Bybit Copy Trading Gold&FX offers effortless diversification into gold and FX markets, passive income opportunities, and a transparent profit-sharing model.

 has emerged as a great way to become quickly profitable, even in markets one may not be intimately familiar with, by replicating the orders and strategies of experienced Master Traders. And for experienced and successful Master Traders, it has created unique opportunities to efficiently earn additional profits.

Recognizing the growing popularity of copy trading, Bybit has introduced a new product, Copy Trading Gold&FX, which allows traders to seamlessly follow the market moves of experienced Master Traders and leverage their expertise to earn profit in 

 (FX) markets. Skilled gold and FX trading pros can now share their moves in real time and earn income based on profits they generate for their Followers.

Beyond the usual benefits of copy trading, Bybit’s Copy Trading Gold&FX allows traders to diversify their investments into the established, high-liquidity gold and FX markets. For many crypto traders, such diversification is key to hedging against the high volatility and risks associated with the 

 is Bybit’s latest innovative copy trading product targeted at the high-liquidity lucrative markets of gold and FX. 

Thanks to Copy Trading Gold&FX, Master Traders can monetize their trading expertise by helping their Followers turn a profit, while Followers without prior trading experience can effortlessly derive passive income through replicating professional strategies. The product focuses on gold, FX pairs and market indices.

 (MT5) platform. Bybit’s MT5 provides traders with access to various markets and products, including FX pairs, metals and other commodities.

Bybit Copy Trading Gold&FX operates differently from 

 For example, Copy Trading Gold&FX allows trading in gold, FX products and market indices. In contrast, Copy Trading Classic is designed for futures trading. Another highly important distinction is in the way profits are shared.

While both Bybit Copy Trading Classic and Copy Trading Gold&FX allow Master Traders to earn a portion of the net profits generated by their Followers, Copy Trading Classic calculates the net P&L daily, with the profit-sharing ratio based on the Master Trader’s rank. On the other hand, Copy Trading Gold & FX utilizes a High Water Mark (HWM) mechanism for profit sharing where Followers' profits are shared with Master Traders only when the net profit, which includes both realized and unrealized PnL, surpasses its previous peak. This is designed to ensure that Master Traders are rewarded for consistent profitability. A percentage of up to 15% can be shared.

Trading fees on the Copy Trading Gold&FX account vary by type of asset traded and are charged per lot. FX and gold are charged $6 per lot, and market indices are $3 per lot.

Trading volume within your Copy Trading Gold&FX account counts toward qualification for 

. This is a set of VIP grades for Bybit accounts that provide additional benefits and fee discounts commensurate with the VIP level achieved. However, note that volumes from Copy Trading Gold&FX are subject to a 10x multiplier for VIP level qualification to ensure that volume calculations for FX/Gold and the standard futures products are equalized, despite the typically large differences in trading lot sizes.

Unlike the standard copy trading account, which is based on daily profit sharing, profits from Copy Trading Gold&FX are shared once per week. The MT5 platform automatically calculates weekly distributions, and seamlessly shares the profits from Followers to their Master Traders using the HWM principle mentioned above.

For Master Traders,a copy trading account offers the valuable opportunity to monetize their trading expertise. Meanwhile it provides Followers a passive way to earn, with profits shared only if their Master Trader consistently achieves and beats their best results.

Bybit Copy Trading Gold&FX allows traders to diversify into the highly liquid, stable and well-established markets of gold and FX. Such diversification away from relying on crypto can be a great hedge against the volatility of the crypto market, or any potential prolonged bear markets in it. Thanks to the copy trading mode, even traders new to these lucrative markets can reap the benefits of diversification by copying the moves of FX and metal commodity pros.

Followers can learn from the trades and strategies of top performers in the FX and gold markets. Besides easy profitability, this provides an outstanding experience for learning and skill development.

Bybit’s MT5 platform provides a user-friendly interface, with functions and tools for traders at all levels to derive the best from their copy trading experience. An MT5 Copy Trading Gold&FX account ensures that the entire trading experience is as seamless as possible by providing advanced options, such as automatic trades and over 

90 indicators for thorough market analysis.

