Thanks, I understand it better now. Just one question, doesn't owning other coins, like ETH, Dash work as an Hedge aswell? Even better then the Futures, because you are going to profit in the long run anyway. I don't understand the big necessity for bitcoin futures. With corn, you only have that, corn, but with cryptocurrency there are a bunch of them competing directly with each other, one goes down other goes up. Example: Bitcoin Gold and Bitcoin Cash versus Bitcoin.
I don't know, this Futures thing, begins to bring out the conspiracy theorist in me.
You are viewing a single comment's thread from:
It can definitely be a complicated matter. Other currencies aren't exactly a hedge since they are also subject to volatility, whereas the Futures Contracts allow you to lock in whatever profit you have at that moment in time, that is guaranteed to be at least that amount in the future. There is still a risk if the price goes up, but again that is why these markets are for the big guys that can sustain the losses that are possible if things do go that direction.