🛡️📉 After my blowout, I learned hedging. If you hold 1 BTC spot, expecting volatility, a small short futures protects value.
At BTC $60,000, protect 10% by shorting 0.1 BTC futures. If BTC drops $1,000, your spot loses $1,000, but your 0.1 BTC short gains $100. A useful buffer.
Watch funding fees. A $6,000 short (0.1 BTC) at 0.01% every 8 hours costs $1.80 daily. It adds up.
Hedging is smart during uncertainty or to lock in unrealized gains, giving time without selling spot.
When NOT to hedge? If spot is small, or you're a long-term HODLer unfazed. Avoid flat markets where funding eats profit, or selling spot soon anyway.
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