offer will get to see a personalized banner with the Target Fee to be paid in Offer duration and the reward value on the Delta Exchange trading platforms after logging-in.

Cashback Offer

We are excited to introduce a new offer where you can win up to $200.

Users eligible for this offer will get to see a personalized banner with the Target Fee to be paid in Offer duration and the reward value on the Delta Exchange trading platforms after logging-in.<

June Bonanza

<h2>What is Anti Phishing Code?
</h2>
Delta Exchange's Email Anti-Phishing Code is a unique alphanumeric code included in every email sent by Delta Exchange. By cross-referencing the code in the email with the code in the Anti Phishing section of the security page in Delta Exchang

Delta adds Anti-Phishing Code to emails for enhanced security

<h2 id="h-how-to-disable-google-authenticator-sync-feature" class="wp-block-heading">What has changed?</h2>
Until now, the Google Authenticator app used to store OTPs only on the primary device. This meant that if a user lost access to their device, they wouldn’t be a

Disable Google Authenticator cloud sync feature for better security

We are excited to introduce a new offer where you can get 40% cashback on fee paid from 12 May 12 am UTC - 31 May 11:59pm UTC.

This offer is valid for two sets of traders:
<ul>
 	<li>Traders whose average fees paid in the last 20 days is at least $50 in cash, get 40% cashback when they pay 2x <

May Cashathon

We are excited to introduce a new offer where you can get 50% cashback on fee paid from 21 April 12 am UTC - 30 April 11:59pm UTC.

This offer is valid for traders who have paid at least $10 fee in cash till 31 March 2023.

Terms & Conditions:
<ol>
 	<li aria-level="1">Offer starts on 2

April Rush: Trade & Win $250

A regular to the Delta blogs? You must already have a solid understanding of some basic concepts when it comes to options trading. However, if you’re still wondering how to take your crypto options trading game to the next level, this detailed article is the perfect n

Advanced Crypto Options Trading Strategies for Seasoned Investors

We are excited to introduce a new offer where you can get 50% cash back on fee paid on scalping trades on Futures. This offer is only valid till 4th May 2023 11:59pm UTC/ 5th May 2023 5:29am IST.

 

What is Scalping?

Scalping involves buying and selling

Futures Scalper Carnival

Update: The offer has expired. Eligible users have been contacted and rewards credited to their trading account.

 

We've rolled-out a special offer for our Futures traders; get 50% Fee Cashback* up to $500!

<span style="font-weight: 40

7 Day Futures Challenge

We are excited to introduce a new offer where you can get 100% cash back on fee paid on scalping trades on Options. This offer is only valid till 21st April 2023 4:30am UTC/ 10am.

 

What is Scalping?

Scalping invo

Options Scalper Carnival

Every trader has their preferred tools to perform <a href="https://www.delta.exchange/blog/guide-technical-analysis-crypto-trading">technical analysis</a>, but it’s important to still acquir

What is Aroon Indicator & How is it Used?

In light of the recent events in the industry we would like to reiterate that all customer funds on Delta Exchange are safe and available for withdrawal at any time.

 

We keep funds with best in class custodians and we have dollar for dollar, bitcoin for bitcoin, ether for ether i.e. 1:1 cover

Transparency Message from Delta Exchange

A fantastic chance to win up to a $2500 Bonus in Trading Credits on Depositing money in your Delta wallet. The depositor fortune offer provides you the opportunity to utilize your deposits and get a percentage of this in Trading credits.

