When we perform airdrop tasks, we find that many coins experience a significant drop after the airdrop, which means if our speed is slow, the expected returns will be greatly reduced. For example, if we invest 3 BNB in a new token, and BNB drops from 1000 USD to 950 USD after the investment, while the airdrop is only worth 100 USD, we become like that sheep, directly losing 250 USD. Out of this, 100 USD is from the airdrop, and 150 USD is caused by the drop in coin price. We expected to receive this 100 USD for free, but in reality, we ended up losing 50 USD. How can we avoid this situation? I believe there are two solutions.
1. Borrow coins by staking 6 BNB worth of USDT to borrow 3 BNB. This method is the safest; you only need to pay a small fee to insure your BNB, but you cannot gain from the drop in value.
For 2.1x short contracts, we open a short position of 3 BNB at 1x half an hour before the new issue ends, then buy 3 BNB. This minimizes liquidation risk; for liquidation to occur, BNB would need to rise to 2000 USDT. If BNB drops, we can benefit from that drop, and our BNB holdings will break even. The same logic applies if BNB rises. It should be noted that this method may not be suitable for earning coins through locked savings, as contracts have position fees, which might end up being more expensive than staking returns. Additionally, if the price rises rapidly, we cannot redeem the coins, and if the price then falls quickly, it would lead to maximum losses.
Overall, borrowing coins is the safest option, as you do not have to worry about fluctuations in coin prices. The downside is that you cannot benefit from price drops, and the borrowing interest for major coins like BTC, BNB, and ETH is higher than for contracts, but it can be negligible for the value of airdrops. Moreover, if the price of the coin rises rapidly while you have just sold the spot, your funds may get trapped.
Through hedging, we can lock in expected returns, which is very worth learning.
