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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Thank you.
Nothing wrong at all with hedging against potential losses even when things are on the up side. You said it yourself a pump and dump is a possibility so better to protect your investment.
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Smart management, mate.
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Thanks! Figured why not, no I can rest easy. It's such a small hedge anyway.
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I like posts like this but I wish it was easier to grasp hedging or just making wise moves in general. I don't feel like there are enough guides on Leofinance to educate people like me who have been around here forever but just don't get it lol. I spent 1000 Leo on Cub and several thousand hive for leo. But, I don't make the right moves so I lose money. Posts or series of posts laying it out for members of leo would be ideal for the readers and the platform as we would probably buy in more. I have no clue with this matic thing is going to be but I want my share!!!! Just don't know how to find it. Seems like the information comes fast now but the implementation is slow. There should be time to get my act together and have a plan. But if you look at my wallets I am powered down itn Leo and almost in Hive. It's time to learn the slick moves and make money on the blockchain and refresh. This week was my 4th Anniversary on the blockchain and I accumulated lost and waited. Never took out a dime Feel like I could have done better.
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Yeah, there are so many different ways to invest in crypto. These short positions are just hedging the cryptos I actively hold (not including cub and leo). It is a very small hedge. The reality is staking on cubdefi is a good hedge as the APR offsets and downward price moves.
That is my main investing strategy of late, just stake more and accumulate cub tokens. The kingdoms are great cus now we are earning cub and more of the token we staked.
As for the polygon platform (matic) we will need cub tokens to buy into the pre-sale of that token (yet to be named).
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Good to hear because that's about as wide as my bandwidth goes lol
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Good luck with all of that. I just plan on hodling and throwing some more money into DeFi as I move forward. Keeping my eye on some of the stuff that is happening over on WAX. Might finally be time for a breakout over there...
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Yeah, I'm still stacking DeFi like crazy. This is literally $1,500 to insure 20% of my holdings (that is not cub/leo)
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Something I myself need to start implementing in my strategy as well! I bank a bit too heavily on DeFi and assuming that the massive APR I'm earning will outpace any potential downward price trends - in your opinion, what would be a solid hedge in a scenario like this? (FYI, I'm talking about $OSMO staked through the Osmosis platform).
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Same here. This was the bottom by the way. There will be pullbacks all the way up, but we probably won't see under $30k Bitcoin any time soon.
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