Crypto Hedge is a special type of investment fund that acts as insurance against rare, major market crashes. It protects your investments during unexpected, extreme events that could cause the market to plummet, allowing you to hold your investments for longer and increase your compounding rate by avoiding major drawdowns. Additionally, having this insurance can produce outsized gains that surpass the insured amount.
Protect your crypto investments from extreme market downturns with our advanced derivatives strategies.
Step 1: Purchase Hedging Insurance
Allocate a portion of your portfolio to buy insurance (hedge) against market downturns. The total cost of this hedge is approximately 0.25-0.75% of your total capital per month. All your funds and capital remain with you; only the monthly cost is deducted to cover the insurance.
Step 2: Benefit from Protection
In the event of a downturn, your capital is protected. Coverage ranges from 20% to 180% of your total capital, depending on the severity of the market decline and the allocated cost.
Example:
Let’s say you want to protect a $100K capital. You decide to hedge with a 0.25% monthly cost. You send $500 to cover 2 months of insurance. Crypto Hedge will use these funds to buy the insurance for you. You can manage this insurance position as needed—for example, you can sell early, stop, or roll the position.
Enhance your portfolio’s resilience and gain peace of mind with our tailored tail hedging service.
This calculator demonstrates the amount of capital protected when you have a hedge in place. Additionally, it shows the potential growth of your crypto if you reinvest your insured capital.
Results:
Initial Bitcoin Purchased: 0.000 BTC
Without Insurance: $0 / 0.000 BTC (-100.00%)
With Insurance: $0 / 0.000 BTC (-100.00%)
This calculator reveals the cost of your hedge and its impact on long-term growth, assuming no hedging benefits, such as if a hedge were unnecessary.
Results:
Initial Yearly Hedge Cost: $0
Final Yearly Hedge Cost: $0
Total Hedge Cost (10 years): $0
Capital After 10 Years (With Hedge): $0
Capital After 10 Years (Without Hedge): $0
Difference: $0
This calculator simulates Bitcoin price and portfolio values based on user-defined parameters. It includes real crash percentages from 2011 (83%), 2013 (70%), 2018 (84%), and 2021 (65%). Adjust parameters to explore different scenarios.
Crash Details
Results:
Final Capital (With Hedge): $0
Final Capital (Without Hedge): $0
Total Hedge Cost: $0
CAGR With Hedge: -100.00%
CAGR Without Hedge: -100.00%
Final Bitcoin Price: $0