2023 Investment Update: Daily USD 50 into ETH with Leverage on Deribit

  • Started investing in cryptocurrencies a few years ago, buying 0.2 ETH with 50 EUR and experienced the thrill of seeing the investment more than double within months.
  • Currently adopting a leveraged futures trading strategy on the Deribit platform, investing 50 USD daily in ETH-Perpetual futures contracts using 50x leverage, allowing for a small daily investment of just 1 USD.
  • Plans to continue buying ETH futures for the next 35-40 days until holding at least 1 ETH worth of ETH-PERP futures, then considering selling a call option against the position. If successful, will increase the daily investment or scale up to 2 USD per day (100 USD with leverage).

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I remember the excitement I had a few years ago when I bought my first ETH coin investing 50 EUR and buying about 0.2 ETH. What a thrill, what an adrenaline. Back then I was investing about EUR 50/mo in ETH, BTC, and LTC.

My investment was worth about EUR 150/mo. In just a couple of months, I more than doubled my total investment and it seemed the way to go, slow and steady, buy and hold, dollar cost averaging.

Fast forward to 2023, I have decided to invest 50 USD daily in buying ETH. Nope, I don't have more money than I had back in 2017, sometimes it feels like I have even less, but here is the magic - leveraged futures trading on the Deribit trading platform. 

Instead of buying ETH itself, I will buy ETH-Perpetual futures contracts every day by investing 50 USD. Using leverage 50x it will ask me to invest just 1USD/daily. Isn't that awesome?

For the starter, I'm planning to buy ETH for the next 35-40 days, until I will hold ETH-PERP future worth of at least 1 ETH. it will ask me for just a small investment of about 35-40 USD. Depending on the market condition then, I will sell a call option against the position with the strike price above my average buy price.

If the venture will turn out successful, I will keep adding an extra 1 dollar per day to the futures contracts or might scale up to 2 USD per day (100 USD with leverage). 

I believe such investment approach can be very lucrative if done over longer period of time, say at least one year. By investing just 1 SD per day with 50x leverage for 365 days, you might hold an ETH-Perpetual future worth about $18,250. That would be worth of about 10 ETH (as of today price).

Besides investing daily into ETH futures, I'm also investing weekly both into ETH and BTC Perpetual future contracts. Interested to learn more about investing with crypto futures and call options? Visit my Poor Man's crypto hedge fund at Terramatris.eu