Betting on the Rise and Fall of Bitcoin

Part 2 - Trading Derivatives

This is the second part, of a two part letter on debt, leverage, and trading. If you haven’t already read the first part, I recommend doing so, as it lays the groundwork for how I conceptualize and speak about debt.

Derivatives trading allow you to bet on the rise (long) and fall (short) of the underlying asset. I only trade Bitcoin derivatives, as I bel…