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How Are Options Used for Hedging a Cryptocurrency Portfolio?

Buying put options on a cryptocurrency hedges a portfolio by setting a minimum sale price, protecting against downside risk.
Greeks.Live07.11.25

How Are Options Used for Hedging a Cryptocurrency Portfolio?

Options are used to hedge a crypto portfolio by purchasing put options on the underlying cryptocurrency. The put option grants the right to sell the asset at a predetermined strike price, effectively setting a floor on the portfolio's value.

This protects against downside risk while allowing for potential upside gains.

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