I've noticed a recent influx of questions regarding BTC and LTC futures on the daily thread. Many first timers with questions like: where to trade them, socialized losses and leverage. I compiled a list of questions that a trader should answer to fully understand futures. Please add to the list if I miss something. Google for all answers.
I have no problem holding bitcoins. However, oftentimes, I do not wish my fiat value of BTC to fluctuate too much. I hedge my bitcoins using futures market. There aren’t too much literature of hedging so far, so I'll go over what I do. In this bitcoin article, I will go over the setup, and risk involved with bitcoin hedging and trading.