Glossary of coin sphere hedging

For the newest who just entered the coin circle, lack of knowledge is a hard injury. To make achievements in the coin circle, learning and constant learning are essential, this article will share with you the content related to coin sphere terminology hedging. Let's take a look.

The principle of hedging is to monitor the transaction information of each exchange through software. Once some transactions have a certain price difference on different exchanges, high-frequency transactions can be used to make profits.

For example, both exchanges have an EOS/BTC transaction pair. Once the two exchanges have a price difference and the price difference reaches "profitable, the software automatically buys EOS on low-price exchanges and sells the same amount of EOS on high-price exchanges. As a result, the number of your EOS remains unchanged and the number of BTC increases.

To hedge against Brick moving, first, you need to have a code/software and software running environment (Local/ECS) to hedge against Brick moving. Second, you need to select the exchange and transaction pair for Brick moving; finally, deploy the software based on the selected exchange and transaction.

It is very important to choose a reliable exchange for hedging. In fact, it is basically the same as the exchange principle that we normally choose to buy coins. It is nothing more than security, transaction depth, and other issues, select a mainstream exchange that everyone recognizes. This is more secure.

Hedging, the most important thing is to choose the transaction pair to hedge. How to choose a transaction pair actually requires a good study. The following lists the principles that I think should be followed:

1. currency that cannot be acquired, do not hedge: The two currency pairs that are mutually traded should be favored by yourself for a long time, because the market will inevitably fluctuate, and the currency in the transaction pair will also rise and fall, if you are not optimistic about their long-term value, it is difficult to put them there to earn money;

2. if the currency is too popular, do not hedge: If it is profitable, the scammers will take action. The mainstream currency gains the attention of most of the market, and fierce competition will bring about a public tragedy, in the absence of high competitiveness, it is assumed that the arbitrage efficiency is not high;

3. On the basis of ensuring security, choose as many exchanges as possible for hedging: if more exchanges are monitored, more price difference opportunities will be discovered.

To sum up one sentence: You can choose a currency that you understand and are optimistic about. It is launched on multiple exchanges and has a certain transaction depth to hedge.

Mary

Link: https://www.kg.com/article/507465973369016320

Glossary of coin sphere hedging