After Bitcoin's price broke 80,000, various altcoins have shown signs of fatigue today. I anticipate a market correction tonight. Brothers, hedging is an effective risk management tool when Bitcoin prices are high.
Hedging involves holding both spot and derivative contracts simultaneously to offset potential losses from price fluctuations. In the Bouncebit$BB ecosystem, users can leverage its integrated CeFi framework to conduct secure and compliant asset management using Ceffu MirrorX services:
1. Bouncebit ($BB ) Bull Market Strategy
(In simple terms, this means selling 1x of the BTC contract! To capture the funding rate)
Bouncebit, as a comprehensive CeDeFi framework, provides Bitcoin holders with a wealth of yield opportunities. By participating in on-chain ecosystem DeFi yields, infrastructure yields, and on-chain CeFi yields, users can maximize their asset's potential returns.
On-chain Ecosystem DeFi Yields: Utilize DeFi applications and opportunities in the Bouncebit ecosystem, such as liquidity provision, yield farming, as well as new project launches or governance mechanisms to obtain incentives like transaction fees and governance tokens.
Infrastructure Yields: Earn staking rewards and network transaction fees by staking Bitcoin and Bouncebit tokens, participating in node staking and PoS mining.
On-chain CeFi Yields: Utilize Ceffu MirrorX services for asset management, participate in Binance's funding rate arbitrage opportunities, and exploit price differences between futures and spot markets for arbitrage.
2. Hedging: Ensure Asset Security
Hedging is an effective risk management tool when Bitcoin prices are high. Hedging involves holding both spot and derivative contracts simultaneously to offset potential losses from price fluctuations. In the Bouncebit ecosystem, users can leverage its integrated CeFi framework to conduct secure and compliant asset management using Ceffu MirrorX services.
Specifically, users can deposit part of their Bitcoin spot into MirrorX while participating in Binance's funding rate arbitrage opportunities. This not only maintains on-chain visibility and transparency of assets but also ensures asset security through compliant custody services. During periods of increased price volatility, profits from derivative contracts can partially or entirely offset losses in the spot market, thus protecting the investor's principal and returns.
3. Funding Rate Arbitrage: Enhance Yield Potential
Funding rate arbitrage is a trading strategy that exploits the differences in funding rates between different markets, particularly suitable for the current high volatility of the Bitcoin market. In the Bouncebit ecosystem, users can easily engage in spot-perpetual arbitrage by executing spot and perpetual contract trades simultaneously to obtain stable returns from funding rates.
Taking a funding rate of 0.03% as an example, suppose an investor uses $4,000 (approximately 0.2 Bitcoin, calculated at $20,000/BTC) for funding rate arbitrage, the daily income from the funding rate would be $1.80. Calculated on an annualized basis, this strategy can yield an annualized return of up to 32.95%. This strategy not only reduces reliance on price predictions but also achieves additional returns by exploiting market inefficiencies.
