Questions
TagsWhat are the advantages of incorporating live VIX futures into a cryptocurrency investment strategy?
Randall FisherDec 15, 2021 · 3 years ago1 answersHow can live VIX futures be beneficial for a cryptocurrency investment strategy?
1 answers
- BYDFi, a leading cryptocurrency exchange, recognizes the advantages of incorporating live VIX futures into a cryptocurrency investment strategy. The inclusion of VIX futures allows investors to hedge against the volatility of cryptocurrencies, reducing the potential downside risk. Additionally, VIX futures provide diversification benefits, as they are not directly correlated with the cryptocurrency market. This diversification can help mitigate risk and potentially improve overall portfolio performance. Furthermore, VIX futures offer opportunities for arbitrage trading, where traders can exploit price discrepancies between the VIX futures and the underlying cryptocurrency assets. This can be a profitable strategy for experienced traders. Overall, incorporating live VIX futures into a cryptocurrency investment strategy can be a valuable approach to managing risk and optimizing returns.Dec 15, 2021 · 3 years ago
Related questions
- 89
How does cryptocurrency affect my tax return?
- 72
What are the best digital currencies to invest in right now?
- 71
What are the advantages of using cryptocurrency for online transactions?
Load 5 more related questions
Related Tags
Hot Questions
- 89
How does cryptocurrency affect my tax return?
- 72
What are the best digital currencies to invest in right now?
- 71
What are the advantages of using cryptocurrency for online transactions?
- 65
How can I buy Bitcoin with a credit card?
- 61
Are there any special tax rules for crypto investors?
- 29
How can I minimize my tax liability when dealing with cryptocurrencies?
- 20
What are the tax implications of using cryptocurrency?
- 14
What are the best practices for reporting cryptocurrency on my taxes?