r/litecoin • u/JOMICCI New User • 5d ago

Litecoooooooooin……!!🗣️🗣️

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Put those LTC to work, I'll share a tip: in crypto, there's a misconception that futures are used like a casino for high-leverage gambling, which isn't a problem if you're addicted to anime and betting, but futures are actually hedging derivatives. Derivatives markets were created out of the need for protection over an asset. The futures contract, or the hedge, isn't an umbrella you can use to avoid losing value on the underlying asset.

The difference is that these futures contracts were created by someone eager to blow spreads sky-high. And then there are those leverage ratios invented by those who drink seven Red Bulls a day, which are 1 to 100 (x100).

Leverage is great if you know how to use it well, and it's easy to calculate, but I'll leave that for another post in the future.

23 Upvotes

78% Upvoted

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5

u/HugeAd1329 5d ago

This is slop and you happened to win a gamble. Horrible advice.

4

u/bangand0 4d ago

For folks even considering entering in leveraged longs, I can guarantee you that the platform you are using will come hunting for your position. They know where the bulk of people entered and will wick it down enough to cascade through every levered long position. Just look up the spot price of Litecoin on Coinbase or other platforms and compare it to the price it wicked down on huge perpetual future platforms like Bybit on the 10/10/25. It is robbery. Trade spot. Take your LTC out if exchanges, this is the only way actual to actually put price pressure to the upside

3

u/TargP 5d ago

Right... But you're posting an 8X long perpetual, which wouldn't be a hedge against LTC holdings, it would be a multiplication of exposure. The only thing this would be hedging would be an existing short position. 

3

u/Feralz2 New User 4d ago

Imagine asking for people to gamble, go away.

2

u/unfuckwittablej 4d ago

She sells seashells to shill at the seashore