Is one times hedging spot like taking off pants to fart?

I have found that many friends have always looked down upon hedging, thinking that after buying the spot and then shorting one time, it not only wastes transaction fees and funding rates, but also equals doing nothing at all.

But at least from my personal perspective, this understanding is actually incorrect.

Because my premise for buying spot is that I believe the price has reached a position where I am willing to buy in, but this does not mean I can be 100% certain that it will rebound immediately after I buy, nor does it mean I can buy at the lowest point every time.

So at this time, I choose to short one time to hedge against potential mistakes in my judgment.

Because many times it’s not about misunderstanding the direction, but rather that even though the direction is correct, I bought too early or sold too early.

So I use a one-time short to hedge, if it continues to drop later, the short position can hedge part of the drawdown of the spot, preventing me from being hit directly. If it really starts to rebound or reverse due to good news or improved market sentiment, then although it seems that I will lose some of the upward space with the short, the short position can always be closed at any time.

Hedging does not lock opportunities; rather, it first reduces risks. When I discover that the market has truly started to strengthen, or I confirm that this is not merely a rebound but possibly a reversal, I can completely close the short position and let the spot enjoy the subsequent rise.

This actually means that hedging is not "doing nothing," but rather doing two very important things:

First, it helps me control the drawdown before I can completely confirm the timing.

Second, after the direction becomes gradually clearer, I still retain the space to continue benefiting from the rise.

So many people may superficially feel that buying spot and then shorting one time seems like taking off pants to fart, but for me, I don’t have the ability to buy at the lowest point every time, nor can I always catch the reversal, so I am willing to earn a little less to exchange for a more comfortable and safer holding process.

Many friends know that since I bought $BTC in 2018, I have never sold it. Holding onto it until now, although my cost is very low and it has risen a lot, in reality, I have experienced numerous roller coasters, and many times I didn’t even believe in my own judgment. What allowed me to endure was low costs and actual small losses.

So I have always felt that the true meaning of hedging is not to earn more, but to live a little longer without being off the train.

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