Six position strategies in the current financial environment

In the current global financial environment, whether it is the emerging blockchain Web3 industry or the traditional financial industry, they are all experiencing confusion, opportunities and undercurrents in a century-level fog. With the rise of digital currency and the widespread application of blockchain technology, the investment landscape is also quietly changing, and the holding styles of traditional institutional investors are gradually diversifying, and the choice of asset allocation strategies is becoming more and more important.

In order to cope with this challenge, investors need to understand the characteristics and risks of various possible investment strategies, and analyze the advantages and disadvantages of various allocation styles in the current financial environment, so as to help us make the most suitable investment strategy in the current financial environment. style decisions. This article briefly introduces six different asset allocation models, and discusses the advantages and disadvantages of various allocation styles in the current financial environment, as well as the corresponding risk-return characteristics.

1. Balanced flow configuration: Gold 10%, cash 50%, BTC 15%, USDXXX 15%, ETH / Altcoin: 10%

This combination strategy is suitable for investors who are sensitive to risks and seek relatively stable returns, and invest in a relatively balanced amount of risk diversification and value preservation and appreciation. The addition of gold provides a traditional relatively safe means of hedging, while cash assets guarantee the liquidity of funds. Part of the proportion of BTC is relatively the most stable target in the blockchain field (the volatility is also large), and the USDT/C stable currency is relatively more flexible in entering and exiting the market. Its volatility is relatively low, but the risk is linked to national debt. And 10% of the ETH/Altcoin altcoin allocation increases the potential value-added space for the investment portfolio (the risk of up and down fluctuations is relatively higher).

2. Hard currency allocation: Gold 50%, BTC 30%, Silver 20%

This strategy tends to guard against possible inflation risks. Among them, gold and silver, as hard currency assets in traditional industries, can provide relatively stable value preservation effects during periods of economic instability. BTC has gradually been regarded as "digital gold", which has relative long-term appreciation potential and high short-term volatility risk. This strategy can provide relative stability during periods of severe market volatility, while retaining some Bitcoin as potential growth space.

3. Cash flow:

100% (60% of Cash + stored cash, 20% of digital cash, 20% of stable currency)

This configuration style is a safe defensive strategy when the market is foreseen to be unstable or expected to fall sharply, emphasizing liquidity and risk prevention and control. It is suitable for investors who are pessimistic about market expectations or want to control risks. Unlike gold, cash has higher liquidity and flexibility than gold. At the same time, electronic cash (such as digital renminbi, etc.) and stable coins can also bring the versatility and convenience of the digital world.

Allocation that relies entirely on cash assets is usually applied to investors who are pessimistic about market expectations or expect to control risks. It can avoid major losses when the market falls, but this kind of allocation also needs to bear the current financial environment, different countries, and the risk of bankruptcies of investor storage banks in black swan events. For example, Signature Bank, a favorite of blockchain industry project parties, went bankrupt this year.

4. Pure desire to lie flat flow BTC 100%

This allocation strategy is suitable for investors with extremely high confidence in Bitcoin. Although higher returns may be obtained in the long-term in the future, it is also necessary to bear the extremely high market volatility risk in the current world. This strategy requires investors to have a very deep understanding of the history, development and development of Bitcoin, and understand and be able to accept the possibility of large fluctuations in the value of BTC in the short term.

This is an investment strategy that is extremely optimistic about the future value of Bitcoin. It is suitable for investors who lie flat and bet on the future value-added potential of BTC.

5. Half and half flow:

Cash 50%, Altcoin Low Cap 30%, U 10%, BTC 10%

The difference between this investment allocation method and the first one is that it is more optimistic about the Altcoin category with low market capitalization. With a higher proportion of cash as the backing and mainstream digital currency, investors who choose this allocation tend to be willing to accept Higher volatility risk, to pursue a larger proportion of high-return returns. Investors recommending this configuration method need to have a deep understanding and synchronization of the background, development progress and economic model of Altcoin, and be willing to bear the risk of zeroing.

This allocation strategy emphasizes investment in diversified digital currencies, especially Altcoins with lower market capitalization.

6. Bet on underestimating future flows, Altcoin 80%, U 20%

This strategy demonstrates extreme trust in the Altcoin chosen by the investor himself. This method requires investors to have a deep market understanding and high risk tolerance. It has a strong ability to predict and respond to market changes, especially for the buying point and trend. If the choice is correct, its income may be extraordinary (such as GMT, CFX, etc. even if there is a short-term bear market with 20 double the high volume increase), but so is the risk of zeroing or large-scale losses (such as buying at a short-term high, or a situation similar to the LUNA bottomless pit in 2022).

This is a high-risk but potentially high-return investment strategy. A large amount of investment in Altcoin means that investors are willing to bear possible huge losses.

Summary:

This article introduces six different styles of position models, the proportions of which are not rigid and fixed, but can be adjusted flexibly. Although the digital currency market has huge growth potential, its price volatility is also very high. Therefore, investors must remain rational, avoid over-investment, and be prepared to deal with possible market fluctuations at all times. Any investment strategy is accompanied by risks. Investors need to consider their own financial status, market changes, risk tolerance, investment goals and living conditions when choosing an appropriate holding style. In particular, it is necessary to know what kind of person you are and your weaknesses. High-risk investments may bring high returns, but the possibility of loss is also greater.

Investment needs to be carried out in a relatively calm state. You must not invest in the hope of earning a fortune through investment due to temporary financial difficulties or debt repayment expectations. There is a high probability that you will lose your pre-existing funds.

Special statement: This article is only a science popularization and sharing explanation of different types of holding styles, and there is no specific nature of investment trading advice. Investors are asked to judge according to their own characteristics.