October 21, 2020

HEDGING IN CRYPTOCURRENCY INVESTMENTS OR HOW TO PROTECT YOUR CRYPTOCURRENCY PORTFOLIO ??

In order to increase the profitability of your investments in cryptocurrency or keep them, there is such a tool, which is called "hedging". Let's use our fingers and examples to figure out what it is and how to apply it.

Let's say you understand that you want to diversifyyour portfolio or invest in something interesting. Moreover, in the history of cryptocurrencies have shown rapid growth, and you, as "the smartest investor", also want to earn millions J.

You have many options for choosing a cryptocurrency, for example: Stellar (XLM) (quotes with a forecast are taken from finprophet.com).

HEDGING IN CRYPTOCURRENCY INVESTMENTS OR HOW TO PROTECT YOUR CRYPTOCURRENCY PORTFOLIO ??

But if you take a look at the charts of cryptocurrencies, the yield is relatively small.

It is more profitable to look towards increasing profitability as follows.

HEDGING IN CRYPTOCURRENCY INVESTMENTS OR HOW TO PROTECT YOUR CRYPTOCURRENCY PORTFOLIO ??

You can choose a cryptocurrency for which you can buy tokens in the future. For example, the picture above shows the Ethereum (ETH) cryptocurrency.

Having analyzed the previous year, you can see that the cryptocurrency gave 100%% profitability.For example,: Binance coin (BNB).

HEDGING IN CRYPTOCURRENCY INVESTMENTS OR HOW TO PROTECT YOUR CRYPTOCURRENCY PORTFOLIO ??

As you can see, BNB has a good growth forecast. For the year it was 70 +%.

Thus, you end up with:

2 x 1.7 = 340%.

This is hedging. When you have additional growth due to the fact that you invest the received cryptocurrency in other products. It can not only be tokens. It can be crypto funds as well.

And even if you have a short-term or longer period of fallsOr cryptocurrency, or token, then you are protected.

Also, do not forget that you still need to correctlypick up cryptoinstruments that will grow. And for this you can use financial market forecasting systems, for example FINPROPHET.COM (https://finprophet.com). In the future, forecasting of cryptocurrency tokens (ICO) will be connected to this system.

HEDGING IN CRYPTOCURRENCY INVESTMENTS OR HOW TO PROTECT YOUR CRYPTOCURRENCY PORTFOLIO ??

Successful investments and

victories in financial markets!