I have read all the comments above.
You guys are all correct in your way.
Bitcoin is an asset that is full of volatility. Holding it or trading it is both a way to earn profits from the market. It depends on which style you are.

If you are a holder, then hedging is an important thing to do if you plan to maximize your profits or avoid any unexpected risk. To hedge your bitcoins, trading bitcoin derivatives shall be the easiest way to do that. Taking BitOffer Bitcoin Options as an example, if you hold a bitcoin, and now the bitcoin price is 10k, and you are afraid that if it will dump, then you could buy a put options contract. When Bitcoin really dumps, like decreases by 1k USD, the bitcoin you hold makes you lose 1k USD. However, the put options you buy get you a 1k USD payoff also, because the put options you buy will enable you to earn the market change directly if you choose the correct direction. Notice that only American Options allows users to do that, and that is why I only take BitOffer Options as an example, not options on deribit.

What if you want to earn money from Bitcoin but you don't want to trade or hold?
The Bitcoin financial ecosystem is developed in recent years, so many funds using Bitcoin as Underlying has been launched, like the Quantitative Fund on BitOffer, it guarantees investors capital and 20% interest. Many people may doubt it. But actually, a well-done quantitative team shall be able to set any arbitrage strategy to arbitrage from the market.
Not only BitOffer, but also Huobi Global, or traditional institutions such as Goldman Sachs are working on it.

Follow me, I would love to share more info and strategy of hedging bitcoins.