How to hedge bitcoin contracts

1. Any investment risk and return coexist. If you don't want risk, there will be no return.

2. 1、 Cryptocurrency
firstly, the scope of cryptocurrency is the smallest, including digital currency or virtual currency. For example, we can say that bitcoin is a kind of digital currency / virtual currency, but we cannot say that digital currency / virtual currency is a kind of bitcoin
furthermore, only currencies based on blockchain Technology (including cryptography and encryption algorithms) can be called cryptocurrencies. So cryptocurrency is a word specially prepared for bitcoin, Ethereum, and a lot of currencies based on blockchain technology. For example, CT currency and trip currency on the coin exchange platform
2. Legal currency
means that it does not represent the real goods or goods, and the issuer has not fulfilled the obligation to cash the currency in kind; A currency that becomes legal currency only by government decrees. The value of fiat money comes from the owner's belief that money will maintain its purchasing power in the future. Money itself has no intrinsic value, that is to say, when paper money comes into being, legal tender is essentially the paper money that can be circulated according to the law.

3. Bitcoin was about $3800 a year ago, and now it's between $38000 and $41000.

4. Of course, there is no problem with the Internet instry, as for you. Whether it will develop as well as the instry, no one can. I promise you. You can only say that you have a good grasp of yourself. There are only four words in the proposal, and the most important thing is persistence.

5. At present, Qube and bitcoin Genie support automatic hedging. Qube will be better, because it is an exchange platform, connecting many other exchanges, and monitoring is more convenient. Bitcoin genie is an independent platform, which should be developed and used by programmers themselves. Later, it was commercialized, and the interface was not friendly.

6. It is suggested that the main topic should be built on the server abroad to avoid the policy. This is OK, even if it is found, it will not be illegal. Thank you.

7. For example, the current price of bitcoin is US $10000

1. Suppose you use RMB 10000 to open 20 times leverage to do long
2. At the same time, you open 5 (4 hours) put options to hedge in bitoffer (US $250 cost)

in the first way, when bitcoin rises by US $500, the increase is 5%

1. If you use 20 times leverage to do long, the contract will double, that is to earn RMB 10000
2 Put options lose principal, that is, 250 US dollars (1750 yuan)
3, 10000-1750 = 8250 yuan (net profit)

the second, when bitcoin drops 500 US dollars, that is, a 5% decline

1, 20 times leverage, contract burst, loss 10000 yuan
2, five put options gain 2500 US dollars, that is 17500 yuan
3, 17500-10000-1750 = 5750 yuan (net profit)

8. Bitcoin is a junk coin that has no practical value and only has the function of hype. You don't want to give it to Warren Buffett for nothing. Where can you get any hedge!

9. For example, the current price of bitcoin is US $10000

1. Suppose you use 2000 yuan to open 20 times leverage to do long
2. At the same time, open a put option to hedge in bitoffer (US $20 cost)

&; First, when bitcoin rises by US $500, that is, by 5%

1. 20 times leverage, the profit is 100%, that is, 2000 yuan
2. Put option loses principal, that is, 20 US dollars (140 yuan)
3. 2000-140 = 1860 yuan (net profit)

& nbsp; 9989; Second, when bitcoin falls by US $500, that is, it falls by 5%

1. 20 times of leverage, the contract bursts, resulting in a loss of 2000 yuan
2. Put option gains US $500, that is, 3500 yuan
3. 3500-2000-140 = 1360 yuan (net profit)