Whats the way to hedge Bitcoin against dollar?

nizamcc

legendary

Activity: 1218

Merit: 1007

Quote from: European Central Bank on July 02, 2016, 08:34:44 AM

Margin, especially those levels, is the fastest way to get wiped out and raped at the same time.

Even if you yourself get it right there might be a bitfinex type failure or you migh have to swallow socialized losses.

Plan again or weep.

Right. Trading bitcoins at such huge leverages like 20 - 100x would end up in losing everything because the volatility of bitcoin markets is much more compared to any currencies or metals in the world. Trading it like buying low and selling high would be much preferable instead of going deep and trying to do it forex style.

European Central Bank

legendary

Activity: 1288

Merit: 1087

Margin, especially those levels, is the fastest way to get wiped out and raped at the same time.

Even if you yourself get it right there might be a bitfinex type failure or you migh have to swallow socialized losses.

Plan again or weep.

electronicash

legendary

Activity: 3178

Merit: 1054

if i understood him right he wants to profit by dumping the coin when it reach a certain value from the okcoin exchange.
its a good idea to profit but that is if btc market trend will indeed will be bullish this halving.
but since its still uncertain, you might just be in trouble in the end and that you'd have to pay the price.

bitkilo

legendary

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Merit: 1010

https://www.bitcoin.com/

Unless you are earning bitcoins directly from your job and dont have to purchase them just to repay a bitcoin loan then borrowing some when needed can be helpful.

I don't think i would borrow if i didn't already get paid in bitcoins, not much use having to buy em just to repay a loan with the fees in between.

Patatas

legendary

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Providing AI/ChatGpt Services - PM!

Quote from: jpso on July 01, 2016, 08:09:27 PM

Hi There,

I'm wondering to get some to bitcoins borrowed and pay interest in bitcoin. But since I need the money in fiat, I'm wondering what are the options to hedge my bitcoin position using just margin.

My first ideia was to open a 20X long position at OKCOIN Future. In this case, I just need 5% of the capital to protect my position. if the bitcoin price increase, the future will also increase and I'm protected in certain way and less exposed to volatility. What are other ways to hedge?

There are any OTC place where I can buy/sell Hedges?
About BitMEX? It seeems they have a future with 100X leverage. Do you recommend them?

I'll be glad with show me other options...

1.Bad idea to borrow bitcoins and convert it into fiats,you already lose a marginal amount of hedge funds in the process.

2.Why don't you try to set your margins manually instead of involving 3rd party exchanges ? To be honest,most of such places giving you false promises of 100x 200x hedge are going to get dumped when the bitcoin price rises.Be careful.

xhomerx10

legendary

Activity: 3808

Merit: 7912

wrong section - try trading discussion and/or lending once you figure it out.
I think it is never a good idea to borrow bitcoin; especially if you need fiat.

jpso

newbie

Activity: 1

Merit: 0

Hi There,

I'm wondering to get some to bitcoins borrowed and pay interest in bitcoin. But since I need the money in fiat, I'm wondering what are the options to hedge my bitcoin position using just margin.

My first ideia was to open a 20X long position at OKCOIN Future. In this case, I just need 5% of the capital to protect my position. if the bitcoin price increase, the future will also increase and I'm protected in certain way and less exposed to volatility. What are other ways to hedge?

There are any OTC place where I can buy/sell Hedges?
About BitMEX? It seeems they have a future with 100X leverage. Do you recommend them?

I'll be glad with show me other options...

Topic: Whats the way to hedge Bitcoin against dollar? (Read 594 times)