🛡️📉 New to futures? Don't make my $5,400 mistakes trying to guess the market. Today, let's talk smart hedging for your spot holdings, a practical way to protect your gains. Say you hold 1 BTC spot, currently $60,000. You anticipate a short dip but don't want to sell your spot for tax or other reasons. A simple hedge: open a small short futures position. To protect, say, 10% of your BTC's value ($6,000), you'd open a 0.1 BTC short. With 10x isolated leverage, this might only tie up $600 collateral.
The cost? Funding rates. If funding is +0.01% every 8 hours (common in bull markets), your $6,000 short pays $0.60 per cycle. Over a week, that's roughly $12.60. Hedging makes sense when you predict a clear, short-term downturn and want to protect unrealized gains without liquidating your spot....
The cost? Funding rates. If funding is +0.01% every 8 hours (common in bull markets), your $6,000 short pays $0.60 per cycle. Over a week, that's roughly $12.60. Hedging makes sense when you predict a clear, short-term downturn and want to protect unrealized gains without liquidating your spot....