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Question #364

Why do some large Bitcoin holders hedge their positions rather than accumulate during market downturns?

Catégorie: General
Hedging increases comprehensive exposure to market risk rather than providing protection
Hedging guarantees higher profits than accumulation during downturns for Bitcoin holders
Hedging helps protect against losses by offsetting risk instead of accumulation
Hedging requires no additional capital, unlike accumulation which needs continuous investment

Pourquoi est-ce la bonne réponse?

Large holders may use hedging strategies like futures or options to lock in values and limit downside risk. This allows them to preserve capital rather than adding more Bitcoin when prices drop further. Beginners should learn that hedging is a risk management tool that differs from buying more during a downturn.

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