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Bitcoin fell below $8000. How to hedge the spot risk?
For example, the current price of Bitcoin is $8,000. If it falls to $7,000, you will lose 1 1,000 directly on the spot of Bitcoin without any hedging.

However, if you do the corresponding hedging and open a put option in BitOffer, the cost is about 10 USD. If bitcoin drops from $8,000 to $7,000, the put option will get $65,438+$0,000. This will offset the spot loss of $65,438+0,000, and there will be no loss in the account.

What happens if bitcoin rises from $8,000 to $9,000? The cash earned $65,438+0,000, and the put option only lost $65,438 +00, which is the charm of hedging.