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Expand your economic prospects, in a safe and understandable way, together with the Rewelclub Team
There are two very different ways of approaching the world of investments and cryptocurrencies. The first is very popular and well known, it is trading.
These are purchase and sale operations, generally carried out very quickly (from a few minutes to a maximum of a few days) carried out as they say both in long and short positions, that is, both buying the cryptocurrency and selling it short.
The idea behind this operation is to identify some type of market inefficiency and then want to use it to "beat" the market itself. We can therefore say that it is a “trader against market” challenge. Trading can offer significant returns immediately, this is true, but it is equally true that 95% of trading accounts cancel their value within a year!
In general, in fact, the more time passes, the more the risk increases that the identified inefficiencies are reabsorbed and therefore that the operations end with a negative sign, even canceling the entire capital. The second way of approaching this world, on the other hand, is "management", typical of traditional financial investments, that is, portfolio allocation.
This is a breakdown of assets in different assets and in different cryptocurrencies, in order to diversify the risk, modifying the portfolio allocation through not too frequent and not too radical rebalancing.
The goal is to follow the growth of a Darwinian system, made up of millions of agents who all want to make the system grow. This is our approach!
In this context, therefore, time is no longer an enemy, but our greatest ally.
The model we have developed provides for weekly rebalancing, aimed at slightly increasing the position of those cryptocurrencies that are undervalued, believing that in the following months they can recover the lost ground and symmetrically reduce the position of those cryptocurrencies that have already raced a lot.
By doing so, we aim to optimize results in the medium term, taking as a reference a time horizon of at least three / four years.
We have also introduced a new concept of automatic weekly liquidation on a fixed percentage basis with respect to the value of the assets, in order to constantly free up liquidity that can be reversed in total serenity to the customer. Obviously, even this type of investment is not without risk, as if the cryptocurrency market were to go down for a long time without recovering, we would risk having reduced the portfolio of assets, following the weekly liquidity withdrawals, to the point of not being more able to recover.
However, we have calibrated the parameters of our model so that this eventuality is as remote as possible, maintaining an average risk profile that is always lower than any existing trading activity.