Hedging

What is Hedging in Cryptocurrency?

By hedging, a trader seeks to manage market volatility so that they can hold onto a crucial holding for a longer period. If you intend to keep onto a bitcoin holding for a longer time, hedging it makes sense. There will be instances when the market moves against you, for instance, if you plan to hold onto a stake in Bitcoin for the foreseeable future. In that instance, you might purchase a hedge to offset any potential losses from holding bitcoin. This enables the trader to maintain such assets while averting substantial losses.