How do I trade Bitcoin ?

[Wallace]

I am expecting a large move down and want to profit from that move
no Options, what is available, most efficient trading method (futures for eg with the ES)
and what is the cost to make that particular trade.

 

[maxinger]

I am expecting a large move down and want to profit from that move
no Options, what is available, most efficient trading method (futures for eg with the ES)
and what is the cost to make that particular trade.

Ask @expiated.

He is highly experienced with close to 50 journals.

 

[zghorner]

CME BTC futures offer 4x leverage. I know there are other places that offer much more but not sure how trustworthy they are.

 

[RedDuke]

I am expecting a large move down and want to profit from that move
no Options, what is available, most efficient trading method (futures for eg with the ES)
and what is the cost to make that particular trade.

I think you can short ETFs from tomorrow, and of course CME futures.

what is your reasoning?

 

[deaddog]

I am expecting a large move down and want to profit from that move

ProShares Short Bitcoin Strategy ETF (BITI)

 

[redneckrick]

ProShares Short Bitcoin Strategy ETF (BITI)

It's good to know that this doesn't actually do the opposite of BTC over longer than a day. Good explanation in their prospectus. Possible that BTC is lower a month after you bought it and you still lose money. Also the opposite.

 

[deaddog]

It's good to know that this doesn't actually do the opposite of BTC over longer than a day. Good explanation in their prospectus. Possible that BTC is lower a month after you bought it and you still lose money. Also the opposite.

It's pretty close.

The cost of trading is nothing if you have a zero commission broker.
The downside is you can't trade 24/7; only when the market is open.

 

[BKR88]

It's pretty close.

View attachment 332464

The cost of trading is nothing if you have a zero commission broker.
The downside is you can't trade 24/7; only when the market is open.

Your chart shows BITO, not BITI.
BITI isn't too far off though over a year when looking at "Total Return".
Looking at "Price" comparison the difference is wider.

 

[redneckrick]

It's pretty close.

View attachment 332464

So we're talking about BITI, the inverse fund, not BITO, which should track pretty close like you said. Given they call BITI a short fund you'd be forgiven for thinking it did the opposite of BTC, but it doesn't over time, just for 1 day. Here's an example, you buy BITI on 6/22/22 thinking BTC will go down by 16% by EOY so you'll be up 16% right? Wrong, you're actually down .13%! It can do the opposite too, sometimes BTC will go up 5% and BITI will also go up 1% over a space of a few weeks.

Its all just math, check out summary prospectus page 5 BITI | ProShares Short Bitcoin Strategy ETF | ProShares second column

 

[deaddog]

So we're talking about BITI, the inverse fund, not BITO, which should track pretty close like you said. Given they call BITI a short fund you'd be forgiven for thinking it did the opposite of BTC, but it doesn't over time, just for 1 day. Here's an example, you buy BITI on 6/22/22 thinking BTC will go down by 16% by EOY so you'll be up 16% right? Wrong, you're actually down .13%! It can do the opposite too, sometimes BTC will go up 5% and BITI will also go up 1% over a space of a few weeks.

You are correct BITI and you're right it is not a good long term hold.
The OP expects a sharp drop. Short term it is a reasonable way short BTC. You will have to hold longer than a day and expect gaps because of the time frame they trade in.
It's a simple way to trade BTC without having to open another account with a crypto exchange.