Virtual currency hedging business
Publish: 2021-05-18 21:58:32
1. You should never expect to get rich through virtual money or any emerging technology. It's always important to be alert to anything that sounds incredibly good or goes against the basic laws of the economy
virtual currency is a growing field of innovation, where there are business opportunities as well as risks. Even though bitcoin has been developing at a high speed so far, there is no guarantee that it will continue to grow. Any investment of time and resources related to bitcoin requires entrepreneurship. There are many ways to make money with virtual currency, such as mining, speculation or new business. All of these methods are highly competitive and have no profit guarantee. Everyone should make their own appropriate assessment of the costs and risks involved in any such project
since 2013, the popular virtual currencies are bitcoin, Laite coin, Fuyuan coin, doggy coin, Yuanbao coin, Ruibo coin and so on.
virtual currency is a growing field of innovation, where there are business opportunities as well as risks. Even though bitcoin has been developing at a high speed so far, there is no guarantee that it will continue to grow. Any investment of time and resources related to bitcoin requires entrepreneurship. There are many ways to make money with virtual currency, such as mining, speculation or new business. All of these methods are highly competitive and have no profit guarantee. Everyone should make their own appropriate assessment of the costs and risks involved in any such project
since 2013, the popular virtual currencies are bitcoin, Laite coin, Fuyuan coin, doggy coin, Yuanbao coin, Ruibo coin and so on.
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.
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. The processor is not suitable for mining, and the performance of notebook is lower than that of desktop, so it is not suitable for mining
at present, the vast majority of professional mining equipment use graphics card.
at present, the vast majority of professional mining equipment use graphics card.
4. If halving leads to greater difficulty in mining, then the reward will surely be higher. Because bitcoin is graally scarce, it will rise. At present, bitcoin on bitoffer is US $9300. If it is halved and doubled, the later theoretical price is US $18600. Let's give it a discount. How can it be US $15000
5. The market has graally improved, arbitrage is not as easy as before. For this kind of arbitrage software, it is either very expensive or deceptive
because of the rapid development of virtual money market, arbitrage is very difficult.
because of the rapid development of virtual money market, arbitrage is very difficult.
6. I think, first of all, you need to understand what forward contracts and currency options are ~
in essence, a forward contract is to deliver an asset at a certain time in the future according to the price agreed by both parties. The characteristic is that the price of the contract is agreed in advance, and because the future price is unknown, so when one party locks in the transaction price, the other party has to bear the risk, and may gain or lose money
options are almost the same, in which one party pays the other party a sum of money first and gains a right. This power means that the party who purchases the option can choose to sell or buy an asset on the maturity date (European style) or any day before the maturity date (American style). The seller of the option, that is, the person who receives money at the beginning, must unconditionally accept to buy or sell the asset at the agreed price. The power involved in currency options is the power to buy and sell currency or foreign exchange
understanding these two, let's look at the foreign exchange risk of importers and exporters. It mainly refers to the risks caused by foreign exchange fluctuations. In other words, if I export 1 million US dollars today, the exchange rate will be 6.5 RMB for 1 US dollar; But maybe the money won't arrive until the day after tomorrow. At that time, the exchange rate will change to 6.30 RMB for 1 US dollar, so I lost 200000 RMB. In fact, the risk also appears in the difference between the signing of the contract and the delivery date. If you have a long time between signing a contract and paying for delivery, interest rate fluctuation can always bring risks
for this reason, forward contracts and currency options come in handy. If: now I want to export a batch of goods, but the payment for goods - 1 million US dollars will be received in three months, so I signed a forward currency contract with one of my counterparties, and agreed to sell 1 million US dollars at the price of 6.45 RMB: 1 US dollar, that is to say, no matter how the exchange rate changes in the future, as long as the other party does not breach the contract, I can use this exchange rate to lock in the RMB that can be exchanged for one million US dollars in the future. However, if the appreciation of RMB is generally expected in the market, the RMB dollar exchange rate of forward contract is lower than that of spot contract
