One Simple Strategy (Hedging) when you want to powerdown and sell steems

justyy (81)in #crypto • 28 days ago

Let's say, if you have some STEEMs but you would need to power down first which takes 7x4 days for a 100% power down. If you want to ensure your steems are worth of current values, you can short STEEM in STEEMUSDT Perpetual.

You can do this in HTX, MEXC, Binance or other big exchanges.

So, there are two scenarios when you have fully powered down the STEEMs.

if the price goes up, you lose the bet as you shorted the steems, however, as the steem price goes up, this covers the loss.
if the price goes down, you win the bet as you shorted the steems, however, the steems you have now are worth less.

In either way, you ensure the steems are worth as much as the day when you started to power down.

This is one simple strategy to protect oneself against loss on (a bet or investment) by making balancing or compensating transactions.