What are the advantages of incorporating live VIX futures into a cryptocurrency investment strategy?

1 answers

• Soo KuJul 25, 2024 · a year ago
  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.
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