Do you want to use Hedge on Detoken but still in doubt on how to use and how to earn?
I created this article to answer almost all the concerns regarding hedging. I will do my best to explain thoroughly and simplify everything about hedge positioning😁.
What is Hedge?
It is a type of position wherein we can lock-in the dollar value of our Bitcoin cash. As we all know that crypto is very volatile, on Hedging we can escape that volatility and reduces the risk of losing.
If you're new to this article and want to know more about Detoken, please visit my previous articles here:
Market Volatility
Crypto market is so volatile or that in a matter of seconds, price can jump or dump dramatically. Advantage of volatility is we will gain faster and bigger, equally the disadvantage is we can lose too🙄
When Hodling your BCH in your wallet, the BCH amount is stable while the value of it moves.
For example I have 1 BCH in my wallet right now and i just hodl them. The current price is at $500. So it means I have 1 BCH worth $500.
Then after few minutes the price became $450, My BCH in my wallet is still 1 BCH but the value became $450.
So what is the relation of this in Hedge?
In hedge, as I said our usd value is being locked. So it is the opposite of what I have mentioned above.
Instead of the BCH itself is being stabilized, the USD value will be stabilized and the BCH amount will adjust according to what the price is.
I will now cite an example regarding this.
For Example:
Given:
The current BCH price is $400.
We have $10 usd (0.025) worth of BCH in our wallet.
*We entered our hedge position using our $10 (0.025 BCH) with an entry price of $400.
After 24 hours or 144 blocks, this happened:
SCENARIO 1: BCH price drops
Our position is now closed and from $400, BCH price decreases to $300. Therefore the initial margin of $10 will still become $10, no change.
But the amount which is from 0.025 will become 0.033.
Now I guess you see the difference, your 0.025 is now 0.033 in your wallet, Both are $10 usd in value.
The good thing about it, the current price which is now $300 will, for example increased to $400, So what you think will happen to your 0.033 bch?
The answer is your $10 will become $13.2 🥳
You earned $3.2 in just approximately 24 hours! 🎉
SCENARIO 2: BCH price increased
What if the BCH price increased after 144 blocks? For example from our initial entry of $400 it became $500.
Our initial balance of $10 is still $10 after the position settlement.
But the amount differs, from 0.025 to 0.02.
You will say that your balance decreased. Well that's true, the bch amount was decreased by 0.005. Technically you loss 0.005 bch in that current price.
But in reality you did not lose because your balance is still $10, because of the value of bch is in $500. 🎉
Here is my visual representation of the example above:
In my drawing above, Red arrow is the scenario 1 and Green arrow is the scenario 2. Either increase or decreased, the $10 margin is retained while the BCH value is changed depending on which direction the BCH price goes. 😉
Another benefit of Hedge
Every position we make, we will earn an additional premium. This funding fee is added to our balance. Here's an example from my current hedge position
How to maximize your earnings?
Now to maximize our earnings with Detoken, I will suggest a simple strategy. Take note, this is just my idea and not a financial advice. You may or may not use it and please do your own research regarding basics of trading and how to manage your risk.
My strategy
To make the most out of hedge, I just thought that we can place Hedge position WHEN the price of BCH is higher. And place our Long position when the price is lower.
How to know if the price is lower or higher? We need first analyse the charts and predict the price movement. Learn first the basic of support and resistance and also the chart reading to better understand the analysis.
Our main goal is to achieve the scenario 1 in my example. We want to have a price drop, why? Because in that way the BCH amount will increase.
And the good thing about it if ever it will not drop? The scenario 2 will cover your earnings, still not a loss.
So what's the purpose of long here, If you have a strong prediction that BCH really on bull run or will increase, place long and together with hedge.
Take note: Long is still riskier, you may lose your BCH here if not properly entered. Long has a leverage of 3x, not that much risk but still it cam deduct a significant amount of bch if ever the price decreases.
So that's basically my strategy here.
Either way if you're just Hedging alone, you still earn and avoids volatility. The good thing is even you skipped my suggested strategy and just place hedge position anywhere you like, you still win the trade.
Take note that scenario 1 is better than scenario 2, But both scenarios are all in our favor.
Did I explained it well? Any questions or clarifications, feel free to ask. I will answer it as best as I can. 😁
Small gain matters, it's still a gain. Little by little, our goals in life will be achieved. Patience and pereseverance are our key to success. >>p1sce5
Are you ready to Hedge with Detoken?
Thanks for reading🎉
Photo used in this article is hand-drawn by me.
