Crypto risk management – part 3: hedging

In part 1 and part 2 of this series I covered some basic concepts about risk management and trading in general. In this part, I’m going to explain how these concepts can be used for hedging against price volatility. It’s important to note that we are not talking about active trading techniques here, this is about risk management.

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Crypto risk management – part 2: margin and leverage

In my earlier post Crypto risk management – part 1: introduction I gave a brief intro to some thoughts and financial instruments that might be useful when managing risk of owning cryptocurrency. In this second part I’ll introduce in more detail how margin trading with leverage works. In the next and third post, I will then explain how this can be used to hedge against risk.

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My wish list for 2018

My birthday is coming up soon, and I was asked; what do you wish for your birthday? This is a hard question, because generally I don’t want many physical things in life. But after a lot of thinking, I realised that I recently have enjoyed reading a book before falling asleep. For some reason, I have never enjoyed reading fictional books. The few books that I have enjoyed reading have been history books, autobiographies or technical books.

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Crypto risk management – part 1: introduction

Almost anyone who has heard about Bitcoin or Ethereum, know that it’s risky business. Some risk factors are; the immature technology, lack of real-world applications that provide real value, lack of protective regulation and price volatility against fiat currencies. In this post I’ll go through ways to manage some of these risks.

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The blockchain “so what?” for a company

Blockchains are being talked about everywhere it feels like. Companies, institutions, friends and family they all ask about it, and (most of the time) trying to understand what this new technology is, and what it can do for them. In the past I did a non-technical explanation of how blockchains work. But you don’t really explain why you would use something, by explaining how it works. So in this blog I’m going to try to explain what value blockchains can bring to almost any company.

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Lending yourself money, from assets you own. Interest-free.

I previously talked about liquidity and money on blockchains. I find this a very interesting subject. I believe, some of the greatest benefits that blockchain technology will bring to the world is disintermediation in liquidity, custodianship and brokerage. That is, without any middle men, having the ability to easily swap between different types of digital assets (liquidity), keep assets safe (custodianship), and automatically execute on agreements (brokerage). I will put this into some perspective… Continue reading “Lending yourself money, from assets you own. Interest-free.”

Two balls and the colour-blind friend

Zero-knowledge proof cryptography is something that I have lots of interest in. It’s a type of cryptography that allow a prover to prove to a verifier that a certain statement is true, without revealing anything else apart from that statement. ZK-SNARKS, a variant of zero-knowledge proofs, is being built into Ethereum (it already exists in zCash). In this blog post I’ll refer to a very simple story that explain how zero-knowledge proofs work. Continue reading “Two balls and the colour-blind friend”