Is your portfolio in free fall due to the recent market decline? Don't worry, you're not alone. The volatile fluctuations of the crypto-currency market affect us all, but there is a way to minimize the risk and protect your investments. By taking out a crypto-backed loan and reinvesting in stable assets, you can hedge your portfolio and survive the next crypto winter.
HOW TO HEDGE: IS YOUR PORTFOLIO TOO RISKY?
Take a close look at your crypto-currency portfolio. What do you see? Do you see a runaway portfolio built for massive gains? Or do you see a conservative portfolio designed for minimal growth? Well, hopefully you see neither. A well-designed portfolio has a mix of high-risk, high-reward cryptos and a majority of blue chips.
Some analysts say you should have 70% of your investments in safe assets, 20% in slightly riskier assets and finally 10% in high performing but high risk assets. This is really the ideal setup to have when the market turns against you. A quick and easy way to do this is to use cryptocurrency-backed loans.
USE A CRYPTO-CURRENCY BACKED LOAN TO HEDGE YOUR PORTFOLIO.
Unless you want to leave the crypto-currency market altogether, the best plan to protect your wealth is to minimize risk exposure. If your portfolio only consists of Bitcoin and Ethereum, then you're in big trouble during a bear market. Therefore, consider taking out a crypto-backed loan and reinvesting that money in something a little more stable.
On crypto currency lending platforms, you can use your crypto currency as collateral, get money and then invest it in a number of safe but profitable crypto currencies. USDT and other stablecoins are very successful right now, as they are supposed to be backed by real fiat currency. Tether, for example, claims that 1 USDT is still equal to $1. Another smart investment to make is an exchange token. Exchanges make money in both bull and bear markets, so their tokens usually increase in value at a steady rate.
Of course, these coins and tokens are not 100% risk-free. Nothing is. But reinvesting your portfolio in the most stable options is a wise choice to protect yourself from most risk situations.
WHAT IS THE BEST CRYPTO-CURRENCY BACKED LENDING PLATFORM?
There are a variety of crypto-currency backed lending platforms to choose from, but not all of them are worth your time and effort. Some of them offer outrageous interest rates and low loan-to-value ratios. But YouHodler is quickly making a name for itself in this sector for a variety of reasons.
First, it offers options. YouHodler accepts BTC, XRP, ETH, LTC, BCH, BSV as collateral, with more on the way. On top of that, it advertises an industry-leading 80% loan-to-value ratio, and with USDT as an entry and exit option, transactions are done in minutes. So, for those looking to get a loan and hedge their portfolio before it's too late, try this platform.