Often people come to crypto in hopes to get very high returns within a short time frame. Yet, most still prefer to buy & hold despite 1) the market’s risks and 2) a big chance of losing everything.
Nevertheless, the game is changing and more and more people are looking for ways to sustain financially in the crypto market over the long term and avoid huge swings.
But sustaining (in other words, surviving the huge drawdowns) long-term is a challenging task – you must have tons of patience and emotional discipline. Unfortunately, too often people give up once the bear market hits. The reason is simple – they haven’t found the right approach and expose themselves to dangers that an experienced investor could have avoided.
But you don’t need to go through such a painful journey. All you need is to to find a way to cut volatility and have emotions in check.
Let’s talk volatility. Essentially, volatility is the size and frequency of price swings. While stocks can move around 1% in both directions, crypto can jump and fall as much as 5%! Now, the figure seems small, but imagine -5% every single day for two weeks. This compounds into huge losses, and very few users can sustain that.
So, in the long run, investors experience several dramatic uptrends and downtrends. It’s possible to argue that the overall market will move up over 20 years. But will you have enough nerves to withstand the market downfall of 80%?
What if you face 50/50 odds and have to make a decision now whether to sell or stay? Can you make a rational decision? The majority of people can’t, and that’s a huge reason why they can’t sustain.
Overall, volatility is one big factor that makes investors anxious. What you need is to find a way to cut it, thus protecting your funds. Then, you will enjoy a stress-free life.
So, it’s a bear market, you were hoping for a different outcome since everything was rapidly rising, and now all that is left is hope. Now you face a situation when your funds seem to be evaporating. Are you actively managing them or are you just sitting back and passively watching?
Either way, it isn’t easy. Most users don’t have a shoulder to lean on. They are on their own, making their own decision, blindly picking the road.
After all, crypto is a new asset class, and while we are certain it’s going to stay, we can’t really predict how it will evolve. For this exact reason, it’s mentally challenging to take leaps of faith over and over again.
So it is simple – if you want to sustain long term, find yourself an advisor to help relieve yourself from the responsibility of making tough financial decisions every time the market starts to move.
Sustaining and maintaining a positive performance over a long period requires a safety net. Without one, you will have to brace yourself for the large price swings, the losses that come with it, or the possibility of a wipe out. A safety net keeps you in the game at all times so when the market bounces back, you still have money invested to enjoy some upside. But, how do you manage your safety net?
There are many options out there – you can try trading bots that offer a universal, one-strategy-fits-all solution for a $25-$400 monthly fee or you can try your luck by finding an influencer with the same financial situation to you.
However, we believe the key to positive performance is a fully personalized approach. The wealthy preserve their capital not because they spend hours and hours thinking about a decision but because they have advisors that know them personally, have in-depth market knowledge and the ability to make unbiased decisions. And good advisors are expensive. For a regular retail investors with under $500K, they are generally unattainable.
But why do you need them if you can get Libertify’s AI crypto investment advisor which offers you a crypto seatbelt?
Unlike many other competitors, we have a team with over 50 years of banking experience combined. We use our banking knowledge for the good of crypto users and apply the best asset management techniques to bring an affordable and effective asset management solution to a wider public. See for yourself, start here.