Things are going great – you invested a few months ago and now see the graph climbing up as rapidly as ever.
You cheer in enjoyment. But the bad news comes – experts talk about the bear market coming soon. Uncertainty is hanging in the air.
“Do I need to cash out or stay for a little longer?” – you wonder before making a final decision. Here are four things to keep in mind to deal successfully with crypto market uncertainty.
The crypto market is known for its huge price swings that can leave you with a hefty profit or in financial ruin.
Often, first-time entrepreneurs expect to get rich overnight. So they try to manipulate the market and look for some sophisticated techniques with a 100% result guarantee.
Well, that’s a dead end. Accept that you can’t control the crypto market. It goes in cycles and cannot constantly grow exponentially. Bull markets come after bear markets and vice versa.
That’s the nature of the market, and your goal is to find the right entry point and avoid getting exposed to too much risk.
But do you know when to get out? Did you establish exit and entry points?
Choosing the right asset is vital for getting stable returns.
Too often, users buy the hot cryptos marketed by influencers, taking way too much risk. Eventually, when the bad news comes, their assets are performing worse than the top coins.
That’s no coincidence – every holder is concerned about future growth prospects. Consequently, uncertainty increases even more.
The situation is very typical when it comes to coins that demand belief and nothing more, like meme coins, for instance. Users are buying them up in hopes of a big pump, and often a big pump turns into a pump and dump, a well-known Ponzi scheme where those in the know trick those who don’t know.
So, to avoid uncertainty, it’s important to be aware of what you are investing in. Don’t fall in love with the coin – it’s dangerous, triggers your emotions, and blocks your rationale.
Instead, approach your investments with a cold head – know your risks and tackle them accordingly.
With a proper performance-driven risk strategy, uncertainty won’t feel like the end of the world.
That’s a big one. Under uncertainty, you will never know.
Since the crypto market is known for its steep downfalls, it’s best to get out as soon as you feel uneasy. However, this approach is suitable for those who made big gains and plan to be around for the short term.
What about buying the dip? Preparing to acquire “discounted cryptos” seems wise, but a risk profile can only decide the righteousness of the decision. Ask yourself a simple question:
“If I am given $1000, will I prefer to invest with a guarantee of $500 profit or a 50/50 chance of doubling up the initial sum?” If you choose the former, it’s best not to risk too much, save what you have, and return later.
However, if you are willing to bet and a potential loss doesn’t bother you too much, you can take your chances. All in all, it all comes down to your risk tolerance.
Before you fully set up your Libertify account, we run an assessment quiz with questions like the above to understand your risk tolerance and provide the most optimal performance-driven risk adjustment strategy.
Deciding on buying and selling requires you to understand your risk profile. Do not rely on others. Everyone is different and pursues different goals.
What might be right for one might not be right for you. If you wish to survive uncertainty without psychological burden, you must know your risk profile.
Do you think Buy and Hold is the best way to win in crypto for a risk-averse person? They can surely go with it but that means disregarding the actual needs. If the market goes up again, the risk of entering the spiral of wrong decision-making is huge, and the risk-averse individual will end up buying high and selling too low. After all, it’s better to save something than nothing.
We saw that pattern repeating many times. That’s why at Libertify we believe that a tailored performance-driven risk adjustment strategy is something everyone should consider while investing in crypto. Here’s how it works.
Libertify’s performance-driven risk adjustment strategy is a way of targeting volatility and risk in the market to provide better asset performance.
It aims to adjust your risk in a timely manner by protecting your funds when necessary from the pitfalls, thus delivering stable returns.
It’s like the parachute for skydiving. Once you are in free-fall your speed keeps accelerating and you can continue but won’t reach your end goal, a safe landing, without one.
This parachute is a performance-driven risk strategy – it lets you reach your investment objective, which is profit, but with a safety net.
Here’s how it works – first, Libertify will ask you to complete a quiz to understand your risk tolerance. Based on the result, you will fall under one of the categories:
Conservative, Moderately Conservative, Moderately Dynamic, Dynamic. These categories represent your risk profile and assigned risk strategy, where Conservative is the most risk-averse, and Dynamic is the most risk-taking.
Once done, you can choose between Autopilot and Manual modes. Here’s the difference:
Autopilot: automated trades with a pre-configured authorization. In a nutshell, you connect your crypto exchange account or DeFi wallet to Libertify and give us permission to trade assets based on your level of risk.
You’ll receive notifications each time we wish to trade on your behalf and you’ll have the opportunity to stop it within an hour.
Manual: you connect your crypto exchange account or DeFi wallet to Libertify and give us permission to send mobile push notifications informing you of the trade. You’ll need to approve every trade.
Once approved, the trade is executed through your connected exchange or wallet.
To flourish through uncertainty, 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.
