Strategic hedging involves employing various financial instruments or techniques to reduce potential risks associated with adverse price movements in an asset or portfolio. In digital asset markets, this might include using derivatives, stablecoins, or diversification to protect against cryptocurrency volatility. It is a risk management approach.
Context
As digital asset markets mature, strategic hedging practices are becoming more sophisticated among institutional and advanced retail investors. The availability of regulated futures and options contracts for major cryptocurrencies provides new avenues for risk mitigation. Discussions continue on developing more robust and accessible hedging tools for a broader range of digital assets.
The cryptocurrency market is maturing, with a significant portion of global investors now viewing digital assets as a strategic tool to preserve purchasing power against inflation.
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