In the cryptocurrency market, price change is often one of the biggest challenges faced by miners. For many miners, even if they use extremely good mining equipment, the lack of market prices can still have a significant impact on their income. In this context, how to ensure a stable income has become a major issue for miners.
VIABTC Provides effective risk management and liquidity solutions for miners through two innovative financial tools – hedging and crypto loan services. These tools offer unique benefits to helping miners cope with the market change, to block revenue, and to maintain liquidity. This article will introduce these tools and study how they help miners secure their income during market volatility.
HEDGING SERVICE: An approach to locking the income in advance
The hedging service operation is relatively simple. This is an effective way to change against market price change by locking the income in advance. When the market is at a high point, miners often remember that prices are declining, which may negatively affect mining income. The hedging service provided by the VIABTC is an important income insurance. Miners can borrow cryptocurrency and sell it at the current market price, locking revenue for a future period. This method prevents potential losses from price volatility. Subsequently, miners continue to mining in the pool, using the bitcoin they earn to repay the borrowed coins, which eventually earns a steady income.
For example, when Bitcoin reaches a high price of $ 100,000, the miner Alice experienced her account continuing to make 0.1 BTC per day, but she was filled with anxiety. Based on his years of mining experience, he believes that this price may be a temporary high, and a correction can occur in the next six months. If he continues mine and sells in a traditional way, his actual income will be backward if the price goes down. At this point, Alice uses the Viabtc hedging service: the platform estimates its output in the next 180 days is 18 BTC. With just 3 BTC as collateral, he immediately gained $ 1.8 million in stable funds. Over the next six months, the 0.1 BTC of his day -to -day mine will automatically pay off the debt, while releasing the equivalent of 10,000 USDT on his available account.
180 days later, the market confirms Alice's prophecy. When the price drops to $ 80,000, 18 BTC costs only $ 1.44 million under the traditional approach. However, by locking the income in advance, he successfully maintains $ 1.8 million in revenues, effectively making an additional $ 360,000 even when the price goes down. This method of locking the earnings in advance is essentially using financial tools to cash out the future revenue at a fine price, building a buffer for miners against a bear market.
The advantage of the hedging service is that it helps miners to secure the future income during the market change. In this way, miners will not only avoid losses caused by price decline but also generate stable income, allowing them to focus on mining without constantly concerned about volatility in market prices.
Crypto loan: maintaining upside down and flexible in managing liquidity
In addition to avoiding losses caused by price decline, miners can also deal with short-term cash flow issues. In many cases, miners may want to handle large amounts of cryptocurrency and believe in long -term potential price appreciation. However, they can urgently require funding for electric bills or maintaining a machine. This is where the crypto loan service is important. Unlike the healing, the crypto loan is a flexible financial tool for miners who are optimistic about future price trends. By using this service, miners can avoid the sale of property because of financial needs, thus maintaining potential appreciation for their holdings.
In contrast to Alice, Miner Bob strongly believes that Bitcoin is still not measured. When he immediately needed $ 600,000 to maintain his mining farm, he was caught in a problem with his 10 BTC. Selling them now for $ 1 million can cause him to miss out on future acquisitions, but his electricity charges and other costs are pressing.
At the moment, the Viabtc loan tool becomes a solution. Bob promised his 10 BTC to the Viabtc and immediately received $ 600,000 in working capital. After 30 days, the price of Bitcoin reached $ 120,000, making his 10 BTC worth $ 1.2 million. He just had to pay off the loan and restore his whole promise to owner. Compared to the traditional method of selling BTC in cash out, this method will not only solve its immediate problem but also allows him to enjoy an additional $ 200,000 in appreciation.
The advantage of a crypto loan is that it allows miners to have the best in both worlds: they can maintain the owner of their cryptocurrency assets while also accessing liquidity support as needed. For miners who need ongoing operational funds, such as having a “Crypto Credit account” – they do not have to sell their Bitcoin to the loss, while ensuring their mining operations.
A dual approach to keeping the miners' revenues
For miners, the dangers obtained by market uncertainty cannot be ignored. By incorporating the use of Hedging Service and Crypto loanMiners can respond flexible to a variety of market conditions. When they expect a market collapse, hedging helps to block existing income; When they are optimistic about long -term amounts, the crypto loan ensures operations to continue without losing potential benefits. Although these two tools may have the opposite goals, they together form a complete risk management matrix free from the strict obstacles of traditional finance.
For example, a miner can start using the healing service to block the mining revenue next year in the early stages of a bear market in late 2021. In 2024, they can use a crypto loan to gain funding for upgrading their mining machines and increasing the rate of hash, thus gaining more income to the mining price. The “maintaining income during the falls, increased investments during the revolt” allowed some miners to achieve growth even in industrial reshuffle.
As the mining industry continues to develop, the main competition of miners is moving from just to compete with the hash's power to gaining comprehensive risk management capabilities. VIABTC provides not only two financial tools, but a safety philosophy for the management of cycles in the market: While others simply bring losses during price -changing, financial derivatives will help miners develop a safety net for their income.
In an environment where uncertainty is standard, miners will not only find solid income paths in the midst of market change but also flexible to occupy market opportunities for higher income by using two Viabtc financial tools. Therefore, in dealing with future market challenges, miners should strategically use innovative tools to ensure their long-term revenue and stable mining development.
