Hedging against crashes | Bitcointalksearch.org

XavierSPL

newbie

Activity: 9

Merit: 0

Quote from: jmlona on January 17, 2018, 07:47:30 PM

You hinted on it with USDT and you should really look in to it some more, in theory it is pegged to USD. If you foresee a crash coming you sell up for USDT and then either buy back later or sell your USD for USDT. It's not an exact peg and sometimes the price goes to about .98 to the dollar but it's pretty close.

Thanks, So, I would do this to basically keep my money in the markets and avoid xfer and withdrawal fees to jump ship?

Quote from: GrannyC on January 17, 2018, 07:51:34 PM

You now have bitcoin derivatives, so you can actually assume just the level of risk that you want, and pay a price for transfering the rest. I think that some of those derivatives can be bought with not much money.

I'm not a financial guru by any means, but futures and derivatives scare me, not so much for me individually, but for the market itself - housing bubble comes to mind... Roll Eyes

GrannyC

member

Activity: 224

Merit: 10

Quote from: XavierSPL on January 17, 2018, 07:45:09 PM

As I'm new to this, I've been trying to figure this out and since this is my first "crash" I'm not so sure I would repeat my present strategy. I saw the dip in BTC coming and felt certain it would suck down the whole market so decided I'd move everything into what I felt were coins that might maintain a degree of stability - which in my case, were ETH and LTC.. I can't say I'm happy with the results of that decision but relatively speaking it certainly could be worse.

I'm still not sure how to use USDT but have read about that, and of course moving everything to USD in Coinbase is an option. Anyone have some tips on how to best protect and hedge against losses when the market turns?

You now have bitcoin derivatives, so you can actually assume just the level of risk that you want, and pay a price for transfering the rest. I think that some of those derivatives can be bought with not much money.

jmlona

member

Activity: 279

Merit: 16

Quote from: XavierSPL on January 17, 2018, 07:45:09 PM

As I'm new to this, I've been trying to figure this out and since this is my first "crash" I'm not so sure I would repeat my present strategy. I saw the dip in BTC coming and felt certain it would suck down the whole market so decided I'd move everything into what I felt were coins that might maintain a degree of stability - which in my case, were ETH and LTC.. I can't say I'm happy with the results of that decision but relatively speaking it certainly could be worse.

I'm still not sure how to use USDT but have read about that, and of course moving everything to USD in Coinbase is an option. Anyone have some tips on how to best protect and hedge against losses when the market turns?

You hinted on it with USDT and you should really look in to it some more, in theory it is pegged to USD. If you foresee a crash coming you sell up for USDT and then either buy back later or sell your USD for USDT. It's not an exact peg and sometimes the price goes to about .98 to the dollar but it's pretty close.

XavierSPL

newbie

Activity: 9

Merit: 0

As I'm new to this, I've been trying to figure this out and since this is my first "crash" I'm not so sure I would repeat my present strategy. I saw the dip in BTC coming and felt certain it would suck down the whole market so decided I'd move everything into what I felt were coins that might maintain a degree of stability - which in my case, were ETH and LTC.. I can't say I'm happy with the results of that decision but relatively speaking it certainly could be worse.

I'm still not sure how to use USDT but have read about that, and of course moving everything to USD in Coinbase is an option. Anyone have some tips on how to best protect and hedge against losses when the market turns?

Topic: Hedging against crashes (Read 74 times)