Author: SanTi Li, Feng Yu, Naxida
In the current global financial environment, both the emerging blockchain Web3 industry and the traditional financial industry are experiencing confusion, opportunities and undercurrents in a century-level foggy situation. With the rise of digital currencies and the widespread application of blockchain technology, the investment landscape is also quietly changing. The holding styles of traditional institutional investors are gradually diversifying, and the choice of asset allocation strategies has become increasingly important.
In order to cope with this challenge, investors need to understand the characteristics and risks of various possible investment strategies and analyze the pros and cons of various allocation styles in the current financial environment to help us make the most suitable decision for ourselves in the current financial environment. Style decisions. This article provides a relatively brief introduction to six different asset allocation models, exploring 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 risk and seek relatively stable returns. It has a relatively balanced investment in risk diversification and value preservation and appreciation. The addition of gold provides a traditional relatively safe means of hedging, while cash assets ensure the liquidity of funds. Some proportions of BTC are relatively stable targets in the blockchain field (with large fluctuations) and USDT/C stablecoins are relatively flexible in entry and exit. Their volatility is relatively low, but the risk is linked to national bonds. The 10% ETH/Altcoin configuration adds potential value to the investment portfolio (the risk of ups and downs is also relatively higher).
2. Hard currency allocation: gold 50%, BTC 30%, silver 20%
This strategy tends to guard against possible inflation risks. Gold and silver, as hard currency assets in traditional industries, can provide relatively stable value preservation during economic instability. BTC has gradually been regarded as "digital gold" with relative long-term appreciation potential, but also carries a higher risk of short-term volatility. This strategy can provide relative stability during periods of severe market turmoil, while retaining some Bitcoin as potential growth space.
3. Cash flow: 100% (Cash + stored cash 60%, digital cash 20%, stable currency 20%)
This allocation style is a prudent defensive strategy when market instability or a sharp downward trend is foreseen, emphasizing liquidity and risk prevention. 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 RMB, etc.) and stablecoins can also bring universality and convenience to the digital world.
The configuration that completely relies on cash assets is usually used by investors who are pessimistic about the market or expect to control risks. It can avoid major losses when the market falls, but this configuration also needs to bear the risk of black swan events such as the bankruptcy of banks where investors store their assets in different countries in the current financial environment. For example, Signature Bank, which is very popular among blockchain industry project owners, went bankrupt this year.
4. Pure desire to lie flat flow BTC 100%
This allocation strategy is suitable for investors who have high confidence in Bitcoin. Although it may obtain higher returns in the long term, it also bears 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 value fluctuations 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 are willing to lie low, bet on the future appreciation potential of BTC, and do not care about how much it falls in the short term. They are willing to bear great volatility risks, even if it means zero.
5. Half-flow: Cash 50%, Altcoin Low Cap 30%, U 10%, BTC 10%
This investment allocation method is different from the first one in that it is more optimistic about the low-market-cap Altcoin category, and with a higher proportion of cash as a backing and mainstream digital currencies, investors who choose this allocation tend to be willing to accept higher volatility risks and pursue a higher proportion of high returns. Investors who choose this allocation method are advised 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 out.
This allocation strategy emphasizes investment in diversified digital currencies, especially favoring Altcoins with lower market capitalization.
6. Bet on underestimation of future flows, Altcoin 80%, U 20%
This strategy shows extreme trust in the Altcoins chosen by investors. This method requires investors to have a deep understanding of the market and high risk tolerance. It has strong prediction and response capabilities for market changes, especially for the buying point and trend. If the choice is correct, the returns may be extraordinary (such as GMT, CFX, etc., even if there is a 20-fold high volume increase in the short term in the bear market), but the risk of zero or large-scale losses is also the same (for example, buying at a short-term high, or a bottomless pit similar to LUNA in 2022).
This is a high-risk but potentially high-return investment strategy. Investing heavily in Altcoins means that investors are willing to take on potentially huge losses.
summary:
This article introduces six different styles of position models, the proportions of which are not rigidly fixed, but flexibly adjusted. 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. Any investment strategy is accompanied by risks. When choosing a suitable position style, investors need to consider their own financial situation, market changes, risk tolerance, investment goals, and life status. In particular, you need to understand what kind of person you are and your weaknesses. High-risk investments may bring high returns, but the possibility of losses is also greater.
Investment needs to be made in a relatively calm state. Do not invest because of temporary financial difficulties or debt repayment expectations, hoping to make a fortune through investment. This kind of thinking often results in a high probability of losing the existing funds.
Special statement: This article is only for the purpose of popularizing and sharing the different types of holding styles. It does not constitute any specific buying or selling advice for investment. Investors are requested to make judgments based on their own characteristics.