Tag: volatility
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Hedging Volatile Cryptocurrency Risk, Such As Bitcoin
What is a ‘Hedge’? A hedge is an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract. Hedging is the practice of purchasing and holding securities to reduce portfolio risk. These securities are intended…
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Causes of Bitcoin Volatility
Why is Bitcoin so volatile? Before we jump into discussing about its causes, let us look into the fundamental existence of Bitcoin. Bitcoin is constantly bought and sold by traders and cryptocurrency users. Bitcoin also has all the properties of money. Bitcoin is recognizable and accepted as a means of payment in some countries…