Sure, just take note that scenario 1 is better, so when hedging, treat it like you are shorting. Good luck😊🍀
To be honest the explanation is not clear to me.
To me it said I could not hedge because the bch in the wallet is not enough but 'long' was possible wich doesn't make sense to me if the fee is higher.
Read my previous article, i mentioned there the minimum to start a position.
For hedge it should be at least 5usd and above. For long, at least 2 usd ☺️
I am reading through them
Ok😊 If you need more clarification, feel free to ask. Thanks
I will contact you. Thanks for so far. 👍
You're welcome👍
Now i get it.. Hndi rnganda mag hedge kpg pataas ang price kc lilit ang amount kaht pa same parn ang value.. Pro my minimum pla dun. 😅
Opo.. Mas maganda mag hedge if predict mo pababa. Same as short. Pero mas better sa short kasi ung usd value is locked. Kaya talo ka sa bch amount, panalo ka pa dn sa value hehe.
Thanks po sa pagbasa and upvote☺️ Goodluck🎉
So maynka hedge kb ngayon? For bch lng sya noh?
Yes po, haha 15, 12 at 15 🤣 Opo for bch lang sya, Sa pagkakaalam ko first defi to gamit ang bch🥳
At nag iiba iba ang minimum 😢
Ung minimum sa hedge po naglalaro lang between 0.002 to 0.005 bch
Ay ung sinsabi kong 15 at 12 ung hedge position ko now, dba tinanong mo po. Hehe
I know.. Yung minimum tlga tinutukoy ko.. Nagdagdag ulit ako 2 pra maka position ako.. Pro feeling ko tataas yung bch after 24 hrs 🤣
Aah. Di ka makaentry sa hedge? Kinulang ka po?
Feeling ko dn po kaya naka long ako sa binance then hedge dito 😆
Ilan tp mo sa binance.. Nka long dn ako.. Magaling kna cguro magbasa mg TA charts
Bihira ako mag TA. basic lng alam ko ee. More on price action ako e. Scalp lang ako, kada entry ko TP agad ako sa plus 10 ng price.. Kunwari entry ko 440, sa 450 tp ko agad. Hehe😁
Ganun ako lalo na maliit margin.. Kc minsan bigla bagsak ng price. Kung nka long liquidate agad
Pag mataas ung lev oo liqui agad haha. Sakit sa ulo nun haha
Oo kahit maliit ung pagkaposition, ung tp 2usd minsan mas mataas. Dpende sa margin 😁
Tig 5 lng margin ko. Ayoko sumugal ng malaki
Ok lang po yan, observe mo nalang din muna ☺️
@bbghitte @bbyblacksheep tagging you ladies. Sabi ko sa inyo mamahalin ko tong detoken eh.
Basahin ko muna ng buo, nauna na ko magcomment lol (at parang di ko sila natag lol)
Hahahaha, kaya nga lakas ng influence ni @Pisces-jr15! Pero happy ako sa detoken compared sa iba-ibang napasukan ko..haha
Ang galing magturo ni @Pisces-jr15. Will try to read his other articles about Detoken. Pero question, if ganun na nagearn na like sa scenario2, what is the best thing to do with the earnings? Hedge it again or transfer to Nexo or back to bchwallet?
Salamat po☺️
To answer the question, best thing to do is to hedge again, pero nasa discretion mo din if gusto mo na itransfer sa wallet ung earnings. Bale based sa mabubuo mong strategy yung gagawin mo sa earnings
Ah ganun pala yung meaning ng hedge :) kung kailan mo nabili assumed yun as the zero value:)
Opo, locked ung usd value nya until matapos ung 24 hours or 144blocks😁
Medyo mahal kase yung sa hedge! Haha. Eh nakakatakot maginvest. Salamat isa kang alamat!
Oo mas mataas minimum nya e. Sundan mo din ung pagback up ng seed words mo para sa wallet mo. Non custodial wallet naman sya kaya safe naman.
Natakot dn ako maginvest ng una, haha ok naman background ni Detoken 😁
Kaya nga so im confused rn gusto ko na ba tumaas value ng bch o bumaba?hahaha bumili ako kanina ng position sa long at 409$ value :) itry ko kung pano ba gumagana haha :)
409? Safe ka pa haha, ilang blocks pa?