the same is true for options, except that you have to pay a sum of money in advance. At this time, the higher the exercise price agreed in the contract, the more money you have to pay. The forward price is fixed at one time point. As an exporter, you buy a US dollar put option (or RMB call option, because you want to exercise when the US dollar falls or the RMB rises). If the US dollar falls, you choose to exercise to sell; If the U.S. dollar rises, you will not have the right to go directly to the spot market for RMB. So you lock in the foreign exchange risk
for importers, it is similar to the above discussion, except that the forward contract is to sell the local currency and buy the foreign currency; The option should choose foreign currency call option or local currency put option
the level is limited, I hope it can help you. The hand is slow. I hope it's too late~
in essence, a forward contract is to deliver an asset at a certain time in the future according to the price agreed by both parties. The characteristic is that the price of the contract is agreed in advance, and because the future price is unknown, so when one party locks in the transaction price, the other party has to bear the risk, and may gain or lose money
options are almost the same, in which one party pays the other party a sum of money first and gains a right. This power means that the party who purchases the option can choose to sell or buy an asset on the maturity date (European style) or any day before the maturity date (American style). The seller of the option, that is, the person who receives money at the beginning, must unconditionally accept to buy or sell the asset at the agreed price. The power involved in currency options is the power to buy and sell currency or foreign exchange
understanding these two, let's look at the foreign exchange risk of importers and exporters. It mainly refers to the risks caused by foreign exchange fluctuations. In other words, if I export 1 million US dollars today, the exchange rate will be 6.5 RMB for 1 US dollar; But maybe the money won't arrive until the day after tomorrow. At that time, the exchange rate will change to 6.30 RMB for 1 US dollar, so I lost 200000 RMB. In fact, the risk also appears in the difference between the signing of the contract and the delivery date. If you have a long time between signing a contract and paying for delivery, interest rate fluctuation can always bring risks
for this reason, forward contracts and currency options come in handy. If: now I want to export a batch of goods, but the payment for goods - 1 million US dollars will be received in three months, so I signed a forward currency contract with one of my counterparties, and agreed to sell 1 million US dollars at the price of 6.45 RMB: 1 US dollar, that is to say, no matter how the exchange rate changes in the future, as long as the other party does not breach the contract, I can use this exchange rate to lock in the RMB that can be exchanged for one million US dollars in the future. However, if the appreciation of RMB is generally expected in the market, the RMB dollar exchange rate of forward contract is lower than that of spot contract
the same is true for options, except that you have to pay a sum of money in advance. At this time, the higher the exercise price agreed in the contract, the more money you have to pay. The forward price is fixed at one time point. As an exporter, you buy a US dollar put option (or RMB call option, because you want to exercise when the US dollar falls or the RMB rises). If the US dollar falls, you choose to exercise to sell; If the U.S. dollar rises, you will not have the right to go directly to the spot market for RMB. So you lock in the foreign exchange risk
for importers, it is similar to the above discussion, except that the forward contract is to sell the local currency and buy the foreign currency; The option should choose foreign currency call option or local currency put option
the level is limited, I hope it can help you. The hand is slow. I hope it's too late~
7. In finance, hedge refers to an investment designed to rece the risk of another investment. It is a way to rece business risks while still making profits in investment. General hedging is to carry out two transactions which are related to the market, opposite in direction, equal in quantity and balanced in profit and loss at the same time. Market correlation means that there is identity between supply and demand in the market which affects the prices of two kinds of goods. If the supply and demand change, it will affect the prices of two kinds of goods, and the direction of price change is roughly the same. Opposite direction refers to the opposite trading direction of two transactions, so that no matter what direction the price changes, there is always a profit and a loss. Of course, in order to balance the profits and losses, the quantity of the two transactions must be determined according to the range of their respective price changes, so that the quantity is roughly equal.
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