In the recent volatile market of Bitcoin, altcoins generally performed poorly. What we are going to talk about today is: how to lock in profits without selling and protect your positions from losses.
Here I would like to share with you a simple trick that can help you lock in net asset value, avoid losses, and even get additional small gains even in an unfavorable market environment when holding a large amount of Bitcoin or other altcoins.
This trick is [Hedging Strategy] 👇👇👇
1⃣️ In contract trading, choose the coin-based contract of BTCUSD, and make sure you use the "coin-based contract".
2⃣️ Set the leverage to 1x, so that there is no risk of liquidation or loss due to high leverage.
3⃣️ No need to set stop profit and stop loss (because only 1x leverage will not cause liquidation), choose to open a short position, and it's done!
In this way, you can ensure that the value of your position is always consistent with the price at which you open the position, thereby avoiding profit drawdowns due to market fluctuations when holding a large amount of Bitcoin or other altcoins.
In addition, in the Bitcoin market, the funding rate is usually positive, which means that every 8 hours you can get additional funding rate income by holding short orders, thereby getting additional income while locking assets.
This method is suitable for investors who are bullish in the long term or want to hold high-quality assets such as Bitcoin for a long time. Of course, if you are confused or pessimistic about the market in the short term, this is also an effective asset protection strategy.
And not only Bitcoin, other currencies such as $ETH , $SOL , $XRP , as long as the exchange provides currency-based contracts, can use this method to operate.
In addition, if you want to participate in the Launchpad project, but are worried about the price drop of the tokens such as BNB you invested in, you can use it to hedge when investing in Launchpad to ensure that your investment is not affected by market fluctuations.
Have you learned it?
