How can franked shares be used as a hedge against cryptocurrency volatility?

4 answers

• Shubham PradhanDec 29, 2020 · 5 years ago
  Franked shares are shares of a company that have already had taxes paid on the dividends they distribute. These shares can be used as a hedge against cryptocurrency volatility by providing a stable source of income. When the price of cryptocurrencies is highly volatile, investors may choose to invest in franked shares to offset potential losses. The dividends received from franked shares can help to balance out any losses incurred from cryptocurrency investments. By diversifying their portfolio with franked shares, investors can reduce their exposure to the risks associated with cryptocurrency price fluctuations.
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• Alexey ZudWorkJun 13, 2024 · 2 years ago
  Franked shares, also known as dividend imputation shares, can act as a hedge against cryptocurrency volatility. These shares are issued by companies that have already paid taxes on their profits and distribute dividends to shareholders. By investing in franked shares, investors can benefit from a stable income stream, which can help offset any losses incurred from cryptocurrency investments. The dividends received from franked shares can provide a consistent source of cash flow, even during periods of high cryptocurrency price volatility. This can help investors maintain a balanced portfolio and reduce the overall risk associated with cryptocurrency investments.
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• Mạnh Đức VũJan 27, 2026 · 9 days ago
  Franked shares can be used as a hedge against cryptocurrency volatility by providing a stable source of income. When the price of cryptocurrencies is highly volatile, investors may choose to invest in franked shares to mitigate potential losses. By investing in franked shares, investors can diversify their portfolio and reduce their exposure to the risks associated with cryptocurrency price fluctuations. Additionally, franked shares often pay dividends, which can provide a consistent income stream even during periods of high cryptocurrency price volatility. This can help investors maintain a balanced portfolio and offset any losses incurred from cryptocurrency investments. At BYDFi, we believe that diversification is key to managing risk in the cryptocurrency market, and franked shares can be a valuable tool in achieving this.
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• FlippyMar 26, 2025 · 10 months ago
  Franked shares are a type of investment that can be used as a hedge against cryptocurrency volatility. These shares are issued by companies that have already paid taxes on their profits and distribute dividends to shareholders. By investing in franked shares, investors can benefit from a stable income stream, which can help offset any losses incurred from cryptocurrency investments. The dividends received from franked shares can provide a consistent source of cash flow, even during periods of high cryptocurrency price volatility. This can help investors maintain a balanced portfolio and reduce the overall risk associated with cryptocurrency investments. It's important to note that while franked shares can help mitigate risk, they should be considered as part of a diversified investment strategy.
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