The HWM profit-sharing model ensures that Master Traders are motivated to maximize their Followers’ profits by consistently achieving profitability and surpassing their previous bests. Additionally, all trading moves of Master Traders are transparently visible, which helps to foster trust in the platform. Potential Followers can also view the leaderboard of the most profitable Master Traders, and choose their preferred trading 

There are, of course, risks associated with a Copy Trading Gold&FX account. First, there’s the risk of reliance on third parties outside of Bybit’s control, as Copy Trading Gold&FX is linked to the international forex and commodities markets. Secondly, masters’ past performances are not an ironclad guarantee of their future profitability. 

Additionally, Followers and Master Traders might initiate the same order based on different entry prices, due to factors like network delays or sharp, quick fluctuations in the asset’s price at the time of order execution. These price discrepancies may result in distinct outcomes. Finally, despite its unique benefits, the HWM profit-sharing model could motivate some Master Traders to adopt increasingly risky strategies in order to maintain their profit cuts.

Bybit Copy Trading Gold&FX is an excellent option for traders looking to become profitable from gold and FX markets. It also provides numerous other benefits, such as diversification away from crypto, a great learning experience and the transparent nature of this trading mode. The innovative HWM profit-sharing mechanism ensures that Master Traders give their best to maximize their Followers’ profits. 

With all of these advantages for Master Traders and Followers, Copy Trading Gold&FX is 

 for traders at any levels of experience.

Intermediate

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Benefits of Bybit Copy Trading Gold&FX: Unlock Your Profits With Ease

An MT5 demo account is a risk-free trading environment that simulates live market trading on MetaTrader 5. Read our article to get started with Bybit Gold&FX.

Want to master trading cryptocurrencies, forex and CFDs (metal, oil and indices) without risking your own capital? Bybit's 

 demo trading platform provides a simulated environment in which users can practice trading strategies, test automated systems and gain hands-on experience with professional trading tools.

In this guide, we'll explain what an MT5 demo account is, how it works and its key benefits, and provide step-by-step instructions for setting up your own demo account. We'll also help you decide if creating a demo account is right for your trading journey.

An MT5 demo account is a risk-free trading environment that simulates live market trading with MetaTrader 5. It lets traders use virtual funds to practice trading crypto, forex and CFDs while accessing all platform features and tools.

The Bybit MT5 demo account works by creating a 

 to give traders hands-on experience without financial risk. Operating on its own dedicated server (Bybit-Demo), the platform delivers real-time market data with intentional price variations to maintain a clear distinction from live markets while preserving realistic trading conditions.

Traders access the environment through Bybit's Testnet platform, where they can experiment with virtual funds and test trading strategies risk-free. Every aspect of the trading experience mirrors the live platform — from order execution mechanics to position management tools — ensuring traders develop practical skills that transfer directly to live market trading.

The MT5 demo account comes with the same professional tool kit found on standard MT5 accounts:

The platform maintains leverage settings and margin requirements identical to those in live trading accounts. These authentic market conditions allow traders to experience true market dynamics, build proper 

 habits and perfect their position-sizing strategies before trading with real capital.

Here's what makes the MT5 demo account an essential tool for traders.

Live market trading involves real capital and significant financial risk, often creating intense pressure that can impair learning and decision-making. The MT5 demo account eliminates this stress by providing a zero-risk environment in which traders can open positions, test aggressive strategies and learn from mistakes without monetary losses.

The MetaTrader 5 platform offers sophisticated trading tools that require time and practice to master effectively. By using the demo account, traders can thoroughly explore these features without pressure or time constraints.

Traders can spend time learning different chart types, testing various technical indicators and mastering complex order executions. This hands-on experience with the platform's tools builds the confidence and competency needed for successful live trading.

Successful trading requires well-tested strategies that perform consistently across different market conditions. The demo account serves as a laboratory where traders can methodically test their trading ideas, refine entry and exit points and optimize position sizing rules.

