If you are mining Crypto currency you need a hedging program to mitigate the risks of down markets and to optimize profits from bull markets. Crypto Currency is and will continue to be volatile. Bloc10 has the experience and toolset to create an active hedging program based on your mining operation. All hedging programs are customized as every miner is different. We charge a flat ‘management fee’ calculated yearly paid monthly, no contract or obligation. Each month you will see the results we will bring to your mining operation. You will open accounts with derivatives providers directly, and we will have trading authority on the hedging accounts (Limited Power of Attorney) to execute hedging contracts.
Imagine the following scenario – you have just mined $1 Million USD worth of coin – an exchange is hacked and your coin drops 20%. You’ve just lost $200,000 ! Miners know that it’s not all profit – you need to pay your electricity and other expenses. As the market goes up and down – don’t let your business rise or fall. Maintain stability with a strong mining program (Crypto Mining Hedging).
A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. In simple language, a hedge is a risk managementtechnique used to reduce any substantial losses or gains suffered by an individual or an organization.
A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, gambles, many types of over-the-counter and derivative products, and futures contracts.
Public futures markets were established in the 19th century to allow transparent, standardized, and efficient hedging of agricultural commodity prices; they have since expanded to include futures contracts for hedging the values of energy, precious metals, foreign currency, and interest rate fluctuations.