Risk adjustment and buy and hold are two different investment strategies.
Many people believe that once they invest in a particular cryptocurrency, they must hold 100% of that coin throughout their investment journey.
As a result, they suffer the full 100% of the drop every time the market goes down and enjoy the full 100% of the rise when the market goes up.
However, there is an alternative approach that involves adjusting your position size according to the level of volatility. This is a risk management technique that can help protect you from bearing the full impact of the downside. Naturally, many people prefer this approach, they just don’t know how.
Risk adjustment is a risk management technique, a method used to account for the potential risks in an investment. It involves analyzing the potential risks of an investment and then adjusting the investment to account for those risks. However, this is complex to do and requires professional knowledge, tools, and cool headed decision making.
With Libertify’s AI risk management engine, risk adjustment is done on a per-asset level, usually every 1-2 days, to adjust and adapt to the market fluctuations. This is done by increasing or decreasing your position in the asset, and allocating the rest to stable coin. In other words, you can be partially in and partially out of the market simultaneously depending on its volatility.
This allocation between asset and stable coin is 100% customized to your risk level, a tailored approach that helps to manage your risk exposure and ensures that you benefit from market growth while protecting yourself from potential losses.
Although risk adjustment and buy and hold offer different approaches, both strategies have their own advantages and disadvantages.
However, besides from avoiding 100% of the downside, there are many advantages of using risk adjustment over the buy and hold strategy:
01 – Risk adjustment allows investors to more accurately assess the potential risks of an investment. By analyzing the potential risks of an investment, an investor can make more informed decisions and potentially avoid making investment moves that are too risky.
02 – Risk adjustment helps investors manage their portfolio more effectively. By adjusting the portfolio to account for potential risks, an investor can reduce their exposure to those risks and protect their investments from potential losses.
03 – By reducing the overall risk of of an investors portfolio, risk adjustment improves their chances of achieving their investment goals.
04 – Risk adjustment is adaptive to changing market conditions. By regularly reviewing and adjusting their portfolio, an investor can potentially take advantage of opportunities as they arise and avoid potential pitfalls.
05 – Risk adjustment can help investors sleep better at night. By reducing the risks in their portfolio, an investor can potentially avoid the stress and anxiety that can come with making risky investments.
Risk adjustment is now accessible to all.
Risk-adjusted trading is a complex process that has traditionally been limited to highly trained investment professionals. This is because it requires:
If you are not a seasoned trader, risk adjusting sounds daunting. But you can see how it’s a necessary endeavor. The question is however, how could you possibly do to it without the training and while maintaining your day job? That’s why we established Libertify.
With Libertify, you can now trade risk adjusted in a single click. Libertify will monitor the markets, detect risks and opportunities, and make the risk-reward calculations for you – all in real time and according to the your personal tolerance to risk.
Risk adjusted investing is now available to all, at extremely affordable rates. To manage your risk, and enjoy all the benefits start here.
@ 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.
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, Crypto Seatbelt’s fees and expenses and any trading related fees before investing. Although the goal of 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 Crypto Seatbelt will outperform a buy and hold strategy.
