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Author Topic: Any service/way to remove/reduce volatility risk, for crypto?  (Read 210 times)
cryptoheadd (OP)
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June 12, 2018, 12:17:33 PM
 #1

There's a huge volatility risk involved if a company stores Bitcoin/Ethereum/Crypto in a Hot/Cold Wallet. Is there any service/method to remove/reduce such risk?

Thanks in advance.

Zerbis
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June 12, 2018, 12:21:38 PM
 #2

One way is to open hedge position.

Take a look to him: https://bitcointalk.org/index.php?topic=2572722.msg29386569#msg29386569


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Kakmakr
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June 12, 2018, 12:32:44 PM
 #3

There are a lot of Payment processors that are converting BTC to Fiat as it is received, which eliminates the volatility completely. They even offer the merchants the option to structure the conversion, by pre-configuring the setup to store a specific percentage of coins as determined by the merchant. So if you do not want all 100% of the received coins, converted to Fiat, then you tell them what percentage of the coins must be converted immediately and what percentage of coins must be left in BTC.

This is not the ideal solution, but it helps the merchants that does not want to deal with the volatility.  Wink

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Zerbis
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June 12, 2018, 12:36:08 PM
 #4

I think he had some coin stored in cold wallet, and he would protect their FIAT value without moving them... If so, better way as i wrote is hedging  Smiley

There are a lot of Payment processors that are converting BTC to Fiat as it is received, which eliminates the volatility completely. They even offer the merchants the option to structure the conversion, by pre-configuring the setup to store a specific percentage of coins as determined by the merchant. So if you do not want all 100% of the received coins, converted to Fiat, then you tell them what percentage of the coins must be converted immediately and what percentage of coins must be left in BTC.

This is not the ideal solution, but it helps the merchants that does not want to deal with the volatility.  Wink

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cryptoheadd (OP)
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June 12, 2018, 01:11:27 PM
 #5

Thanks a lot for the solution, @Zerbis. Smiley

However, I'm looking for an API based solution to integrate in a platform, so as to automate the whole process. Not looking for a hedging based solution as that is not scalable.
If a service takes the hedging risk on our behalf, that'll will work as well. (But APIs are required.)

There are a lot of Payment processors that are converting BTC to Fiat as it is received, which eliminates the volatility completely. They even offer the merchants the option to structure the conversion, by pre-configuring the setup to store a specific percentage of coins as determined by the merchant. So if you do not want all 100% of the received coins, converted to Fiat, then you tell them what percentage of the coins must be converted immediately and what percentage of coins must be left in BTC.

This is not the ideal solution, but it helps the merchants that does not want to deal with the volatility.  Wink

I'm looking for a solution to convert fiat to crypto automatically, not the other way around. Smiley
Thanks for the reply, @Kakmakr.
Zerbis
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June 12, 2018, 01:19:51 PM
 #6


Another way are Futures: as lot of commodity firms do, you should use futures to cover your portfolio. But no api available, Betterway remain an experienced trader that work or drive you trought this process.

Thanks a lot for the solution, @Zerbis. Smiley

However, I'm looking for an API based solution to integrate in a platform, so as to automate the whole process. Not looking for a hedging based solution as that is not scalable.
If a service takes the hedging risk on our behalf, that'll will work as well. (But APIs are required.)

There are a lot of Payment processors that are converting BTC to Fiat as it is received, which eliminates the volatility completely. They even offer the merchants the option to structure the conversion, by pre-configuring the setup to store a specific percentage of coins as determined by the merchant. So if you do not want all 100% of the received coins, converted to Fiat, then you tell them what percentage of the coins must be converted immediately and what percentage of coins must be left in BTC.

This is not the ideal solution, but it helps the merchants that does not want to deal with the volatility.  Wink

I'm looking for a solution to convert fiat to crypto automatically, not the other way around. Smiley
Thanks for the reply, @Kakmakr.


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MintDiceSupport
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June 12, 2018, 03:07:58 PM
 #7

Would a service like MetalPay be what you are referring to?

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June 12, 2018, 03:20:03 PM
 #8

OP, a peace of advice cause I checked the refer hedge page and I found out that it an investment comapny which promised their a good ROI and every company that does that usually scam their in the end. So, I will advice you to be careful and if you still want to go on with it, invest the amount you can afford to loose.

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