Some people say that if the currency price declines more than the strategy's increase, the fiat currency will suffer losses. If you don't do anything, it is true for the pure coin-making strategy. For this strategy, if you only want to earn fiat currency, Is there a way? The answer is of course affirmative. Using the hedging function of futures is very simple and can achieve the purpose of making money by making coin. Here is a bitmex hedging example to demonstrate how to make money by making bitcoin strategy:
1. Suppose if the principal you invested is 5550USD, just 0.5 btc, the current bitcoin price is 11100USD.
2, then you need to short 0.5btc at bitmex futures station, ie 0.5*11110=5550USD, the selling price is 11100USD
Referring to the figure below, you can see that the commission value is just about 0.5btc of your principal.
After this operation, your principal, regardless of the price of the currency, will be equal to 5550USD.
Then the currency earned by the strategy will be pure profit, which will achieve the effect of making money by making coin. Of course, this is only for the pure coin-making strategy. For example, Aijie robot is a pure coin-making strategy, for that half of the coin. The arbitrage strategy is not applicable. In addition, if you short the quarterly futures, the general price will be a premium over the spot price. You can earn this premium by the delivery date. When the price is high, it is as high as 10% or more. This is a risk-free profit, but remember to have enough margin to avoid a burst! ! !