YouHodler's Cloud Miner Strategies: Hedging & Scalping

Lesson 6: Strategies to Earn Higher Rewards Through the Cloud Miner

Let's take a look at two methods that you can use to earn more money with the YouHodler Cloud Miner. While the service is very simple and intuitive to use, there are ways to maximize your earning potential by performing certain strategies.

The first strategy to look at is called Hedging. This is a simple strategy where traders essentially protect themselves by trading on an opposing position or asset as a way of balancing out the risks of their initial trades. This is very easy to do with MultiHODL, due to its wide range of assets and pairs, along with the ability to open a short position on any pair (which means you are using funds to secure yourself against a risk that was taken).

In one sense, it might sound counterintuitive to open two opposing positions, but it is a good business practice to have some risk-management protections in this way. Plus, the biggest perk is that your MultiHODL activity will amount to more Sparks for the Cloud Miner. Let’s take a look at an example to illustrate this.

I own 180 Euros worth of XRP on my YouHodler account. However, I have some concerns that it might decrease in value due to poor press. So, to protect myself, I head over to MultiHODL and open a short/sell position against XRP. I need to ensure that my short investment amounts to 180 Euros, but thankfully, I can pledge just 60 Euros and then use the x3 multiplier to make it count for 180 Euros.

I then open the position. Now, this means that no matter what, I essentially break even as I own 180 Euros of XRP, yet I have also placed 180 Euros against it, creating a balanced portfolio. I am not actually looking to make money directly via each position, but rather, I am doing this almost exclusively for the Sparks that I get from using MultiHODL.

This is a very low-risk method of doing so. Of course, remember to close your MultiHODL positions at some point, as they are only needed for the short term for this to work.

The second strategy to look at is called Scalping. This is the act of opening many small MultiHODL positions and closing them once they become profitable as a means of earning more Sparks. Remember, Sparks are needed to power your Cloud Miner. This works because your activity on MultiHODL has a direct impact on how many Sparks you earn. Let me show you how to perform this method.

I begin by identifying a trading pair, and then clicking on Start New MultiHODL. My aim is to find a short-term position that seems relatively positive. It does not need to be an extremely lucrative position or trade, but rather, just a trade that will allow me to make a small profit. The positions you want to look for are those that stay open for only a few minutes or hours. For this example, I am using XRP/USDT, and in my belief, XRP’s price in contrast to USDT will be dropping.

After deciding on what my position will be, and using the built-in MultiHODL multiplier, I make sure to change my Stop-Loss and Take-Profit parameters to appropriately take any risk management decisions. After creating this, you can see that I have several MultiHODL positions open, but none of them are extremely profitable.

This is because I am doing it primarily for the Cloud Miner Sparks. Once I have earned the Sparks that I need to power my blocks, and once my MultiHODL positions are in the green, I close them, and I then move to the Cloud Miner and add my Sparks.

Hedging and Scalping are two great methods of gaining more Sparks in a relatively low-risk environment, allowing you to make passive income via the Cloud Miner. There are other ways of doing this, too, but these strategies are easy to enact, and very effective.

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