Make Money in Choppy Markets with Crypto Options
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| By Bruce Ng |
I’m not breaking news when I say Bitcoin (BTC, “A”) has seen choppy price action over the past few days.
But so far, there is no clear trend in sight. Just take a look at its price action below and you’ll see what I mean:
Dips as strong as $1,000 immediately get retraced. And any gains made on rallies get chipped away just as quickly.
So how do you make money in crypto when there’s no clear direction about where it’s headed next?
I have an “option” for you.
Meet GammaSwap
GammaSwap (GS, Not Yet Rated) is the first onchain perpetual options platform.
Users can bet on which direction crypto assets are heading or else set up a hedge. Which is similar to speculating with stock options.
GammaSwap recently launched a liquidity bootstrapping pool, or LBP. And this puts it ahead of any potential crypto option competitors.
According to GammaSwap docs, this tool promotes fair and transparent token launches.
Without getting too technical, the LBP uses a pricing mechanism that prevents bots and large buyers from hoarding too much early supply.
Basically, the LBP allows newly launched tokens to reach a fair market price naturally. So, retail investors can buy early at a fair value.
This is supported by liquidity from users. They deposit liquidity in the LBP, and in return they are given GS tokens.
At the time of writing, the LBP has raised 313.47 ETH, or roughly $790,000.
Based on the token price in the LBP raise shown above, the market cap and fully diluted valuation for the GS token are $1.28 million and $19.55 million, respectively.
And when it comes to Total Value Locked — a way to measure usage and a good indicator of adoption — GammaSwap ranks favorably.
It ranks No. 6 among perpetual platforms.
Not bad for a platform that just launched its token yesterday!
3 Ways to Make Money with GammaSwap
GammaSwap allows you to trade crypto options. There are generally three strategies users can choose from:
- Straddle: This allows you to basically bet on the market being volatile, regardless of which direction the asset’s underlying price goes in. It’s a highly suitable strategy in today’s market.
- Long: This allows you to bet that an asset will go up.
- Short: This allows you to bet that an asset will go down.
You can start to trade options on GammaSwap here.
As an example, the options screen looks like this:
On the right panel, you can select any of the three strategies.
Each will have a different profit/loss profile. For the Straddle, you can see that the profits increase when the price deviates from entry.
If you are interested on trading crypto options on GammaSwap, I encourage you to play around and inspect the platform first before putting any money in.
So far, GammaSwap supports transaction on three networks — Ethereum (ETH, “A-”), Base and Arbitrum (ARB, “B-”).
Of those, I have personally found Arbitrum to be the fastest and cheapest to run transactions on.
I should note, however, that as of the time of writing, U.S. users cannot access GammaSwap.
That’s due to the SECs consistent targeting of any DeFi platforms that offer anything more involved than simple trading or staking.
But U.S. investors may still purchase the GS coin on decentralized exchanges to gain exposure at some later time.
For now, it may be worth putting on your watchlist.
Best,
Dr. Bruce Ng
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