Market Cap: $2,161,234,557,109
24h Vol: $27,443,222,876
Cryptocurrencies: 29749
Markets: 110884
Cryptocurrencies: 29749
Markets: 110884
Market Cap: $2,161,234,557,109     
24h Vol: $27,443,222,876
Seeking Alpha 2021-02-15 07:07:29

Hedging Your Bets On Cryptocurrencies

Hedging Your Bets On Cryptocurrencies
What is the most effective proxy-hedging instrument for the Bitcoin/USD market? A recent study that tackles this question reaches no definitive conclusion, except the negative one that there is no way Bitcoin can be "fully hedged because the density forecasting capabilities of Altcoins are inadequate."Bitcoin is the matriarch of the Altcoins family, and all the family members share some common features, so one might expect that the other coins could be used to hedge positions taken in the mother of them all vis-a-vis the dollar or another of the sovereignty-backed currencies.The problem, though, is that Bitcoin's history shows "unusual volatility clustering effects" that are not among the econometric features of the other coins.
esptco-banner img
Latest News

Videos

  • 0x (ZRX): What is 0x? (ZRX) (EXPLAINED)

  • Bitcoin Halving Explained: Why It Is So Important?

  • What is TRON (TRX)? EXPLAINED!

  • CEX vs DEX: Which Type of Crypto Exchange Is Better?

Our Partners

Hashing Ad Space
Inbound Junction
Magic Logix
Asimi
Crypto Marketing Agency, FINPR
Chainwire