Welcome to our comprehensive guide on how HedgeTrade works. Get ready to learn everything you need to know to begin using the HedgeTrade platform today. Let’s start by
What is HedgeTrade?
HedgeTrade is a forecasting platform designed specifically for amateur traders who are looking to make trades alongside the experts. Experienced traders stake HEDG tokens to show confidence in their trade prediction “Blueprints,” while novice traders can purchase these Blueprints to trade like the pros.
- When their predictions are correct, traders earn proceeds from the users who purchased their Blueprint. They may potentially earn more by staking additional HEDG tokens on their Blueprint, as this increases the purchase price for other users.
- If the trader’s prediction is incorrect, purchasers then receive a refund of the Blueprint purchase. Additionally, the initial purchasers for each Blueprint will share the staked tokens if the trader’s forecast is inaccurate.
The HedgeTrade platform brings novice traders and experienced traders together through a verified and ranked system. With this system, novice traders can get an inside look as to how experienced traders carry out their work.
Trader Ranking System
HedgeTrade’s ranking system will help identify experienced traders according to numerous criteria, including:
- Birth of account
- Number of successful Blueprints
- Blueprint Viewership
- Blueprint Contributors
- Amount of HEDG earned
- Account age of contributors
Creating a Blueprint
Traders who already possess the skills for successfully engaging in market trades share their knowledge and experience with those new to trading. They can monetize their trade predictions by creating “Blueprints” on the HedgeTrade platform which novice traders can purchase to unlock the prediction details.
The traders that post their predictions can actively earn the platform’s currency – called HEDG tokens – for sharing their knowledge.
A Blueprint is saved through an Ethereum smart contract – a blockchain hosted program that, for HedgeTrade, provides a form of recordkeeping that can never be modified. All Blueprints are hosted on the blockchain, thus creating a key component to accountability on the HedgeTrade platform.
Browsing the Blueprint Market
After its creation, the Blueprint is available to HedgeTrade users for purchase by way of the HEDG token, or by using bitcoin. Users may browse the Blueprint Market to see what predictions traders have published. Additionally, users can click on the Trader’s name to view details on their current Blueprints and historical performance.
Purchasing the Blueprint
When a user is ready to purchase a Blueprint, they buy it with their HEDG tokens or Bitcoin. After that, the Blueprint details will be unlocked and visible on the user’s Purchased Blueprints page.
How HedgeTrade Works for Traders
Now that you have the basics down for creating and selecting Blueprints, let’s discuss how HedgeTrade users and traders navigate the predictions platform using the HEDG token:
Step 1: Acquire HEDG tokens
Traders and users may purchase Blueprints by paying with HEDG tokens or Bitcoin after signing up on the platform. In order to acquire tokens initially, users can purchase HEDG from certain exchanges and deposit them into their HedgeTrade account. Visit HedgeTrade.com to find the most updated list of supported exchanges. (Alternatively, Bitcoin can be moved into a user’s account for purchasing Blueprints and staking.)
Step 2: Stake HEDG Tokens in the Blueprint
Traders stake HEDG tokens when they create their trading prediction Blueprint. The more they stake, the more they stand to earn if their prediction is correct.
Step 3: Create the Blueprint
To create a Blueprint, traders fill out the following trade details:
- Exchange (i.e. Bitstamp)
- Trading pair (i.e. BTC/USD)
- Entry (a predicted value where the trading pair price will move to)
- Exit (a predicted value where the trading pair price will move to after it hits the Entry)
- Stake (what amount of HEDG tokens the trader is staking)
- Expiry (the time when the Blueprint resolves, optimally, a time when Entry and Exit have been hit)
After completing the details, the trader’s Blueprint will look something like this to other users that view the Blueprint:
The locks signify the information about that trade that you cannot access until purchasing the Blueprint. When a user decides to purchase the prediction, they essentially buy the Blueprint to unlock the rest of the details. The price of the Blueprint is 10% of the amount staked by the trader who created it.
Traders who are creating Blueprints can save them in draft before publishing if they need a little time to check their data or they need more time to complete all the details.
The Novice Begins Trading
Once a user has browsed the Blueprint Market, found a Trader they like, and selected a prediction Blueprint, they can use HEDG tokens to buy that prediction. If they do not have enough HEDG tokens, they will have to deposit funds by clicking the Deposit Funds menu option.
Step 4: User waits for the expiration
The users wait for the Oracle to resolve the Blueprint at the exact time of the expiration. The Oracle is an automated system that verifies the trade based on information from a third party.
Step 5: The outcome of the Blueprint
If the Blueprint prediction is correct, HEDG tokens are automatically distributed to the trader. Amounts vary according to the amount staked and the number of purchasers. If the Blueprint is incorrect, the purchase price tokens are automatically returned to all purchasers. Furthermore, an additional share of all the staked tokens are distributed to the first 7 users that purchased the Blueprint.
Why choose this platform?
A ‘hedge’ in relation to cryptocurrency is typically an investment that reduces the risk of antagonistic price movements in an asset. More generally speaking, a hedge consists of taking an offsetting position in a related security. The HedgeTrade tokenized app gives traders of all skill levels potential ways to hedge their risk when trading cryptocurrencies:
- Experienced traders can earn from sharing their knowledge plus they are able to stake varying amounts of tokens to potentially increase their earnings.
- Novice traders can participate in crypto trading utilizing the HedgeTrade platform, which incentivizes more experienced traders to share accurate predictions.
For the team at HedgeTrade, we see this platform as a way to create a prediction-centric market for price fluctuations. We provide users with a unique way to hedge their risk by providing access to valuable trade data produced by the HedgeTrade community.
We hope our How HedgeTrade Works Guide has given you a clear glimpse of what awaits you on the HedgeTrade platform. Join us today!