Market Cap: $2,216,527,641,119
24h Vol: $59,533,083,361
Cryptocurrencies: 29557
Markets: 110485
Cryptocurrencies: 29557
Markets: 110485
Market Cap: $2,216,527,641,119     
24h Vol: $59,533,083,361
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

  • What are Blockchain Forks? Hard Fork Vs Soft Fork!

  • Bitcoin OR Altcoins: Which Is Best? Easy Explanation!

  • A Beginner Guide to Web 3.0: Everything You Need to Know About Web 3.0!

  • 10 Ways to Make Money Via Crypto | Step by Step Guide to Make Money Online!

Our Partners

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