Which cryptocurrencies are commonly used in long put strategies?

3 answers

• Nov 28, 2021 · 3 years ago
  When it comes to long put strategies, Bitcoin (BTC) and Ethereum (ETH) are two of the most commonly used cryptocurrencies. Both Bitcoin and Ethereum have high liquidity and are widely recognized in the market, making them ideal for long put strategies. However, it's important to note that the volatility of these cryptocurrencies can also pose risks. It's crucial for investors to carefully analyze the market conditions and consider risk management strategies when using Bitcoin or Ethereum in long put strategies.
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• Nov 28, 2021 · 3 years ago
  Long put strategies often involve the use of stablecoins such as Tether (USDT) or USD Coin (USDC). These stablecoins are pegged to a fiat currency, usually the US dollar, and aim to maintain a stable value. By using stablecoins in long put strategies, investors can reduce the exposure to the volatility of other cryptocurrencies. However, it's important to consider the counterparty risk associated with stablecoins and choose reputable issuers to minimize the risk of default.
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• Nov 28, 2021 · 3 years ago
  In long put strategies, it's common to use options contracts on cryptocurrencies. These options contracts provide investors with the right, but not the obligation, to sell the underlying cryptocurrency at a predetermined price within a specified period of time. By using options contracts, investors can benefit from the potential downside protection while still participating in the upside potential of the cryptocurrency market. Platforms like BYDFi offer a wide range of options contracts on various cryptocurrencies, providing investors with flexibility in implementing long put strategies.
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