The crypto industry is an up-and-coming niche where you can make a fortune. But if you neglect risks like volatility, financial ruin is almost imminent and you can lose not just the money but sanity.
All because many investors are betting big without any safety measures.
However, you can extract value from volatility and turn the table with Libertify’s performance-driven risk adjustment strategy tailored to your risk profile.
Here’s how you can avoid substantial financial losses with a smarter buy and hold.
Out of all the strategies, the most popular strategy to this day amongst retail investors is the buy & hold. Essentially, it means you remain disciplined and stay in the game no matter what happens in the market.
It doesn’t matter if the fall is 80% or 20%. You remain.
However, while a small drop is easy to tolerate, large negative changes trigger concern.
You keep worrying and put yourself on the verge of breaking the crucial rule of Holding – “Hodling”. Even if you stay, you’re riding the crypto rollercoaster blind, and have no clue when the prices shall rise up enough to surpass the losses you’ve taken.
However, just like smart devices that over the past two decades became a normal part of our daily lives, there’s fianlly a Smart buy & hold, a.k.a. Libertify’s performance-driven risk adjustment strategy. It offers you a smart layer over the buy & hold that knows when to stay in the game and when to leave.
How? Let us explain.
Performance-driven risk adjustment strategy is an approach to investing that delivers higher returns by speeding up and slowing down coin accumulation when necessary, and does so according to a person’s risk tolerance.
Every person has their own appetite for risk, and what suits you might not suit your friend.
For instance, you might prefer climbing with a rope and harness while your friend is fine without it.
The rope does slow you down but acts as a safety tool and provides the confidence you need to get to the height you aim for.
Putting speed over protection, your friend might prefer to get there quickly and risk falling. That’s what smart buy & hold is about – learning your risk tolerance and adjusting your trading strategy accordingly.
So, how can Libertify understand what you need? To figure that out, we run a questionnaire to determine your tolerance to risk relative to your appetite for gains.
Every person has their own risk profile that encompasses gain objectives and individual characteristics.
For instance, Warren Buffet utilizes a very conservative approach to investing while Elon Musk is a risk taker. Their risk profiles are not the same as their investment decisions.
After years of work and analysis, we came up with four distinct risk profiles: Conservative, Moderately Conservative, Moderately Dynamic, Dynamic. Here’s what they offer.
Conservative Profile is about keeping things stable. If this is you, you plan everything for the long term and prefer lower risks.
With this strategy you may forfeit a degree of performance but what you get instead is a peace of mind and profit, but without a being exposed to the unbearable risks.
Moderately Conservative Profile is about planning and betting. It fits you if your objective is not only to get low-risk returns, but accept risk in small doses. Essentially, it’s similar to Conservative profile but you get a higher return with a higher level of risk.
Moderately Conservative Profile is for risk takers. It is your best way if you truly want to spice things up and feel fine with losing over more than 20% of your portfolio value in the short-tem. In a nutshell, you expose your assets to rip the benefits of volatility rather than avoid it.
Dynamic Profile is for ambitious risk takers. If you are ready to bet big without of fear of losing a big chunk over the short term, this profile is for you.
This performance-driven risk adjustment strategy is about taking enough risk to aim high but not end up in a pitfall.
So you do risk, but Libertify has your back. And when the market is up and accelerating, Libertify ensures the returns are way higher compared to the buy & hold.
Investing has never been as popular as it is now. Endless opportunities and low entry barriers gave many people a chance to build a fortune. That is especially true for crypto, where anyone can become an investor.
However, while investing seems simple, it requires a strategy tailored to a person’s risk profile. The failure to choose the appropriate investment strategy leads to disappointing results. That’s precisely why performance-driven risk adjustment strategy is crucial in this day and age.
That’s precisely why adjusting risk is crucial in this day and age. Thus, applying a risk adjustment strategy to investment is very important. The only way to do so is to understand your risk profile and decide whether you are a Conservative, Moderately Conservative, Moderately Dynamic, Dynamic.
@ 2023 Libertify SAS. All rights reserved.
@ 2023 Libertify SAS. All rights reserved.
Investing in digital assets is highly speculative and volatile, and cryptocurrency is only suitable for investors who are willing to bear the risk of loss and experience sharp drawdowns. Please note, all past performance or hypothetical/backtested performance as expressed on this site, is not indicative or a promise of future performance.
Investments in digital assets and cryptocurrency are Not FDIC Insured, Not SIPC Insured, Not Bank or Government Guaranteed, and May Lose Value. Before investing consider your investment objective, risk tolerance, Libertify’s fees and expenses and any trading related fees before investing. Although the goal of Libertify and the crypto seatbelt is to reduce volatility in your portfolio, there is no guarantee that your portfolio or account will not lose value, including risk of loss of your entire principal invested. Your account may experience significant drawdowns and there is no guarantee that Libertify will outperform a buy and hold strategy.
