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Author Topic: Can I take more risk with stocks because i have bictoins? so it hedges in case  (Read 152 times)
Borilla (OP)
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December 11, 2017, 04:47:39 PM
 #1

in case of a crash.

Or what's the best way to hedge bitcoins long term?
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TaxiBloger
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December 11, 2017, 04:59:52 PM
 #2

in case of a crash.

Or what's the best way to hedge bitcoins long term?

Very incomprehensible question is written by you. What do you mean under "hedges in case".

P.S: you can do everything you want, all risks depends on your purpose and greed.
gantez
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December 11, 2017, 05:33:32 PM
 #3

OP, it is actually profitable to diversify just like you are thinking with stock but while you are thinking stock , also consider investing on altcoin. Some altcoins also have good potentials just like you have benefited from bitcoin, they can grow your finance faster than stock would do.

All you need do is make a research on the promising coins. Ripples, glasscoin , nem can be good.
Jree247
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December 11, 2017, 06:40:39 PM
 #4

OP, it is actually profitable to diversify just like you are thinking with stock but while you are thinking stock , also consider investing on altcoin. Some altcoins also have good potentials just like you have benefited from bitcoin, they can grow your finance faster than stock would do.

All you need do is make a research on the promising coins. Ripples, glasscoin , nem can be good.


Good advice. The returns in alt coins can be life changing.
gredisgold88
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December 11, 2017, 07:33:02 PM
 #5

in case of a crash.

Or what's the best way to hedge bitcoins long term?

safely, you save with altcoin like a waves or xcp and buy some good quality altcoins, maybe altcoins help in bitcoin mining is a good assets . surely , this is the best way to save and gain profit on your btc.
brushtooth
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December 11, 2017, 08:06:20 PM
 #6

in case of a crash.

Or what's the best way to hedge bitcoins long term?

Taking more risks with stocks is not hedging against a crash in bitcoin, in fact it is doing exactly the opposite. Stocks can be a good hedge against bitcoin because they are far more stable and steady returns. Likewise so could investments such as gold or real estate. But buying risky stocks will only increase your exposure to risk and mean any negative volatility in bitcoin could only hurt you more.

Hydrogen
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December 11, 2017, 09:04:06 PM
 #7

There may not be a great hedge against bitcoin. A few options that come to mind.

#1 Bank stocks Crypto and banks are business competitors in many regions, similar to coke versus pepsi. If bitcoin ever fails, banks stand to gain the most from it. This could make bank stocks a decent hedge but given their already high market saturation and low growth potential there may not be much room for profits, there.

#2 Bitcoin short plays The obvious choice, needs no explanation.

Rather than opting for a hedge, it could be better to invest in other things which look like solid investments. Hedges could perform better as short term strategies under risky conditions. Hedging over long(er) 5-10 year timeframes as potentially with bitcoin could be too long of a window for hedges to be particularly useful.
aso118
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December 11, 2017, 10:52:29 PM
 #8

in case of a crash.

Or what's the best way to hedge bitcoins long term?

For a hedge, people usually look for negative correlation. Unfortunately for you, there is no asset class which has a negative correlation with cryptocurrencies. If you are looking specifically to hedge Bitcoin, you could try to buy Bitcoin Cash. It typically has an inverse correlation with bitcoin's price.


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todiefor17
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December 11, 2017, 10:53:27 PM
 #9

Spliting your capital is really a good plan, if you're losing in stocks you could get it back from Bitcoins. I think you're doing great.

odolvlobo
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December 11, 2017, 11:34:59 PM
 #10

in case of a crash.

Or what's the best way to hedge bitcoins long term?

It is reasonable (and also a good strategy) to hedge using another risky asset as long as the correlation between the two is low.

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