How Can a Miner Use a Futures Contract to Lock in a Profitable Price for Their Mined Coins? ▴ Learn

How Can a Miner Use a Futures Contract to Lock in a Profitable Price for Their Mined Coins?

A miner can enter into a short futures contract, agreeing to sell a specific amount of the cryptocurrency at a predetermined price on a future date. If the current market price of the coin is above the miner's break-even point, this locks in a profitable margin, regardless of how low the spot price may fall before the contract expires.

This hedges against price risk.

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