1X Short Ethereum Token price is $3.70
As of the latest data, 1X Short Ethereum Token (ETHHEDGE) has increased +0.00% in the past 24 hours. It's important to note that because ETHHEDGE aims to deliver inverse performance to Ethereum's daily return, its price movements are typically opposite to Ethereum's price changes.
1X Short Ethereum Token (ETHHEDGE) is a type of derivative product known as an inverse token. As an ERC20 token on the Ethereum blockchain, ETHHEDGE seeks to provide returns that correspond to the inverse of Ethereum's daily return. This means that when Ethereum's price decreases over the course of a day, ETHHEDGE is designed to increase in value by a roughly equivalent percentage, and vice versa.
1X Short Ethereum Token is offered on the FTX platform, a cryptocurrency derivatives exchange. The team responsible for this product has engineered ETHHEDGE to help traders hedge against Ethereum’s volatility or to speculate on the price movements of Ethereum without directly holding the cryptocurrency.
ETHHEDGE operates by using complex financial instruments and derivative contracts to emulate the inverse performance of Ethereum’s daily returns. When someone buys ETHHEDGE, they are essentially entering a bet that Ethereum's price will go down. If Ethereum's price falls, the value of ETHHEDGE should rise accordingly, minus any fees or expenses associated with the product.
The uniqueness of ETHHEDGE lies in its design as an inverse token. Unlike traditional tokens that appreciate with the rise of the underlying asset, ETHHEDGE gains when Ethereum's price falls. This can be particularly appealing for investors who expect a downturn in Ethereum's price and want to hedge their bets or even profit from such movements.
ETHHEDGE’s performance is calculated based on the daily percentage change in the price of Ethereum. For example, if Ethereum’s price decreases by 10% on a given day, ETHHEDGE is designed to generate a positive return of 10% for the same period, before fees and expenses. It's important to understand that this calculation is reset each day, which means the token's performance is designed to track Ethereum's daily returns rather than its longer-term performance.
Investing in inverse tokens such as ETHHEDGE carries significant risk. The primary risk is the complex nature of derivatives and the leverage involved. Additionally, because the performance is tied to the daily return of Ethereum, holding ETHHEDGE over longer periods can result in returns that vary significantly from -1 times the return of Ethereum. Moreover, the rebalancing of the derivative positions can lead to decay in value over time, especially in volatile markets.
To fully understand ETHHEDGE, one must be familiar with Ethereum. Ethereum is a decentralized blockchain platform known for its native cryptocurrency, Ether (ETH). Ethereum facilitates smart contracts and decentralized applications (DApps) without any downtime, fraud, control or interference from a third party.
The current value of 1X Short Ethereum Token (ETHHEDGE) is approximately $ 3.70. Remember that its value fluctuates in response to Ethereum's price movements—investors should monitor these changes closely if they are invested or interested in ETHHEDGE.
1X Short Ethereum Token (ETHHEDGE) can be purchased on FTX.com and potentially other crypto exchanges. Buyers should ensure they are using a legitimate and secure exchange to conduct transactions.
Protecting your 1X Short Ethereum Token, like any other cryptocurrency holding, involves good security practices. Utilizing hardware wallets for storage, enabling two-factor authentication on exchange accounts, and being wary of phishing attacks are critical steps in ensuring the safety of your tokens.
Ethereum
JokInTheBox
Puppy
Smart AI
Predict Crypto
Kakaxa
Nerds
Juice
Ura
Live Prices, Widgets, Alerts, Portfolio, Apple Watch app
