Bitcoin Miners to Boost Profits with Launch of First Bitcoin Accumulator Product by GSR
The first ever Bitcoin Accumulator product has been launched to be used by novice traders as a derivative during times of high volatility.
GSR, a company dealing with algorithmic trading of cryptocurrencies, announced on their official Medium page the launch of the first ever Bitcoin Accumulator. The accumulator is a structured product that allows users to buy or sell digital assets at a predetermined price and select a closing period for the contract. Investors select the range of price that the coin will trade in the future and are obligated to buy or sell at the predetermined price during the time of the contract. This allows users to accumulate or reduce their holdings without much need for the technicalities in the market.
The GSR team is focused on giving new investors an easy and effective method to navigate the complex digital asset market. The difficulty of sourcing liquidity, extreme volatility at times in the market, fragmented liquidity, geographical restrictions, fake volumes, and other inconsistencies in the market are the key problems that GSR aims to solve.
GSR has launched its Bitcoin Accumulator product.
This is the first time such a product has been made available to the cryptocurrency market https://t.co/pfSUeYp1dw
— GSR (@GSR_io) March 20, 2019
Chart illustrating how the Accumulator works.
While the accumulator is commonly used in traditional financial markets, the Bitcoin Accumulator by GSR will be the first ever to be launched in the digital asset market.
Miners Set To Benefit From The Bitcoin Accumulator
“For the first time, GSR has launched a Bitcoin Accumulator product that is specifically tailored to the hedging requirements of a miner.”
The GSR Bitcoin Accumulator is specifically tailored for miners who have started out in the field. It is a simple OTC product that hedges the miners BTC value by allowing miners to sell their BTC at levels above the current market price. The product is a form of a derivative with a fixed sell/buy price and a fixated timespan to close the contract.
Speaking on the latest launch of the Bitcoin Accumulator, CEO of GSR, Rich Rosenblum said the integration of traditional financial markets products to the cryptocurrency system offers the diversity of options for investors in the field. He further remarked,
“We are focused on innovating and building new products as the market evolves and matures. There is a demand for fresh products and services that serve unmet trading needs.”
The accumulator will allow miners to offload and keep their BTC in a highly volatile cryptocurrency market. The miners will not have to worry about manually completing their BTC conversions as all they need to do is set their strike price and the system will automatically make the sale.
However, there are benefits and risks associated with the Accumulator system which you should be careful about. A trader can benefit from selling the amount specified above the current market rates while an increase in price above the Accumulator strike means the miner will sell his digital assets below the market price.
Founded in 2013, GSR is the original leader in algorithmic digital asset trading, and also a founding member of the Association for Digital Asset Markets (ADAM).
Images from Medium