The platform provides detailed trading history and performance metrics for thorough strategy analysis. This allows traders to identify and fix weaknesses in their approach before risking real capital in live markets.

Beyond technical platform knowledge, the demo account helps develop essential professional trading skills. Traders learn to interpret market dynamics, understand how economic events affect prices and develop the emotional discipline needed for consistent trading.

The platform's real-time feedback helps traders understand their decision-making processes and improve their market analysis abilities. This practical experience creates a solid foundation for successful transition to live trading.

How to Get Started With an MT5 Demo Account

: Log in to your account. If you have a new account, fill in your email address and create a secure password. Click on 

 and verify your email if prompted. Only a Bybit Main Account holder can activate a Bybit MT5 Account.

: Congratulations! Your account has been created! Your 

 tab. You can also view your details when you click on 

. Keep the following login credentials (provided in the pop-up window) safe, as you'll need them to access the MT5 demo platform:

 in the drop-down menu, and select the amount of demo funds you would like to receive. You can choose from 

: Now that your demo account is funded, scroll down the page to download the MT5 platform based on your device’s operating system. For computers, you can download MT5 for Windows or macOS. Mobile traders can find the app on 

Optional: Set Up Your Trading Preferences

: Customize your MT5 interface by clicking on 

: Configure your charts and trading workspace:

: The demo server time zone is set to UTC+2 by default, and changes to UTC+3 during daylight saving time (DST). This setting cannot be modified.

An MT5 demo account is worth considering if any of the following apply to you:

Whether you're just starting your trading journey, or are looking to enhance your existing skills, the MT5 demo account offers the perfect balance of professional tools and risk-free practice. Take advantage of this opportunity to build your confidence and expertise before transitioning to live markets.

A Bybit MT5 demo account serves as an essential stepping stone along every trader's journey. It combines the powerful features of the MetaTrader 5 platform with Bybit's robust trading infrastructure, allowing you to practice trading cryptocurrencies, forex and CFDs risk-free.

While demo trading can't completely replicate the emotional aspects of live trading, it provides an ideal environment in which to master the platform, test strategies and prepare for managing real capital. Take advantage of this free resource to help build your confidence and refine your trading approach before transitioning to live trading.

Beginner

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MT5 Demo Trading: How to Set Up Your Bybit MT5 Demo Account

President Trump announced a private-sector investment of up to $500 billion to fund AI infrastructure, aimed at advancing U.S. leadership in the technology.

The S&P 500 hit a record high, rising 0.61% on strong earnings and optimism about Trump's policies. Investors await more earnings and jobless claims data. Gold rose above $2,760, driven by uncertainty over Trump’s tariff policies. Investors focus on the Fed’s January meeting, with key resistance at $2,763 and downside support at $2,582. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 2.67%, with Bitcoin and Ether dropping by 1.75% and 2.26%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is WLD, which surged nearly 5.5% following the boost from Trump's AI investment plan.

Worldcoin (WLD), founded in 2019, is a blockchain project that uses biometric eye scans to create unique digital IDs, ensuring privacy. Participants receive Worldcoin tokens for verification, granting access to free money. Co-founded by Sam Altman, it aims to build a global ID system and facilitate transactions via the World App, with $115 million raised in its Series C funding. Worldcoin's price surged after Trump announced a major AI investment plan involving OpenAI. The news boosted the crypto market, with Worldcoin's market cap rising significantly. AI-related projects also saw gains as traders grew optimistic about AI's influence on crypto.

Check Out the Latest Prices, Charts, and Data of 

 a private-sector investment of up to $500 billion to fund AI infrastructure, aimed at advancing U.S. leadership in the technology. The initiative, led by OpenAI, SoftBank, and Oracle under the joint venture "

," will include the construction of 20 data centers and create over 100,000 jobs. The project, already underway in Texas, is expected to support AI advancements like electronic health record analysis. The investment comes after the rollback of AI-related regulations from the Biden administration. Shares of Oracle and other tech companies saw a rise following the announcement.

Yesterday, BTC Spot ETFs experienced total outflows of $95.6 million, comprising $47.9 million from GBTC and $47.7 million from non-GBTC sources.

