ITT: We tell cryptoids why options are superior.
IF you want superior returns, you have to play derivatives. Options are the safest derivative to play since most strategies require no margin, meaning, you can't lose more than you bet.
Options have built-in leverage. Lets say you see something start to head moonward. It goes from $10 a share to $40.
If you bought stock at $10 and sold at $40, that's 400%. Amazing returns, but these opportunities are rare. What if you used call options instead?
Assuming you bought a $10 call at $10, you probably would have paid $250 for a contract. At $40 a share, your contract is now worth $3000, leaving you with a $3,750 profit. Divide that by your cost of entry to determine profit %. $3750 / $250 = 1500%. Ah, that's better. And we only had to risk $250, vs over $1000 of stock to obtain the same payoff.
Even better would be to wait for something to pump into bubble territory and ride it down. If it goes up too fast, it WILL come down too fast - and that is an opportunity as well. Why not win both ways? You can with options.
Lets say the market grinds sideways for a few months. Great, we can make money on that too. A butterfly spread can give us 3-10x leverage against our risk, yet with low probability of success - or perhaps we prefer a higher probability of success by using an Iron Condor, in exchange for lower profit potential?
So what the fuck are you doing trading shitcoins? Go learn options, and remember, don't get fucking greedy.
There are plenty of great tutorials on Investopedia, tastytrades, optionsalpha etc.