Offer Details:
<ul>
 	<li>Users will get

Depositor Fortune : Win $2500 Bonus

<div></div>
<div>Options Weekly is a brief overview of the Crypto Options market. This is not financial advice.</div>
<div></div>
<div></div>

<hr />

 

 

Date: 8th July 2021

 

Bitcoin Options</spa

Options Weekly – Trading Bitcoin and Ethereum Options – July 2021

Volatility is a real issue (or advantage perhaps? Depending on how you see it) in the crypto markets. Regardless, proper risk management is a must if you want to survive. The risk reversal options strategy in crypto is a pretty flexible one in this regard, and it can

Smart contracts in the Bitcoin network. Sounds interesting? That's precisely why Bitcoin BitVM has been attracting a lot of notice from the community in recent months. The concept of Bitcoin Virtual Machine (BitVM) emerged from a <span style="font-weight: 400;"

Crypto is over 15 years old now, almost legal for it to drive a car in the US. What this means is that traders have had quite some time to try out different kinds of crypto trading strategies- most are twisted tales made up from traditional market investment strategie

Over 420 million people own crypto in the world right now, and crypto is, without a doubt, the talk of the hour for investors. The best part of the asset class is that while you can do some

Spot Bitcoin ETFs (exchange-traded funds) are all the rage now, with the US SEC (Securities and Exchanges Commission) greenlighting 11 Bitcoin spot ETFs at once after resisting crypto ETFs f

Here’s a quick guide to get you started with Tradetron:
<ol>
 	<li>Login to Delta Exchange: Start by accessing your Delta Exchange account.</li>
 	<li>API Key Setup: Head to your profile, find the API keys section.<img class="aligncenter wp-image-34386 size-full" src="https://prod-wp.delta.exchan

The introduction of the Ordinals protocol has enabled the creation of NFT-like (non-fungible token) assets on the Bitcoin network. Unlike conventional <a href="https://www.delta.exchange/blog/beginners-guide-non-fungible-token">N

The fun part about crypto options is that you do not always need to be firmly on the bullish or bearish side, you can simply take advantage of the volatility the crypto market offers

Crypto Option Strangle: How Does the Options Strangle Strategy Work?

As a crypto trader, you’d know that crypto options provide investors with the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified period. These instruments play a crucial role in the crypto market, allowing pla

Options Expiry Dates: Understanding the Impact on Options Trading

The world of crypto options trading is complex and dynamic. It involves a myriad of strategies and tools explored constantly by traders. Among these tools and strategies, the crypto options chain<span style="font-we

Crypto Options Chain Analysis

Passive income in crypto is a great way for beginners and experienced traders alike to earn while balancing other commitments. It provides beginners the opportunity to learn about investments as they earn, and allows seasoned financial growth without the need for cons

Earn Passive Income With Crypto

In the fast-paced world of crypto derivatives, there's a strategy that stands out for its precision and potential: gamma scalping in crypto options. It's not your typical trading technique; it's a systematic approach that lets you harness the crypto market's volatilit

Gamma Scalping in Crypto Options

The world of cryptocurrencies has its ups and downs. Similarly, a trader will have bearish or bullish sentiments depending on whether he/she expects the asset’s price to go up or down. To capitalise on market opportunities, a crypto trader must be adaptable and pick a

Bullish Crypto Options Strategies: Types and Working Process

Any trader worth their salt would engage in <a href="https://www.delta.exchange/blog/guide-technical-analysis-crypto-trading">technical analysis</a> of their financial markets and assets, re

Volatility Skew in Crypto Derivatives Trading

Trading in cryptocurrencies is both thrilling and challenging, especially for beginners. Many people are attracted to the volatile market because of its potential for high returns. A significant benefit of crypto options is that it offers multiple ways to earn profits

5 Crypto Options Trading Mistakes You Must Avoid

Delta Exchange has introduced 'Cross Margin’ mode. In this blog we will understand some key differences between Isolated and Cross margin mode and how Cross margin will benefit traders. 
<h2>Isolated Margin</h2>
<span st

Cross Margin

Great news! Following customer feedback, we have reduced the Options Liquidation Factor from 0.75 to 0.5 for all the underlyings. 

 

Liquidation Factor decides the fee a user pays in the event of liquidation.<

Liquidation Fee Reduced by 33%

We are stopping all deposits for Sol (via Solana blockchain and BSC) with immediate effect.

Should you deposit Sol on your Sol wallet address you may not see them credited to your account and you can lose your funds. Please don't send any more Solana deposits.