, with claims starting today at 1 PM UTC on the Arbitrum chain. The current pre-market price is $0.10. Eligibility includes Azuki NFT holders, top HYPE stakers, and holders of select tokens from platforms like Aave, Camelot, GMX, and Pendle. It's mainly targeted at whales, though some non-whales may qualify.

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Trump Unveils $500 Billion AI Infrastructure Investment to Boost U.S. Leadership

GoPlus is a web3 security provider whose user-driven security network provides protection for every step of the transaction lifecycle. Learn more here.

While online transactions offer a lot of convenience and speed, they do come with some potential security risks. Although problems like scams, hacks and data leaks are infrequent, some crypto traders end up having to deal with them. GoPlus hopes to solve these issues with its revolutionary security system. This project aims to be the first decentralized security layer for 

 builders. GoPlus has already managed to acquire many impressive customers, and has big plans for the future. 

What can users expect from GoPlus? Explore this guide to learn more about the system. 

 is a web3 security provider. Its user-driven security network provides protection for every step of the transaction lifecycle. GoPlus seamlessly integrates into products built on 

, Avalanche, TRON, Base and a variety of other chains.

Since its creation in 2020, GoPlus has been run by a group of three co-founders. The lead founder, known as Mike Lee, has also created other web3 startups, such as Delphy and Yixuan Tech. His experience working on decentralized markets demonstrated a need for better security services. Lee was joined by co-founder Allen Zhang, a former solution architect for Ant Group, and co-founder Eskil Xu, an economist who focuses on entrepreneurship and business.

Since its public launch in 2022, GoPlus has managed to attract a lot of positive attention. Its investors include Binance Labs, Animoca Brands, OKX Ventures and HashKey Capital. The platform has an average daily API call rate of 

, and it has protected clients from over 800,000 malicious threats.

GoPlus is tackling the issue of poor security in the web3 world. While blockchain products have significant inherent security, current setups make it quite easy for malicious actors to take advantage of customers. Industry reports suggest that the web3 industry loses 

GoPlus's focus is on addressing common security issues that can steal money from non-tech-savvy crypto users. However, the GoPlus team recognizes that the people most vulnerable to scams don't have the know-how to install their own security measures. Therefore, GoPlus aims to be a flexible system that can be added directly to web3 systems. Its team endeavors to create a helpful tool that any web3 project can connect to its network in order to keep users from falling for phishers and other scammers.

GoPlus is essentially set up as a decentralized software provider. The GoPlus ecosystem consists of a group of interested data providers, node providers, security developers and other contributors who provide computing power, store data and suggest changes to the GoPlus system. The trustless design requires contributors to stake tokens, so malicious actors lose money while valuable contributors earn it. 

GoPlus’s system then runs a comprehensive set of security features that any web3 developer can choose to install. Once GoPlus is connected to a 

 (DApp) or other part of a web3 ecosystem, user transactions are routed through various layers of the GoPlus architecture. Individual layers — such as data verification, anti-phishing and data security — provide security features as needed. Sophisticated security engines within the architecture can do everything from tracking common scammer IP addresses to dynamically testing smart contracts for vulnerabilities.

GoPlus has a robust suite of security features from which to choose. Following are the primary ways it provides value to web3 developers and users.

The GoPlus app is a comprehensive security module meant to combine all of GoPlus's features in one easy location. The app is accessible from a variety of devices, and enables users with full control over all their security needs. They can opt into and out of various security policies, and set their own risk levels.

The GoPlus Security API is a set of application programming interfaces that allow various applications to communicate with GoPlus and access its security features. The Security API suite from GoPlus has a modular design that allows users to choose from options, such as token security analysis, malicious address libraries, NFT security assessments and phishing site blockers.

GoPlus's Security SDK is a collection of software development kits that make it easy to integrate GoPlus features directly into any project. Interested developers can access a bundle of pre-coded security features that they can insert into their own designs.

 makes it easier to create and deploy secure cryptocurrency tokens. It includes open-source token contract templates, pre-audited designs and automated security checks. 

 chain that allows direct integration of security features into blockchain networks. The main benefit of SecNet is its on-chain firewall that monitors transactions in real time and stops high-risk transactions from running. 

