Hedging Some of My Crypto Holdings on the Cheap
This is a very interesting market we are in right now. Has bitcoin and the crypto market in general found its bottom this year or will there be another selloff?
This is the question everyone is asking. It honestly seems like a coin flip to me on what will happen. My opinion was also causing me confusion on what I should do with my holdings.
Hedging Solves the Dilemma
My problem on what to do was solved by simple putting on some cheap hedges on the futures.
Being that there is 20X leverage it doesn't take a lot of funds to put on some positions to offset any potential downside.
The key is that my liquidation prices are not tight either. Even if we get a bounce in the near-term before a potential selloff these positions will still be on as the liquidation prices are above the all time highs.
Of course crypto is getting a pump as I type this but that is ok, cus I'm net long crypto. The hedges are just a little insurance policy.
I'll take a moon shot over a pump and dump all day long!
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