Covering Hedged Accounts within CoinJar and how they work.
Hedged Accounts explained
A CoinJar Hedged Account allows you to temporarily store your bitcoin in the form of an alternative currency (GBP, AUD, EUR, USD) - all of which are updated in real-time to global currency values. This can help protect your stored value from price fluctuations, and is convenient if you wish to use bitcoin, but don't want to actively monitor for price changes.
As a real-world example, this would be similar to converting an amount of Australian dollars into US dollars, in anticipation of a fluctuation of either currencies' value.
Once set up, Hedged Accounts are shown alongside your regular accounts within CoinJar. You can easily transfer funds to and from a Hedged Account using your Everyday Bitcoin, Cash Account, and any other Hedged Account.
The following currencies are available as Hedged Accounts. Please keep in mind that CoinJar does not currently support all of these currencies outside of Hedged Accounts.
- Australian Dollar (AUD)
- US Dollar (USD)
- Great Britain Pound (GBP)
- Euro (EUR)
When moving funds between your different currency accounts within your CoinJar, there may be a small fee for the conversion. Please visit our dedicated transfer fees page for details.
Are Hedged Accounts for me?
CoinJar Hedged Accounts are an effective way to manage the value of your bitcoin in a familiar currency. Once you've transferred bitcoin into a Hedged Account, the amount of bitcoin will fluctuate depending on current prices, however the value will always remain set to that account's currency.
While having your funds stored in a Hedged Account can protect their value if the bitcoin price falls, you may miss out on potential gains should bitcoin's price rise.
As follows is a basic scenario of how a CoinJar Hedged Account can help protect your bitcoin despite price fluctuation.
Updated: 18 Feb 2016 (AS)
Reviewed: 18 Feb 2016 (AS)