Topic: Bitcoin Hedging Platforms and Strategy (Read 161 times)

Most of the hedge funds that I’ve seen online are not really meant for people who don’t have huge amounts of money to invest. They’re mostly meant for institutions and big investors that have over 100 thousands of dollars to risk in them.

And of course if you took notes of what I said there, I used the word “risk” because hedge funds are also a lot of risk due to the fact that they are seeking a short term profit. When you hedge your funds or cryptocurrency, it is a means of managing your risk, and it doesn’t really eliminate the risk that are involved in this kind of investment.

To hedge bitcoin, you'd simply short it. Or invest in an asset that is likely to rise in the event that bitcoin falls.

There isn't much research or information published on this topic, as far as I know. Most crypto investors are long term HODL or day traders looking to do business in altcoin bull markets, rather than short.

I'm not certain how one would go about it. One potential prospect to hedge bitcoin could be quantum computer stocks. Bitcoin has dropped significantly on the news of google achieving "quantum supremacy" if I remember right. There is a precedent in historical terms for it being a thing. One problem with that is crypto assets being so new the precedents for how to trade it properly are shifting.

When it was first announced that bitcoin would be forked -- I think there was a big drop in BTC value. The next fork triggered a smaller decline. The pattern continued along a trend where BTC drops in price gradually became smaller with every fork announcement. Quantum computing could be similar. Google's claims of quantum supremacy triggered a drop. The next quantum computer "breakthrough" triggered a smaller decline. The trend continued, until there was news of china achieving a quantum computing breakthrough only a few days ago without any visible reaction from BTC.

Its difficult to isolate the market movement of a bitcoin downtrend, in a way that makes for a good long term hedge.

Tell us more what you want to achieve and we will think about solution. The simplest one ... perfect for unexperienced investors .... is stoploss on spot (i guess you will not avoid taxing transaction with options).
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We would like to hold onto the BTC and use futures, options, perpetuals to hedge on a downturn and maybe make some money at the same time.

If you have some experience doing this and good strategies on what to buy and what to look for that would be great.

I guess there are tax implications when trading Derivatives/options too.


Tell us more what you want to achive and we will think about solution. The simplest one ... perfect for unexperienced investors .... is stoploss on spot (i guess you will not avoid taxing transaction with options).

FTX just bought ledgerx a few days ago and luckily available to americans now

there are tax implications when selling bitcoin


appreciate any strategies in hedging and experiences thank you

You can do so through FTX[1].

But really, if you aren't an active trader, and if you're overweight in bitcoin and might need some money some time in the future, then just sell some. You don't need to make it complicated.

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https://ftx.us/

Do you guys suggest options / puts or other methods of hedging downside on bitcoin?

Which platforms are you using and do any of them work for americans?

thanks for any guidance