Using CirclePay to SAFELY short (hedge) Bitcoin: +1% from the get-go

capoeira

legendary

Activity: 2413

Merit: 1003

what are the fees/spread?

BurtW

legendary

Activity: 2646

Merit: 1137

All paid signature campaigns should be banned.

If I send 1 BTC to my Circle account, it is converted to USD. If the price of btc is $715 my circle account has $715.

If btc price rises to $730 I still only have $715 at circle (usd).

Now, I don't have enough money to buy 1 BTC back in my circle account.

Then the btc price rises to $750.

OOPS, I shorted when I should have been long. I cry myself to sleep at night.

btc4peace

sr. member

Activity: 445

Merit: 251

pHp DeV

I wrote a free guide for this at http://BitcoinStrategy.org but wanted to share here what I found.

If I send 1 BTC to my Circle account, it is converted to USD. If the price of btc is $715 my circle account has $715.

If btc price drops to $700 I still have $715 at circle (usd).

Now, I send 1 BTC back from circle to my btc wallet at coinbase. $700 is deducted from my Circle account leaving $15 while at the same time I replaced my 1 BTC.

Guide at http://bitcoinstrategy.org

Topic: Using CirclePay to SAFELY short (hedge) Bitcoin: +1% from the get-go (Read 344 times)