In 2024, GoPlus was able to achieve many of its road map goals, 

 SecNet, SecHub and the SecWare protocol. Now that the basic protocols for the GoPlus security ecosystem are in place, GoPlus is transitioning to improving its customer service features. The next focus of the

 entails implementation of the security gas service model that will let contributors use the GPS token to protect on-chain transactions. 

GoPlus also plans to open its developer platform and create an open-sourced playground where community members can tinker around with new features for GoPlus. The final plan on the 2025 road map is to add support for more blockchains. 

The GPS crypto token is designed to facilitate the decentralized operation of the GoPlus platform. People can use it to pay for transaction fees and security features from GoPlus, and to help manage the staking system that secures the GoPlus network. The token’s total supply of 

 will be distributed in the following manner:

Since its release on the open market, the GPS token has almost doubled in value. Coin prices initially started at around $0.05, and quickly reached an all-time high of $0.1199 on Jan 22, 2025. Since then, its price has mostly stabilized within the range of $0.1191 (as of Jan 22, 2025). However, GPS is still a fairly new coin with a lot of potential for price change.

Though it's still too soon to get exact pricing predictions for GPS, the future looks promising for this token. CoinMarketCap reports 

, and on social media people are calling it a 

Looking to trade GoPlus tokens? Bybit now offers the GPS/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

To celebrate this listing, Bybit is holding 

 for you to earn a share of a 19,000,000 GPS prize pool.

GoPlus appeals to the needs of modern crypto users. It provides security in a convenient manner, which has helped its token reach a respectable price. Investors who like working with new startups and tech-based companies may enjoy getting GPS tokens, especially during the current hype for the new token drop. Since the token has significant utility within the GoPlus ecosystem, its ability to maintain value over the long term is also promising.

However, GoPlus is still quite new, and it’s impossible to guarantee its success. The project relies on a small team, and anything that goes wrong could lead to a potentially major drop in the GPS token’s value. If GoPlus’s team fails to continue developing its product, enthusiasm and interest in the token could wane. Therefore, GPS investors need to pay close attention to market conditions and keep their portfolios diversified if they want to work with this token. 

GoPlus provides a valuable service for people looking to enhance web3 products. By implementing security features from the ground up, GoPlus addresses a lot of the common challenges that crypto users face. As long as it can continue to build on its current success, GoPlus has the potential to become an essential part of many other crypto systems.

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GoPlus (GPS): Your Gateway to Safer Crypto Transactions

Options

Explainers

A long-term options strategy, we explore covered calls in this article, including what they are, how they work, and more.

Are you looking for an investment strategy that allows you to generate income while mitigating risk? Covered calls might be the answer you’ve been searching for. In this comprehensive guide, we’ll take a deep dive into the world of covered calls, discussing their mechanics, implementation, benefits, drawbacks, and even tax considerations. By the end of this post, you’ll have a solid understanding of this versatile strategy, and be equipped to answer the question, “what is covered call?” to decide if it’s the right fit for your investment portfolio.

Covered calls are a popular options strategy that involves covered call writing, which means to sell covered calls on crypto you already own. This enables you to earn extra income from the premiums received, while you continue to own the underlying asset.

At the core of the covered call strategy are two essential components: the call option and the underlying cryptocurrency. We will delve into the specifics of each of these components.

A call option is a contract allowing the buyer to buy tokens or a futures contract at a set price (also known as the strike price), before the option’s expiry. This gives them the legal right to do so. Call options are priced using mathematical models such as the 

 or Binomial pricing models, with the price determined by parameters like:

The interplay between option pricing and the underlying cryptocurrency plays a key role in covered call strategies. A covered call strategy involves holding a long position while selling call options on that same cryptocurrency. This approach can provide potential income in neutral to bullish markets and may also offer a selling price above the current cryptocurrency price in rising markets.

