Sam Bankman-Fried (SBF) lied to his customers. That alone is bad.
But it’s even worse when those lies lead to losing billions of dollars of his customers’ money. His deception came to a head when his crypto exchange, FTX, collapsed last November.
Despite assuring customers that FTX was a good custodian of their funds, SBF had allowed his exchange to lend customer deposits to another company he founded, Alameda Research.
A leak of FTX’s balance sheet revealed that the two companies were too closely entwined… And that FTX’s assets were less than he’d claimed.
That was the beginning of the end, as customers rushed to withdraw their funds – and FTX came up about $8 billion short.
The exchange, once valued at $32 billion, was forced to declare bankruptcy.
Now SBF has been making more headlines in recent weeks with the start of his criminal trial. He’s potentially facing a life sentence in prison.
Hearing dramatic stories like this may make some traders wary of cryptocurrency exchanges.
That’s fair. But there’s another takeaway you should have when reading about SBF’s trial…
The cryptocurrency industry is seriously cracking down on fraud within its sphere.
Over time, this kind of crackdown will only have a positive impact on the crypto industry. But until then, investors will (rightly) still feel cautious about investing in cryptos.
In that case, how can you invest or trade relatively safely in a sector that’s still so exposed to this kind of activity?
The answer is actually quite simple: You play it the way I play it.
I’ve uncovered a way to help regular investors (those who aren’t necessarily savvy with crypto practices and technology) profit from this sector without taking big risks.
In fact, my readers have made gains like 37.8%… 98%… 72%… 41.6%… and more from the crypto sector.
And even if you’re still cautious, the good news is that we’ve made all these gains without having to put your money on a single crypto exchange or taking on absurd risks.
Let me explain…
My goal in recent years has been to find a way to profit from bitcoin and other cryptocurrencies without all of the risk of potential fraud or crypto crashes.
That’s because risk management has been one of the biggest lessons of my career.
When I started out in the 1980s, I didn’t have it. My risk controls were poor. And my drawdowns were too big for the capital I had.
I learned it along the way. At Spear, Leeds & Kellogg, your risk controls – what they let you lose on a trade – were so tight. It completely changed the way I traded.
Those lessons are how I went 20 years without a losing year. And the drawdowns – in other words, peak-to-trough falls for my profit and loss – were probably less than 4%.
That’s pretty much unheard of. That’s what impressed Jack Schwager enough to include me in his book Hedge Fund Market Wizards.
That’s the kind of laser focus I turned on the crypto markets in recent years.
I knew there had to be a way to profit from bitcoin without relying on exchanges or crypto wallets.
That’s exactly what I uncovered… And I’ve been helping my readers use it ever since.
As an example, on one trade we were right at the top of a bitcoin rally… But we saw resistance building in the market.
So we placed a trade that would profit if the crypto market fell.
And by following my trading strategy, we closed our trade for a 69% gain in roughly a week.
In the same window, bitcoin fell 9%.
This is why I call my strategy “bitcoin skimming”…
We’re pulling profits from the bitcoin arena without having to buy any bitcoin directly. Plus, we can profit whether bitcoin soars or plunges.
And I’d love to tell you more about how it works…
I’m planning a special Bitcoin Skimming event tonight at 8 p.m. ET.
There, I’ll go over how it all works… And why bitcoin skimming can lead to even bigger gains than just buying and holding bitcoin.
And I want to help you take advantage…
(Even better, this strategy I use can be applied to other trends as well… I’ve applied it to trends like artificial intelligence, the bond markets, and energy with great success.)
So whether you’re a crypto believer or simply looking for profits, I’d like to invite you to join me.
All I ask is that you reserve your spot right here for free.
See you tonight!
Editor, Trading With Larry Benedict
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