The founder of major crypto investment firm Galaxy Digital, Michael Novogratz, just called for Bitcoin to hit $100,000 by the end of the year.
Now, this blows my $50,000 price prediction out of the water, but since the top coin by market cap is already preparing to surpass this mark – which could happen in a matter of days – I am thinking I need to hop on the $100K train.
You see, on Monday an SEC filing was made public that showed that Tesla invested $1.5 billion in Bitcoin.
Bitcoin proceeded to skyrocket from $38,631 to an all-time high of $47,697 over a two-day period – a whopping 23% surge in price on Elon Musk’s vote of confidence.
Bitcoin has had a stellar year, to say the least. This time last year, the coin was trading around $9,800.
That means that this coin shot up $37,897 in one year.
And I am here to tell you that it’s not too late to profit on this top coin.
In fact, I have a way to make money on Bitcoin without even needing to purchase the coin at all.
I have a low-risk strategy that you can use to capitalize on Bitcoin with a higher return on investment than just buying the coin outright.
Get all of the details right here…
Buy Options Contracts on This Stock to Profit on the Bitcoin Rally
There are plenty of ways to profit on Bitcoin’s meteoric run. You can buy one coin for $48,000 – but here’s the thing – most people don’t have that much money to drop on a single investment.
Another option you have is buying a fraction of a Bitcoin for any dollar amount you’d like to invest. So if Bitcoin hits the $100,000 mark, you’d double your investment.
These are both great options, but I have an even better play that is lower cost, lower risk, with a higher return on investment.
Let me introduce Riot Blockchain (NASDAQ: RIOT).
RIOT is one of the largest Bitcoin mining operations in North America. How this works is Bitcoin “miners” receive a reward for coding complete blocks of verified transactions which are added to the blockchain.
What’s interesting is that RIOT is highly correlated with Bitcoin. This makes sense when you consider that RIOT‘s revenues are all in Bitcoin. RIOT reported that it generated 222 Bitcoins in the third quarter of 2020 alone. At current Bitcoin price levels, that’s over $10 million.
Let’s take a look at how RIOT performed compared to Bitcoin over 2020:
Chart Source: MarketWatchYou can see from the chart that RIOT‘s annual performance was twice that of Bitcoin.
Just to put that in perspective, after Elon’s announcement, Bitcoin jumped up 23%. RIOT skyrocketed 71%.
Talk about a one-two punch. RIOT‘s revenues and valuation are reflected with Bitcoin and they’re constantly adding more coins to their portfolio.
Now, you could buy the RIOT stock, which is trading around $33.80 at the time of writing, but here’s the thing… buying stock can get expensive and the return on investment is low.
That’s why I’m going to give you the best news yet – you can buy RIOT options contracts.
Options allow you to reduce risk to magnify returns 10-fold.
Let’s break it down.
A RIOT March 21, 2021 $40 Call option will cost you about $10.50 per 100 shares controlled.
That means you instead of buying 100 shares of the stock which would cost you $3,380, you can buy an options contract for $1,050 to control the same number of shares.
That’s roughly 25% less for a chance to make a greater return on investment.
Now, I have one more way that you can profit…
As I mentioned above, you don’t have to buy Bitcoin to get rich off of crypto.
There are tiny, virtually unknown coins hidden in this market – and they’re stacked with even more profit potential than the market’s top coin.
One coin, in fact, beat Bitcoin by 2,373% in only 17 days after some explosive growth.
And there’s many more where that come from. Learn all about it right here.
Talk soon,
Tom Gentile
