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How To Secure Your Bitcoin Cash From Volatility

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Written by   103
3 months ago

After the intense volatility of crypto currencies, the great market crash in 2018 taught a tough lesson to several . the worth of crypto currencies had vigorously fluctuated within two years. At the time, many started considering crypto currencies to be a highly unstable market filled with uncertainty and speculation.

As time evolves, means have been seeked to control the risk of such Volatility which prompted developers within the community to build solutions. Recently one of such solutions was announced on Bitcoin Cash, DeToken, a DeFi that uses Anyhedge's protocol to hedge and long Bitcoin Cash.

Volatility comes one's a coin gets to its peak value at a person then goes back down. For Instance, you happened to buy 1 Bitcoin Cash at $500, then the price suddenly gets down to $450. Volatility here has made you lose $50 at that period. For such occurrences to be controlled on Bitcoin Cash, here's a guide to how to do so.

How To Control Volatility With DeToken

What Is DeToken?

DeToken is a Decentralized Finance system that offers a trustless (blind oracle), limitless and secured access to peer to peer financial products across the world. The platform can be used to hedge an asset prior to a bearish trend or to Long an asset prior to a bullish trend.

DeToken features two contracts that lasts for 24hrs and also a non-custodial web wallet inwhich you can easily import an existing BCH wallet or create a new one.

Controlling Volatility With DeToken

Using the Hedge feature on DeToken, one can easily set an Hedge over his/her assets for 24 hours. The contract protects such asset from volatility retaining the Value of the asset at a fixed amount.

For Example: If a user hedges $1000 worth of Bitcoin cash at 2.0 BCH when BCH is $500, if the market gets volatile, let's say BCH is now at $450, the worth of the coin remains at $1000 while the value of the coin increases to 2.4BCH or so.

On the other way round, If the coins worth increases to $550, your $1000 remains intact and the coin reduces to 1.6 BCH.

Advantages

DeToken allows a contract for a period of 24hrs which means that your asset gets Secured from high volatility occuring within the period of contract.

Trustless: Implementing a blind oracle, you do not need to trust DeToken. You can get record of all your Transactions on the BCH BlockChain.

Disadvantages

During this period of contract, you can not make transactions with your assets until the contract expires.

You can not terminate an ongoing contract. Once you enter into a 24hr contract with DeToken after Registration, you can not terminate such contracts until it gets to expire at it's estimated time.

Getting Started With DeToken

Step 1: Using your web or mobile browser, visit https://detoken.net then tap/click on get started.

Step 2: Create A Wallet, here you can create or import an existing wallet using your seed phrases.

Step 3: Read and agree the terms of DeToken before you continue.

Step 4: Fill in some personal details, these include your name, email address and password. Note: These details will grant you access to your DeToken wallet and must be kept private.

Step 5: Write down your Seed Word. The seed word is like a private key which gives access to reset your password, import your wallet anywhere and to your funds. This too must be kept private.

Step 6: For extra Security, You can choose to authenticate your DeToken wallet. Whenever you sign in to Detoken you will need to enter your 2FA code generated using a 2FA application.

Step 7: Confirm Your Email. A confirmation link will be sent to your email address, click on the link to complete your registration process.

Step 8: This is the final step. After email confirmation, you'll be taken back to a login page. Fill in your details and log in.

Read Also

3 Legit Ways To Earn Crypto Passively For Beginners

How To Track, Adjust Bitcoin and Bitcoin Cash Transaction Fees

How To Create An SLP Token


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Written by   103
3 months ago
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Comments

It seem I would like to know more about this 08106641647

$ 0.00
3 months ago

Worth to read this!

$ 0.00
3 months ago

How to calculate profit if you use detoken as long? 50$ worth of bch for example.

$ 0.00
3 months ago

If you're longing your $50 worth asset on DeToken, It's based on the speculation that the price will soar higher. If you longed when BCH was $500, if it soars to $600, your $50 worth BCH becomes $60 or so.

$ 0.00
3 months ago

So you say it will always depend on how high the price will get. If I longed when BCH is 500 then it soars up to 505. Then I can get just a little gain. I think this anyhedge is just for big investor. Not for us who don't have any much capital.

$ 0.00
3 months ago

Good article!

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3 months ago