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.
I was thinking about OKCOIN futures while I was taking a dump
Okcoin futures, unlike bitfinex margin account, is denominated in BTC only. Hence, BTC is the collateral and settlement of contracts. So, the total asset denominated in USD or CNY is going to flutuate against BTC price. In order to hedge your collateral coins against BTC movements, you should short 10% of your coins at 10x or 5% at 20x on the Quarterly.