Haha kahit gusto natin tumaas or bumaba, may sarili syang galaw haha. Kaya sabayan nalang😁haha
40 blocks na lang haha excited na ko sa result haha
Nice konti nalang haha halos sabay pala tayo, may 44 blocks isa kong hedge hehe
Tapos ayun nagtry na ako
Nabasa ko lang sa noise.cash tas recommended article mo haha :)
Ay narecommend pla article ko? Wow. Hahaha salamat☺️
So parang High and Low lng din in terms of trading. Much bigger earnings if BCH will low? Hedge for Higher and Long for Lower Tama Kaya ako? mukhang low naman ata Yong Long ko😅 will see later 😇
Based sa observation ko, mas profitable if nag hedge ka tapos nag low ung bch. Profitable din if tumaas, pero mas ok if bumaba kasi pag bumaba, mareretain ung usd value mo, madadagdagan pa ung bch amount mo if umakyat na uli sya😁
so much better kapag lahat ay low, kaso $4 sa hedge haha $2 Ang napasa ko nasa Long pa let's see mamaya madaling araw anong result. nakakakaba pala si Long haha.
Opo, if bumaba mula sa entry price mo. Pero if tumaas, same pa din nmn usd value.
Haha nkakakaba tlga pag long, lalo di mo pede iclose manually haha
okay Lang Yan Charge to experience Sabi nga nila 😇
Okay natapos ko na ulit. Thank you so muchhhh haha. Kaya ko nagtataka bat nadadagdagan yung balance ko, kc pala mas mataas ko nabili eh mas mababa BCH..omg.. i love detoken na talaga. haha. Good job, ang linaw
Haha. Yun o, buti naman nag earn ka na😁 The best na tong detoken para sa ating mga BCH haha.
Salamat😊
akala ko lang pala. pula silang lahat hahahah biglang tumaas..pero keri lang.. ngtransfer ako ulit $13 hahahaha. at ng hedge ulit 🤣🤣🤣ito na naman ako sa pagririsk haha
Oo pula tlaga lalabas. Kasi mababawasan ung bch amount. Pero ung value same pa dn hehe.
Wooow.. 13 na hahah Lumalaban haha
una $2, then $8, then $13 ngaun hahaha. di ko alam if may magandang maduudlot pgiging risk taker ko pero, kung di ngaun kelan? wbahahahah
Ahm haha wow laki na aa, take note mo ung nadepo mo at ung magiging total mo para makita mo if nagearn ka tlaga haha
Kakapasok ko lang now ng 15😂 Di ko mapigilan hahaha
dyan pa ko mejo di ko alam pano pero sa 23 na pinasok ko, ang total balance ko ngaun eh 25.50 haha.
ay ibaaaa.. worth it kasi kesa manghinayang sa interest na mwawala if magpricedrop
Haha.. Ok n dn. Tumubo dn pla. Good haha
Oo worth it.. Kesa nakatambay sa wallet.. Dba. Haha. Tska less stress sya haha. Di na ko nakapagfutures tuloy😂
true. hahahahahah pahinga ka muna sa futures. hig reward hi risk din. chumillax ka daw muna haha
Kaso may nakasalang pa ko haha, pero di ko na dinagdagan haha Nagaabang un ng pumping e haha😂
Nice write up
Thank you, ☺️
Grabi napag aralan mo na agad 😱. Malinaw sya malinaw, at ngayon nga gusto ko na tuloy mag try 🙄, bat kasi ginalingan mo masyado 😱
Haha minadali ko nga ee, para isahang explain na lang hahaha jk
Sakto lang nmn ee.. Thanks😁
Hedge na 😂haha.
Di halatang minadali, nag effort ka talaga dun sa drawing haha
Haha tabingi nga e haha. Di ko na lng inulit haha.
Ayos na yan mahalaga naiintindihan.
Sabagay. Haha😆
Ahhh gets ko na hahah. Salamat sa article mo.
Ang galing mo, ako di ko na gets pero ngayon gets na. Salamat uli ☺️
Salamat naman malinaw at may natulungan ako. Thanks sa pag babasa. Good luck sa pag hedge😁
Lahh nasayang $0.05 ko kasi mag upvotes sana ako via qr code haha kaso di gumana.
Anong nangyari, sa qr?
Oo kaya nga nag deposit nalang sko sa wallet ko dito para maka tip 😂
Ayy. Haha. Salamat 😊
Welcome ☺️
Thank you for this. I haven't tried Hedge before but will surely do once I have enough fund. I only deposited $4.04 from my bch jolly and lazy fox earnings and $0.11 on read.cash. HEHEHE. But as soon as I have enough, I will definitely try this.