How to Hedge Yourself Against the Volatile Crypto Markets
You have been watching the crypto market daily now, tracking it’s every movement with your smart phone, hoping for a change in direction. Some might call it an obsession–but to you it’s your investment, it’s your hard work you’re watching move up and down just like a rollercoaster. You worked hard for that money and believe that there is still hope, which is why you stay glued to your phone.
Anyone that has invested in the market whether it’s cryptocurrency or the NYSE understands the need to constantly check the markets, just to see where the price is at, even though you checked 10 minutes prior. The more volatility in the market, the more you check your phone.
The challenge of the crypto markets in comparison to the stock market is it’s difficult to predict how governments will react to digital currency, or if they will react at all. Will they be friendly? will they regulate it out of existence? Those questions are what drive the volatility of the crypto markets, nobody knows how much resistance blockchain will face from congress to the SEC.
The second challenge that cryptocurrency faces is manipulation of the market by “spoofing” and “wash trading.” There are a number of groups that are guilty of this illegal practice, but due to the fact that cryptocurrency is still so unregulated they are getting away with robbery. The manipulator drives the price down so he can buy low or short the trade, after he buys low he then manipulates the market to drive the price back up so that he can sell high. Fortunes are being made, even under illegal practices.
Hedging your investment
In these unpredictable times in the crypto space you should consider protecting your gains. Hedging yourself in the market doesn’t mean you have to invest in assets that have an inverse relationship with each other, although that can sometimes be a good idea. You do want to diversify your portfolio of investments, and you do want to invest in different assets that aren’t connected so that if one goes down they don’t all go down. You don’t want your entire investing portfolio in an unpredictable market, it’s nice to have some of your nest egg in a predictable market with steady income. In this volatile crypto market consider having some of your gains in a different market that will increase regardless of what happens in the crypto space.
The crypto markets could very well level off with time as more mature investors enter the space with a strategy that aims for long term gains. In the meantime, while you are waiting for the volatility to level off and for the market to mature consider hedging yourself and investing your Ethereum in tokenized real estate assets.
Benefits of Tokenization
Tokenization isn’t a new concept, it’s been going on for thousands of years in cultures all over the world. Tokens create accessibility and simplicity when trading value for value. It’s a mutually trusted medium of exchange that can be traded easily among its traders. Beads, precious metals, Cowrie Shells, and Ethereum all have one thing in common, they have all been used as tokens of exchange at different time periods in human history.
The significance of digital tokenization can’t be overstated; it’s simply transformational because of its unique ability to divide assets into bite size pieces. The ability to take an asset and divide it up into smaller individual parts that can be traded in the blockchain creates efficiency, greater utilization, and income streams to people that were denied access in the past. The second significant breakthrough that makes blockchain tokens unique as a medium of exchange is the security and ERC-20 compliance embedded in each token.
Each block in the chain contains the history of the transaction and the link to the previous block validating the transaction firmly recording the history without possibility of erasing or changing the data. This data becomes immutable in the digital ledger creating trust in the exchange and eliminates costly third parties. Because the blockchain is decentralized it’s contained on computers around the world, it can’t be changed once recorded, which creates confidence and efficiency among traders. We are only in the beginning stages of what might be the most disruptive technology in the last quarter century.
Tokenized US real estate allows you to hedge against volatile markets and provides a place of safety from the ups and downs of speculators and manipulators. The US real estate market has been steadily increasing in value since 1968 and isn’t tied to the markets. Not only is real estate a safer investment with tangible value, it’s also an investment that can generate income and gains from capital appreciation.
RealtyReturns
Platforms like RealtyReturns are democratizing US real estate investing by allowing cross-border investors to invest in tokenized real estate through ERC-20 compliant security tokens. The integration of the blockchain into the traditional real estate investing model provides asset-back token and liquidity to investors all across the globe.
Each token represents legal ownership in fractional real estate with access to income generating properties and capital appreciation. Investors around the globe that have ETH will be able to invest as little as 2 ETH into fractionalized US real estate through the RealtyReturns online marketplace, and bypass the working with banks, attorneys, brokers, title insurance companies, and escrow.
Democratizing global access to investment grade commercial real estate using the blockchain. Visit RealtyReturns.io and join our Telegram group https://t.me/realtyreturnsglobal
Trevor Whiting
VP, Investor Relations
RealtyReturns
Experienced Sales Leader of over 14 years and has started offices in London, Toronto, and the US. He was VP of Investor Relations of RealtyMogul where was responsible for revenue growth, sales operations, and growth initiatives. Under his leadership, he developed a sales playbook that resulted in 2x growth.