This decision is

Temporary Suspension of Sol Deposits

Santa brought you 0 Fee Trading till year end (2023). Get 100% Cashback on fee paid:

50% Cashback in USDT(withdrawable) + <a href="https://www.delta.exchange/blog/win-1000-reward?category=all">50% in Delta Cash under $1000 Off

Enjoy 0 Fee Trading till year end

Every week users who pay $10 or more USDT Fee are eligible for Reward as per table.

 

Reward Structure:

 
<table style="width: 64.3052%; border-color: #000000; border-style: solid;">
<tbody>
<tr>
<td style="width: 33.4171%; text-align: cente

Win $1000 Reward

We are excited to introduce a new offer where you can win up to $200 Deposit Bonus.

Users eligible for this offer will get to see a personalized banner on the Delta Exchange trading platforms after logging-in.

Hurry Up! <a href="https://www.delta.exchange

$200 Deposit Bonus with 100% utilization!

Delta Exchange is giving a 10X Trading Bonus - up to $1000. Just Pay $10 or more Options fee in 7 days to get 10X Options fee paid as Trading Bonus

Terms & Conditions:
<ul>
 	<li aria-level="1">Offer launch date is 12

$1000 Options Trading Bonus

Delta Exchange has launched a new offer where traders can earn up to $200 Delta cash based on fees paid by them in a 30-day period.

Offer Details:
<ul>
 	<li style="font-w

Claim Up to $200 Delta Cash

Delta Exchange brings you an amazing opportunity with its “Friday Blockbuster Offer” where you can earn Free Trading credits up to $500 based on your Trader Score.

Offer Details:
<ul>
 	<li style="font-weight: 400;" aria-level="1"><span style="font-

Friday Blockbuster – $500 Reward

Delta has brought a new offer for all options users which gives 50% cashback on the trading fee paid.

Terms & Conditions:
<ul>
 	<li style="font-weight: 400;" aria-level="1">Maximum cashback per user per day capped at

50% Cashback Offer On Options Fee

<blockquote>This offer has ended on 7-Apr-2022</blockquote>
Options can be an excellent investment vehicle to capitalize on short-term price movements making them a worthwhile strategy. Advanced o

$100 Cashback Offer on 1st Options Purchase

<ul>
 	<li aria-level="1">This offer is applicable to all the current and new traders who wish to refer users to our platform.</li>
 	<li aria-level="1">Earn $175 Delta cash per new Option Trader Referred</li>
 	<li aria-level="1">Delta cash can be used for paying trading fees.</li>
 	<li aria-l

Earn $50,000 – Refer Option Traders

We will be halting the trading of LUNA-USDT Perpetual Swap contract at 6pm UTC today.

 

Traders are advised to close their positions as soon as possible, before the delisting of the LUNA contract.

 

The positions will be closed at a pric

LUNA-USDT Perpetual Swap Contract to be halted.

A system malfunction around 5pm UTC, 9th May resulted in a few erroneous trades that happened far away from prevailing market prices. In order to resolve these erroneous trades, we had to halt trading and take markets offline. We expect to be able to complete the resolution of the erroneous trades b

Erroneous Trades Resolution: 9th May 2022

Ahead of the NEM's Symbol (XYM) <a href="https://nemplatform.com/symbol-migration/">airdrop program</a> to XEM holders; trading in <a href="http://prod-wp.delta.exchange/app/futures/trade/XEM/XEMBTC">XEM-BTC</a> and <a href="http://prod-wp.delta.exchange/app

All XEM contracts to be paused temporarily – Will resume at a later date

The NEM's Symbol (XYM) <a href="https://nemplatform.com/symbol-migration/">airdrop program</a> to XEM holders has been pushed back to February 2021 by the NEM team. This post is a follow-up related to our recent <a href="http://prod-wp.delta.exchange/blog/xem-contracts-to-be-paused-

Update – XYM airdrop pushed back – XEM contracts will resume later

XEM contracts to be paused temporarily – Will resume from 15th January

Unlike stock markets, crypto markets are open 24x7 and trading should happen in a continuous manner. Ideally, an exchange should never go down and trading should never stop. But, there are still times when markets need to be disrupted.

