A safer way to invest in bitcoin backed by the science of complex systems

Uphold
3 min readDec 4, 2018

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Today, we are excited to announce the launch of Hedged Bitcoin, a revolutionary investment strategy, launched by Ternary Intelligence on the Uphold platform. Hedged Bitcoin is designed to dramatically reduce the effects of downturns, while keeping investors exposed to the long-term upside potential of bitcoin, one of the world’s most volatile assets.

An investor holding $10,000 in bitcoin on November 1, 2018, would have seen their holdings plummet to $6,700 by the end of November — a 33% loss on their investment in just a month. Had that same consumer invested via Hedged Bitcoin, they would have been protected from more than 70% of the drop and saved $2,400*, experiencing a much milder downturn of just 9%.

Ternary Intelligence’s backtesting over the past five years shows that the Hedged Bitcoin strategy delivers 95 percent of the average compound annual growth rate of traditional buy and hold bitcoin, with less than a third of the downside.

For those who’ve never invested in bitcoin, Hedged Bitcoin offers a safer alternative that largely eliminates entry-timing risk. For those who hold bitcoin already, the investment strategy — available exclusively on Uphold, provides a more secure way of preserving accumulated gains.

In the last five years, bitcoin has seen appreciation rates as high as 12,800%**. But it has also seen drawdowns as damaging as -85%. Hedged Bitcoin will enable consumers to tap into the enormous potential upside, while significantly reducing risk exposure.

With no minimum investment and no lock-up period, Hedged Bitcoin promises to provide an affordable mainstream investment vehicle that could democratize access to, and widen participation in, bitcoin.

The strategy uses the science of complex systems — such as herds and brain networks — to detect early signs of market instabilities — and shift customer funds out of bitcoin and into US dollars in order to avoid drawdowns.

How to get started using Hedged Bitcoin:

  1. Visit Uphold.com/en/hedged-bitcoin
  2. Sign-in to your Uphold account to authorize the app.
  3. If you do not yet have an Uphold account, you can easily sign-up for an account in minutes.
  4. Authorize the Hedged Bitcoin app.
  5. Select the amount (in USD or BTC) you would like to invest.
  6. Confirm deposit and join the waitlist.

Hedged Bitcoin is expected to have strong appeal for :

  • Retail Investors: New users, curious about cryptocurrency who are keen to participate in the potential upside, but are unsure of when to buy.
  • Current Bitcoin Holders: Hedged Bitcoin provides a ‘protective wrapper’ for those who already hold bitcoin by shifting their funds into dollars ahead of dramatic crashes.
  • Self-Directed IRAs and Solo 401K Investors: those looking for alternative retirement investments with higher growth potential but more manageable risks.

“With our sophisticated science-based investment strategy and Uphold’s ability to seamlessly transfer funds between both fiat and digital currencies, we’ve created a proven online cryptocurrency investment strategy for everyday users,” said Beau Giannini, CEO of Ternary Intelligence. “Hedged Bitcoin is the perfect solution for customers looking for a less risky investment into the crypto market.”

To learn more visit Uphold.com/en/hedged-bitcoin and check out the Hedged Bitcoin website and White Paper. If you have any questions, contact our support team, support@uphold.com.

* According to backtests conducted by Ternary Intelligence for the period November 1st — 30th 2018.

** Period covered January 15th, 2015 to December 18th, 2017.

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Uphold

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