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Author Topic: Hedging Bitcoin Value  (Read 323 times)
c0inbuzter (OP)
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August 22, 2017, 02:40:23 PM
 #1

Any idea on hedging the value of my bicoin holdings?
Koadharber
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August 22, 2017, 02:58:55 PM
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Any idea on hedging the value of my bicoin holdings?
Hedging on its price? You definitely mean about trading it for sure. Its possible but would really be hard since i have tried this kind of thing.It would somehow work for those who have big amounts of bitcoin on their stashes but for those on small time holders,its still possible but not really worth for the effort you do made.
spain cool
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August 23, 2017, 01:57:36 AM
 #3

Would he mean a store or a change in price would be the bitcoin he has. If those who have a lot of bitcoin it is very important to be designed as good as possible
zzwensel11
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August 23, 2017, 07:58:37 AM
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If you would completely hedge your bitcoin holdings against fiat, the final return of the investment portfolio (including bitcoin and hedge) will be zero. Bitcoins itself do not produce interest/returns. What would be the advantage over just holding fiat I ask myself.

░▒▓█ / / /X42/ / / WELCOME TO FEELESS FUTURE! █▓▒░
c0inbuzter (OP)
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August 25, 2017, 02:57:27 PM
 #5

Just giving ideas of what I mean by hedging.

1. Converting all bitcoins to fiat right now - good idea, but I stop from enjoying bicoin price growth.
2. I can wait and put some "stop loss" point . But quick selling of a big amount of bitoins at the same price is impossible. plus "stop-loss" could be just a temporal draw-down. plus... etc. 
3. I can convert a part of bitcoins to fiat as bitcoins grows. For instance keep a fiat value of bitcoin holdings constant while it grows.
4. Finally I can invest bicoins to a fiat currency grows (or bitcoin price falls). This I can do with futures, and different types of options.
5. Any other strategy?
6. Ideas?

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