Bitcoin investors are exploring innovative strategies to maximize their holdings without selling their assets. Roundtable anchor, Rob Nelson, and Sebastian Raffaele, Chief Technical Officer at Minotaur Trading Systems, delve into the benefits of using bitcoin as collateral for trading to enhance growth while managing risk.
“I hold a lot of bitcoin in my portfolio and I’m comfortable with the volatility,” Nelson shared. “I do daily cost average buying and don’t sell, but I’d like to leverage that asset more — maybe through options — to grow it further.” Raffaele explained that Minotaur’s approach allows clients to use bitcoin as collateral for trading without selling it. “The ability to hold bitcoin and generate income from it is a powerful passive income tool,” he noted, emphasizing the importance of risk management in such strategies.
Options on Bitcoin ETFs also began rolling out this week, allowing spot bitcoin holders to also deploy different options strategies for the first time through normal stock trading platforms.
Discussing the mechanics, Raffaele highlighted flexibility. “You can trade bitcoin or other assets using bitcoin as collateral,” he said. “But we prefer bitcoin because of its institutional backing and proven track record. Altcoins often lack the same reliability, making bitcoin a safer option for this approach.” He added that many traders overcomplicate strategies, taking unnecessary risks instead of focusing on consistent growth.
Nelson sought clarity on strategies to minimize risks while maximizing gains. Raffaele stressed the significance of managing leverage. “With low-margin trades and proper risk management, you can avoid liquidation even if bitcoin’s price drops,” he explained. “Imagine holding your bitcoin, never selling it, and making 2 to 5% monthly on top of it—that’s what we aim to achieve.”
In closing, Raffaele underscored the advantage of this method during market stagnation. “When bitcoin is flat or down, traditional holders don’t earn. But with our strategies, you can generate income regardless of market cycles,” he said, presenting a compelling case for leveraging bitcoin holdings responsibly.