Single Price Auction is a well-known method used by prominent

Bootstrapping Liquidity using Auctions

We are excited to release our first market making bot to the general public. Market making has never been such a breeze. Just bring in your risk capital and start making markets on Delta.

Source code for market making bot is publicly available on our Github account <a href="https://github.com/del

Market Making on Delta

Bullish View on BTCUSDT

Welcome to Daily Trade Setups.

Trade:

Sideways View on BTCUSDT

Welcome to Daily Trade Setups.

Trade:</span

<h2>What if you sold an ETH straddle daily for six months (June 2023 to Jan 2024)?</h2>
<ul>
 	<li style="font-weight: 400;" aria-level="1">How would your capital have grown?</li>
 	<li style="font-weight: 400;" aria-le

Sideways View on BTCUSDT

Welcome to Daily Trade Setups.

Trade:</span

Bullish View on BTCUSDT

Welcome to Daily Trade Setups.

Trade:

Trade Setup 29 Jan 2024

Bearish View on BTCUSDT

Welcome to Daily Trade Setups.

Trade:

Trade Setup 25 Jan 2024

Trade Setup 24 Jan 2024

Trade Setup 23 Jan 2024

Trade Setup 22 Jan 2024

Trade Setup 19 Jan 2024

Sideways View on BTCUSDT

Welcome to Daily Trade Setups.

<span style="text

Trade Setup 18 Jan 2024

Trade Setup 17 Jan 2024

Bitcoin is up 29% in the last 10 days and is trading at $8216. Further, over this period, the uptrend has been quite strong and consistent. It is in this backdrop our 2nd trading competition was held.

All participants were given 1BTC as margin money to trade our <a href="http://prod-wp.delta.exch

Trading Competition #2: Go Long or Go Home

Our first trading competition ended this morning. The 3 days (22nd — 25th June) over which the competition ran turned out to be a fortuitous period that saw BTC price fall from $6683 to $5866 before recovering to $6146.

This high volatility presented many trading opportunities on both long and sh

The Results are in …

Derivatives are a zero-sum game.. but not on <a href="https://testnet.delta.exchange/app">Delta Testnet</a>. In our first Trading Competition, we are gonna have 3 winners and no losers!

<img class="aligncenter wp-image-7300 size-full" src="http://prod-wp.delta.exchange/wp-content/uploads/2018/12/

Let the Trading Games Begin!

Crypto options trading is gradually emerging as a popular alternative investment strategy for traders who wish to diversify their portfolios and make profits in a declining market. For beginners, a crypto option is a contract that provides the holder with the right to

How Crypto Options Traders Can Benefit from Market Volatility?

Crypto markets have always been known for their volatility and profit-yielding potential. But with high returns, comes high risks. While trading with crypto options, anticipating the future prices of underlying assets rightly is very important.  Here a proper utilisat

Understanding Implied Volatility in Crypto Options Trading

As an investor, you may have heard about buying call options to speculate on rising crypto prices. At Delta Exchange, we see a lot of interest around that trade. But have you ever considered the alternative approach: selling cal

Selling Call Options – How to Profit?

Options trading offers a diverse range of strategies to investors, including the intriguing realm of deep in the money (ITM) and deep out of the money (OTM) options. These options, with their unique characteristics and risk-reward profiles, provide opportunities for tr

Deep OTM/ITM Options: An Overview of What They Are and How They Work

Enter the captivating world of crypto trading, where the power of bull flags and bear flags awaits. These mesmerizing patterns within the crypto market offer traders a gateway to potentially gargantuan profits. 

Bull flags and b

Trading Bull Flags and Bear Flags: An Overview and Trading Strategies

The world of crypto is highly volatile and unpredictable, making it challenging for crypto traders and investors to manage risks and maximize returns. Each of two popular trading strategies for crypto investors - short selling and margin trading, come with own advanta

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