As Bitcoin investors, we are right in the middle of one of our profitable times. But we can never be sure about the consistency of current uptrend, considering a similar scenario when price had hovered around 750, but fell right after the hack of BitFinex. While many traders had lost a big chunk of their hard-earned money, some were not even able to liquidate their Bitcoin assets. This is more than a mild inconvenience especially if the price falls rapidly.
Over the recent years, First Global Credit has backed the idea of minimising such risks with its Collateral Currency Switch Service. The service, as the name suggests, enables users to quickly move in and out of Bitcoin markets with just few mouse clicks. So, in case of wrongful events, traders can utilise First Global's service to move their BTC holdings into fiat currency with a view to then reverse the transaction after the plunge has abated. We currently offer five different fiat currencies: USD, GBP, CHF, AUD, or JPY.
This hedging approach spreads risk not just across markets but also across multiple brokers and exchanges. By splitting transactions we are able to keep counterparty exposure to a minimum. This reduces the risk both in terms of duration (length of time funds are held with a counterparty) and extent (no counterparty exposure exceeds our available in-house capital.) This allows us to take on the counterparty risk on behalf of our customers on the transaction.
This thread is always available to answer your queries and questions. Meanwhile, you can open a new account with us at https://www.firstglobalcredit.com/Login
Topic: Collateral Currency Switch Service for Bitcoin to Minimise Counterparty Exposure (Read 246 times)
November 03, 2016, 09:18:25 AM
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