I have been using dual currencies for a long time, and I am still using dual currencies for testing. However, I feel that the greatest value of dual currencies is to use very clear prices to bottom out or sell high. For example, if you have made sufficient psychological preparations, you can bottom out at $70,000, and it doesn’t matter if the price is lower; or sell at $80,000, even if the price is high, it doesn’t matter.

This state works very well with dual currencies because you clearly know where your needs are. However, I personally suggest that this should still focus on the short term, T+1 to T+3 is already quite a lot. I think the nine days proposed by Sister Tree is not safe enough; the longer the time, the more variables there are.

The most suitable use of dual currencies is still short-term, because in the end it is either buying the spot of Bitcoin or selling the spot of bitcoin:native, with no room for bargaining.

When prices are quite volatile and it is even unclear where the bottom price is, using options to sell puts (equivalent to buying low) or selling calls (equivalent to selling high) is a better solution.

This is because options do not require 100% of the funds. For example, to buy one BTC at a low price, you need to prepare $70,000 in cash, whereas with options, you might only need a margin of $7,000. Selling is the same; selling one BTC with dual currencies requires a complete BTC spot, whereas options might only need a margin of $7,000.

Another benefit of options is the error tolerance. For example, if you place a sell put at $70,000, but when it expires, Bitcoin drops to $68,000 and continues to drop to $65,000. At this moment, with dual currencies, it will buy this Bitcoin at $70,000. Your actual loss would be $5,000.

(Buying one BTC worth $65,000 with $70,000)

Whereas with options, you will only lose $2,000 in margin, and you can still buy BTC at $65,000, which means you actually still profit.

(Buying BTC at $65,000 after $70,000 - $2,000, still having $3,000 left)

In simple terms, if you use $70,000 to buy BTC, dual currencies directly deduct the money, while options only deduct part of the margin, and you still have the principal to buy at a lower price.

Of course, relative to this, options also have a risk, which is that if the margin is insufficient, you might be forcibly liquidated. For example, if BTC spikes down to $50,000 and then is instantly pulled back to $70,000, the options may not have sufficient margin and could be forcibly liquidated, while dual currencies remain safe.

Of course, for me, whether it’s dual currencies or options, they are both the most suitable for short-term use, and the risk is relatively controllable. This is limited to myself.

A @Gate, trading more markets

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