Investing takes a long-term approach to the markets and often applies to such purposes as retirement accounts. Trading involves short-term strategies to maximize returns daily, monthly, or quarterly.

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. This can involve a variety of different techniques, such as diversifying a portfolio or hedging against potential losses. 

Investing is an excellent way to save for a pension or achieve financial independence. If done correctly, it alleviates all of life’s concerns, making you feel at ease, content and finically stable. Unfortunately, many investors come with high expectations and leave empty-handed. Usually due to bias. Overcoming them therefore, would be a glorious victory against biology.

Libertify generates more returns risk-adjusted than a Buy & Hold strategy on any crypto asset (while protecting the investor from excessive volatility). How do we do it?

For the past several years, the crypto industry has experienced several major bear markets that pushed the prices so low they crushed not only wealth but also families. Some hugely popular coins, like Terra Luna, and FTX’s FTT token never recovered and lost 99.9% of their value.

What comes to mind when you think of volatility? Unpredictability, uncertainty, opportunity, fear, or fortune? 

When it comes to investing in crypto, many prefer to buy the assets and hold them for a long time in the hope that 20 years or so from now they will multiply x100. But is there anybody who knows exactly what will happen in 20 years from now? Are there any guarantees they will grow versus crash like many others? Just look at the epic Terra-Luna plunge, which wiped out hundreds of millions of dollars of personal wealth. 

The crypto market is a novel space with a virtually non-existent entry barrier. You can start right off the bat without having a license or proper training. All you need is to register on the crypto exchange or create a DeFi wallet, and there you go – you can buy the assets that you want. 

You’ve probably heard of “rose-tinted glasses,” an expression describing an overly optimistic attitude toward the world. It’s great to be an optimist in the real world, but it’s vital not to fall into the hands of fake hope when it comes to financial markets. In fact, being skeptical is good and highly recommended when you invest. That way, you will be more rational about your decisions and won’t rush with judgment. Otherwise, you risk becoming a victim of optimism bias, an investor’s worst enemy.

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. 

Volatility is a bitch, which is especially true for the crypto market. Unregulated and unguarded, it swings back and forth, making investors panic and walk away with nothing. But it doesn’t have to be this way. After all, why not protect your money while simultaneously deriving a better performance out of a risky environment? Well, fortunately, a performance-driven risk-adjusted strategy is here to help. In fact, it is essential if you are a serious long-term holder, and here is why.

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.

Whether you are new to blockchain or have been active in the crypto world for the past decade, you have come across “Hodling”, a.k.a. the buy & hold. Today, this investment strategy is at its pinnacle thanks to a fan base, a community of “diamond hands.” Its members preach abstention from selling crypto assets at all costs for the sake of gaining 10x and more in the long term. They have an unwavering belief that the price will eventually go up. But is this really a viable strategy in today’s market?

Decision-making is a complicated process. It requires a lot of brain power and time to eventually take action. Hence that’s why humans can’t be 100% rational beings. However, we have to make hundreds of decisions every day, from picking an outfit for wearing throughout the day to submitting tax forms. It’s impossible to take hours and hours to crack every single problem. There’s simply not enough of them. 

Wondering what it’s like to be a Meerkat and how your performance could look?

The Meerkat is an obsessive planner that hates any type of uncertainty and risk. Let’s compare this risk profile with a Buy & Hold portfolio without a risk adjustment mechanism.