Bitcoin price insurance

[wangxinxi]

Most of you posses some Bitcoins. If the price goes down, you lose money. Do you need some kind of insurance that will compensate you if the price goes down?

[zetaray]

Their is the need for theft insurance, not insurance for bitcoin price fluctuations. Prices going down is usually a time to buy bitcoin.

[Foxpup]

Do you need some kind of insurance that will compensate you if the price goes down?

We already have some kind of insurance against that (you should know, you're providing it). What we need is a better kind of insurance, ie, vanilla options. Get to it.

[wangxinxi]

Do you need some kind of insurance that will compensate you if the price goes down?

We already have some kind of insurance against that (you should know, you're providing it). What we need is a better kind of insurance, ie, vanilla options. Get to it.

Haha, thanks. We will probably release vanilla options by the end of Jan. I just want to know whether people need it. 

[Foxpup]

Haha, thanks. We will probably release vanilla options by the end of Jan. I just want to know whether people need it. 

Yeah, I just found your other thread about that, thereby making my earlier response seem redundant. I've spoken on numerous occasions about the need for vanilla options, and now you're making me put my money where my mouth is. I'll need some time to think about this.

[Amph]

the insurance against that is to hold, like always

[Q7]

If a person has 1000 bucks, buy 250 bucks worth of bitcoin. The remaining balance is your insurance *if the price goes down*. If it does happen, use another 250 to buy more. whatever balance remaining is still your insurance in case of a drop. As it goes down further, use that to buy more until you are dry 

It sounds silly because if you don't believe in any of these insurance thing, then use the whole of 1000 to buy at the spot price.

[Barabbas0]

If a person has 1000 bucks, buy 250 bucks worth of bitcoin. The remaining balance is your insurance *if the price goes down*. If it does happen, use another 250 to buy more. whatever balance remaining is still your insurance in case of a drop. As it goes down further, use that to buy more until you are dry 

It sounds silly because if you don't believe in any of these insurance thing, then use the whole of 1000 to buy at the spot price.

You really have no idea how hedging works, do you? I, for one, would value BTC derivatives. At the very least, I expect a lot of attention to married puts.

[Undermood]

Their is the need for theft insurance, not insurance for bitcoin price fluctuations. Prices going down is usually a time to buy bitcoin.

some business dealing with bitcoin maybe need this service to lock their profit and eliminate the price fluctuation risk specially when bitcoin is under down turn!

[lihuajkl]

Their is the need for theft insurance, not insurance for bitcoin price fluctuations. Prices going down is usually a time to buy bitcoin.

some business dealing with bitcoin maybe need this service to lock their profit and eliminate the price fluctuation risk specially when bitcoin is under down turn!

this is like a kind of future contracts to hedge the risk! But personal investors can also profit from trading it!

[Barabbas0]

Their is the need for theft insurance, not insurance for bitcoin price fluctuations. Prices going down is usually a time to buy bitcoin.

some business dealing with bitcoin maybe need this service to lock their profit and eliminate the price fluctuation risk specially when bitcoin is under down turn!

this is like a kind of future contracts to hedge the risk! But personal investors can also profit from trading it!

Or like any derivatives contract. One trader's risk is another trader's protection. You can use options for extra leverage (risk) or to move around delta, protecting your downside at the expense of the upside. FWIW, November '13 would be less "violent" if options were available. Put prices would be balanced by those seeking protection or leverage.

[hdd3go]

Bitcoin insurance ,interesting , and more and more Bitcoin financial instruments are coming true.

[Supercrypt]

never thought about this before "bitcoin price insurance"
and how it works?

[LiteCoinGuy]

maybe your answer is "LOCKS" from

https://coinapult.com/

?

[Q7]

If a person has 1000 bucks, buy 250 bucks worth of bitcoin. The remaining balance is your insurance *if the price goes down*. If it does happen, use another 250 to buy more. whatever balance remaining is still your insurance in case of a drop. As it goes down further, use that to buy more until you are dry  

It sounds silly because if you don't believe in any of these insurance thing, then use the whole of 1000 to buy at the spot price.

You really have no idea how hedging works, do you? I, for one, would value BTC derivatives. At the very least, I expect a lot of attention to married puts.

Hedging is a form of investment insurance. If you bet 250 and pile up another 500 when price goes down, basically that is done to protect your position.

[Foxpup]

If a person has 1000 bucks, buy 250 bucks worth of bitcoin. The remaining balance is your insurance *if the price goes down*. If it does happen, use another 250 to buy more. whatever balance remaining is still your insurance in case of a drop. As it goes down further, use that to buy more until you are dry  

It sounds silly because if you don't believe in any of these insurance thing, then use the whole of 1000 to buy at the spot price.

You really have no idea how hedging works, do you? I, for one, would value BTC derivatives. At the very least, I expect a lot of attention to married puts.

Hedging is a form of investment insurance. If you bet 250 and pile up another 500 when price goes down, basically that is done to protect your position.

[tyrexs]

im just hear bitcoin price insurance, what is that

[johnyj]

The insurance against theft or lost password is most needed, but unfortunately there is no way to prove that the coins are stolen by others instead of you

[Barabbas0]

im just hear bitcoin price insurance, what is that

You should read up on option strategies, but basically, say you own 100 shares of XYZ. XYZ currently trades at $100/share. You want protect yourself against a downturn, so you decide to buy a $95 put contract. That contract gives you (buyer) the right to sell 100 shares (1 option contract per 100 shares) of XYZ at $95 (Strike price) at any point between now and an agreed upon point in the future (expiration date).

The seller has the obligation of taking those shares if you exercise. This is risky, as XYZ could plummet to, say, $50 and now the seller has to buy at $95 and sell at $50. This risk is reflected in the price of the contract.

If XYZ rises, you profit from your shares, but lose the cost of the put contract. If it falls, you get to sell at $95, even if XYZ goes bankrupt.

That's put insurance in a nutshell. There's also calls which give the buyer the right to buy at a certain price. In November 2013 if you could have purchased a $2000 BTC call, it probably would have been extremely pricey, but in early 2014 when the price plummeted you would have only been out the cost of the call contract, instead of holding onto a depreciating asset.

[HeroCat]

This is ok, if you have many BTC, then yes, you can make insurance. I do not know any company, which do that type of BTC price insurance