Executing a covered call requires ownership of the underlying cryptocurrency, which guarantees that you can deliver the tokens if the option is exercised. In a covered call, you sell a call option on the crypto you already own, which serves as a ‘cover’ for the call option. This position provides downside protection and generates income through the sale of call options.

To sell a covered call, you must possess at least a percentage of the underlying crypto. Without ownership of the underlying crypto, it’s not possible to execute a covered call strategy.

Having understood the basics, it’s time to examine the procedure of implementing a covered call strategy. This involves selecting a stable cryptocurrency, selling call options with your chosen strike price, and setting an expiration date.

During this process, factors such as the cryptocurrency’s price stability, 

, dividend payments, and your intended result should be taken into account. By carefully analyzing these elements, you can optimize your covered call strategy for maximum income generation and risk management.

A key aspect of choosing a crypto for a covered call strategy is to prioritize stability and low volatility. Stable cryptocurrencies minimize the risk of price fluctuations and enable you to generate consistent income from selling call options. To evaluate a crypto’s stability and its potential impact on crypto prices, you can use the following tools:

Choosing low volatility crypto is particularly advantageous for covered calls, as it reduces the risk of the option being exercised. This strategy helps in creating a steady income flow while reducing the likelihood of losing the underlying crypto.

Picking the Strike Price and Expiration Date

Choosing the most suitable strike price and expiration date is a crucial step in your covered call strategy. The strike price should be chosen above the current cryptocurrency price, but within a range that you’re comfortable with. You may also want to consider using technical analysis to identify resistance levels on the chart to determine the best strike price.

When it comes to setting the expiration date, it’s important to balance income generation with risk management. Here are some considerations:

Selling covered calls offers several significant advantages, such as generating income and reducing risk. By selling call options, you can generate income from the premiums received while still retaining ownership of the underlying cryptocurrency.

We will now examine in greater detail these two main advantages of selling covered calls: generating income and mitigating risk.

Selling covered calls can generate additional income that supplements your investment returns. When you sell a call option, you receive a premium that can be retained as income. Furthermore, selling covered calls enables you to establish a predetermined sale price for the cryptocurrency and generate additional income periodically.

The average income potential when selling covered calls can vary, but traders generally aim to achieve a consistent monthly income of around $3,000 or $36,000 per year.

Covered calls can also help mitigate risk by providing downside protection and generating income. If the cryptocurrency price decreases, you still own the cryptocurrency and can benefit from any potential recovery. Additionally, by selling the call option, you receive a premium that can help offset potential losses.

It’s worth mentioning, though, that the downside protection offered by a covered call strategy is constrained to the received premium. This means that if the cryptocurrency price drops significantly, you may still incur losses.

Despite the benefits of covered calls, there are also potential drawbacks to consider. The two primary disadvantages of a covered call strategy are the capped upside and increased transaction costs.

We will now scrutinize these potential disadvantages and their effect on your covered call strategy.

The capped upside in a covered call strategy means that you may miss out on potential gains if the cryptocurrency price rises significantly. With a covered call, the upside potential is limited to the strike price plus the premium received from selling the call option. Consequently, if the cryptocurrency price surpasses the strike price, the additional gains will not be realized by the investor.

You can mitigate the risk of capped upside by choosing cryptocurrency with little potential for significant increases or by adopting a collar strategy. This involves buying a protective put option to restrict downside risk while selling a covered call option for income generation.

Transaction costs, such as commissions and fees, can eat into the profits generated from selling covered calls. These costs may include brokerage fees, commissions, and other charges associated with executing the trade. Consequently, it’s important for investors to factor in transaction costs when evaluating the possible profitability of covered calls.

To minimize transaction costs, consider using a low-cost broker or trading platform that offers 

Covered calls work best in situations of market stagnation or low volatility, where major price movements are unlikely. In these situations, you can maximize income generation and minimize risk by selling covered calls on stable, low-volatility cryptocurrency.

