How to avoid losing money when bitcoin price fluctuates?

[Marathonbet]

I started using bitcoin for playing online poker and sports betting last summer. Over the past few months the price of bitcoin has generally been moving upwards so I haven't always been in a rush to convert my BTC back into dollars after a cashout has been processed. However, at the start of January I withdrew about $2,000 dollars in BTC from my betting accounts to cover some expenses but I didn't covert the bitcoin back into dollars straight away. Over the course of the last week the price of bitcoin fell from $1,150 to $750 so I lost about $500.

I'm wondering if you guys use any strategies to hedge your losses other than converting straight to dollars as soon as the bitcoin hits your wallet?

 

[lvbet]

I guess the best strategy is to never hold more bitcoin than you can afford to lose. If you are holding $1,000 worth of bitcoin that you will need at the end of the month to pay the rent then you are taking a big risk because the price in the short-term might go down to $700 and you might find yourself homeless.

If you are someone who has a decent amount of savings in fiat currencies like the dollar, euro or pound then you are less concerned by these price fluctuations. The general trend is up if you look at the price over a 6 month period so you will likely recover any losses if you can afford to hold onto the bitcoin for a longer period.