How to hedge risk in a cryptocurrency crash market
At yesterday's G20,
cryptocurrencies, for now, have little impact on finance,
and a statement was issued that they want to monitor the technology.
They said they would keep an eye on the technology.
Cryptocurrencies still account for only a few percent of GDP,
and it is not evidence that the world as a whole is showing interest
in what technology will look like.
In response to that news, cryptocurrency
prices rose roughly 5% to 30% overall.
Even Governor Kuroda's remarks include
that consumer protection is important,
and that it could be positive financially as well.
There are also comments about taxes...
Cryptocurrencies are considered miscellaneous income
and even compared to overseas standards,
they are said to be quite high.
Now,from January 2018,
even in a cryptocurrency market that continues to fall
we will introduce ways to aim for profit as a risk hedge.
This is described at
http://bitcoin-newstart.com/bitcoinfx-sell
In the previous email,
I mentioned a little about margin trading (Bitcoin FX)
as a way to start with a "sell" position.
In normal spot trading,
you buy only, but with margin trading you can
also enter from the selling side.
Therefore, in the mid- to long-term, holding positions in cryptocurrency
and during a market that surged abnormally at the end of December,
you can hold both long and short positions
simultaneously.
Then, even if ordinary cryptocurrency assets
decline in value, the short positions will generate profit.
Ultimately, by making a profit from selling, the mid- to long-term
cryptocurrency assets can be held with the expectation that when prices
rise, profits will be earned.
This is a method.
Margin trading is said to involve funds leveraging far beyond ordinary capital
and is risky,
but
if you reduce the leverage to 1.1x or approach spot-like conditions,
the impact is not significant.
It is a method that can be used precisely because the market repeatedly experiences large surges and crashes.
However, since yesterday's G20,
the cryptocurrency market has been on an upward trend.
For now, I think it is better not to use it,
but as a risk hedge in the future,
opening an account with, for example, Bitcoin Bank and
small funds to practice a bit
can enable you to respond quickly to market movements.
Now, here is an article on how to hedge risk even in a crash market ↓
