[Bitrue] Bear Market Trading Tips - How to Hedge
To avoid losing out during a bear market, Bitrue is bringing you tips to hedge for a better future!
First of all: what is hedging? Literally, it is an act of temporarily replacing physical transactions with futures transactions in order to avoid or reduce losses from adverse price movements.
If the current market price of 1 BTC is $20,000, then we double the short $20,000 bitcoin through Futures, when the price changes, the following results will appear
- If the price falls to $10,000, the net assets of the Futures account is 2 bitcoins at this time. The total market value is still $20,000, and there is no loss.
- If the price rises to $40,000, the net assets of the Futures account is 0.5 bitcoins at this time. The total market value is still $20,000.
Therefore, with Futures, regardless of whether the price of the underlying object fluctuates upward or downward, there is a chance to profit with long or short positions, so you can reduce the losses from spot trading and offset risks at the same time.
Here’s how to complete a Futures trade on Bitrue:
- Head to the Futures page
Here you can see all the Futures options available to you. Choose your preferred pair.
- Enter the details of the trade you wish to make, including the amount and position, then confirm your purchase.
Hedging can be done on all Futures pairs on Bitrue. Please be sure to only invest an amount that you are willing to lose, as all cryptocurrency transactions carry an inherent risk.
Additionally, we currently have a special event ongoing,click here to register now. In this event you will have the trading fees for your Futures trading waived, and you’ll also be entered into prize drawings to receive a portion of a 1,000.000 USDT trial fund prize pool! Give it a try now!
The Bitrue Team
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