to hedge means to remove the risk of financial losses in the event of decline in value. http://en.wikipedia.org/wiki/Hedge_%28finance%29

By definition hedging protects from loss at the expense of limiting gain.

I suspect author means delta hedge, one that protects from decline in direction of the price.

Forward of future contract with another party accomplishes it, but introduces counter-party risk.

Clearing house mitigates this risk, but there isn't one that I know of as of this moment.

We just have to wait until bitcoin gets bigger and more secure to store.

Until than limiting yourself to the % of exposure of your total investable assets is a good way to proceed.