We will now examine the best situations for using covered calls, with an emphasis on market stagnation and low volatility.

 occurs during periods of minimal or no movement in the overall market. In such scenarios, the profitability of covered calls can be impacted due to limited potential for income generation and reduced option premiums. However, covered calls can still be profitable in flat markets, as they offer a way to generate income even when the market does not rise.

By selecting stable cryptocurrency with limited upside potential and selling covered calls on these crypto, you can capitalize on market stagnation and generate consistent income.

Low-volatility cryptocurrencies are ideal for covered call strategies, as they minimize the risk of the option being exercised. When volatility is low, the premiums received from selling call options tend to be lower, which reduces the probability of the cryptocurrency price reaching the strike price and the option being exercised.

By focusing on low-volatility crypto and selling covered calls on these cryptos, you can generate steady income while minimizing the risk of losing the underlying cryptocurrencies.

Tax Considerations and Retirement Accounts

Before you implement a covered call strategy, it’s crucial to contemplate the likely tax consequences and the involvement of retirement accounts like IRAs. Covered call strategies can offer tax benefits, but there are also restrictions to be aware of.

This section will cover the tax implications of covered calls and their application in retirement accounts.

The tax implications of selling covered calls can impact your overall investment returns. In the United States, profits from covered calls are generally considered short-term capital gains and are subject to taxation at your ordinary income tax rate. However, there may be tax benefits associated with selling covered calls within an IRA or other retirement account.

It’s always a good idea to consult with a tax professional or accountant for more specific guidance on the tax implications of selling covered calls and how to offset any losses you may incur.

Selling covered calls within an IRA or other retirement account can offer tax advantages, such as deferring or 

. However, there are limitations and restrictions associated with the use of covered calls in an IRA, which can vary based on the custodian and your eligibility to trade options.

Before employing covered calls in a retirement account, it’s crucial to seek advice from a tax professional or financial advisor to ensure compliance with any applicable rules and regulations.

To better understand the covered call strategy, let’s consider a real-life example. Suppose you own 100 tokens of a cryptocurrency, currently trading at $50 per token. You decide to sell a call option with a strike price of $55, expiring in 30 days, and receive a premium of $2 per token for the option.

If the crypto price remains below $55 at expiration, the call option will expire worthless, and you’ll keep the $200 premium as income. However, if the crypto price rises above $55, the call option may be exercised, requiring you to sell your tokens at the $55 strike price. In this case, you’d still keep the $200 premium and make a capital gain of $5 per token, resulting in a total profit of $700.

Covered calls are a versatile investment strategy that can help generate income and mitigate risk. By understanding the mechanics, implementation, benefits, drawbacks, and ideal scenarios for using covered calls, you can make informed decisions about whether this strategy is right for your investment portfolio. As always, consult a financial professional before making any investment decisions and consider the tax implications of your chosen strategy.

A covered call strategy involves selling out-of-the-money calls on the cryptocurrency owned, with the potential to earn income if the price stays below the strike price. The investor sells a call option against a long position in an asset and keeps the premium if the crypto finishes below the call's strike price.

When using a covered call strategy, losses may occur if the cryptocurrency price drops below the breakeven point. Furthermore, investors may miss out on opportunities for higher returns if the price rises above the effective selling price of the covered call. Therefore, it is important to calculate the static and if-called rates of return before entering into a covered call as these can indicate whether money will be lost or gained.

Closing a covered call before it expires can be a smart move if the cryptocurrency price has gone up significantly, since you can buy back the option for a profit due to the lower option premium. Additionally, you can take advantage of the price increase and sell another call with a lower strike price that will generate more option premium and increase the chance of making a net profit.

A covered call is an options strategy in which an investor holds a long position in an asset and writes (sells) call options on that same asset to generate income. For example, suppose an investor owns 100 tokens of XYZ cryptocurrency trading at $45 and wants to receive additional income in exchange for giving up upside potential. In that case, they can sell a near-month call option with a strike price of $50. If the cryptocurrency reaches this level, they will receive payment of the option premium in exchange for the option buyer taking ownership of the cryptocurrency.

What Is a Covered Call? A Comprehensive Guide

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards