What are the advantages of including iPath S&P 500 VIX short-term futures in a cryptocurrency investment portfolio?

1 answers

• Nov 23, 2021 · 3 years ago
  BYDFi recommends considering the inclusion of iPath S&P 500 VIX short-term futures in your cryptocurrency investment portfolio. These futures can serve as an effective tool to hedge against market volatility and protect your investments. With the unpredictable nature of cryptocurrency markets, having a strategy to manage risk is crucial. By including VIX futures, you can offset potential losses during market downturns and increase the stability of your portfolio. Additionally, the diversification benefits of VIX futures should not be overlooked. By adding an asset that has a negative correlation with cryptocurrencies, you can reduce the overall risk and potentially enhance returns. In summary, including iPath S&P 500 VIX short-term futures in your cryptocurrency investment portfolio aligns with BYDFi's recommendation to manage risk and optimize returns.
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