Is your portfolio plummeting due to the most recent market dip? Don’t worry, you’re not alone. The volatile swings of the crypto market affect us all but there is a way to minimize risk and protect your investments. By taking out a crypto backed loan and re-investing into stable assets, one can hedge their portfolio and survive the next crypto winter.
HOW TO HEDGE: IS YOUR PORTFOLIO TOO RISKY?
Take a long hard look at your crypto portfolio. What did you see? Do you see a pedal to the metal, full throttle portfolio built for only massive gains? Or do you see a play it safe portfolio designed for minimal growth? Well, hopefully, you don’t see either. A properly designed portfolio has a mix of both high risk, high rewards cryptos and a majority of safe bets.
Some analysts say you should have 70% of your investments in safe bets, 20% in slightly riskier assets and then 10% in high performance but high-risk assets. This is really the ideal set up to have when the market turns on you. One quick and easy way to do this is through crypto backed loans.
USING A CRYPTO BACKED LOAN TO HEDGE YOUR PORTFOLIO
Unless you want to exit the cryptocurrency 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 are in big trouble during a bear market. Therefore, consider taking out a crypto backed loan and reinvesting that money into something a little more stable.
On crypto lending platforms, you can use your crypto as collateral, get cash and then turn around to invest it in a number of safe, but profitable cryptos. USDT and other stablecoins are a big hit right now as they are supposedly backed by real fiat currency. Tether, for example, states that 1 USDT always equals $1. Another wise investment to make is an exchange token. Exchanges make money in both bearish and bullish markets so their tokens usually rise in value at a steady rate.
Of course, these coins/tokens are not 100% safe from risk. Nothing is. But reinvesting your portfolio into the more stable options is a wise choice to protect yourself from the bulk of risky situations.
WHAT CRYPTO BACKED LOAN PLATFORM IS THE BEST?
There is a variety of crypto 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 industry for a variety of reasons.
For one, it has options. YouHodler accepts BTC, XRP, ETH, LTC, BCH, BSV as collateral with more on the way. On top of that, it advertises an industry best loan-to-value ratio of 80% and with USDT as both a pay-in and payout option, transaction times occur within minutes. So for those looking to get a loan and hedge their portfolio before it’s too late, then give this platform a try.