In order to achieve success in life, we have to become authentic machines that know how to see the risk in every decision we make. We have to become totally anti-fragile people.
Life is really susceptible to change in milliseconds by a punctual decision. Everything has changed in just one second, and nothing goes back to how it was before.
In the world of finance, we have several examples, although the latest and clearest one we have seen is that of FTX. However, there are many others that we are all exposed to that we should try to remedy.
The risk of your country going bankrupt due to excessive debt, the risk that the bank where you have your money is not solvent. The risk is that a certain political party will come out and freeze accounts in an election.
As you can see, all these possible risks are present in our lives. Although the greatest risk will always be the things, we do not know that we do not know.
The same thing can happen with our portfolio. In fact, I don't know of any investor who is tremendously concentrated in certain stocks and has not been exposed to some black swan in the long term.
A killing portfolio
Our methodology is very clear. To have a portfolio totally uncorrelated between different assets and expose ourselves in a positive way to these black swans that sooner or later we will end up encountering in our lives.
For this, it is very important to try to reduce volatility in most of our portfolio by means of assets with very little risk.
An excellent alternative can be found through stablecoins. These are digital currencies backed by the dollar and are totally decentralized. In this way, we can avoid geopolitical risks or simply inflation.
The fear of centralized exchanges
As our subscribers know, we have several stablecoins in a centralized exchange. This centralized exchange is the only one that is currently audited in real-time by means of smart contracts. This significantly decreases the risk of FTX, but the risk will always be infinitely higher than a fully decentralized alternative.
Today we are going to present you with an alternative that has achieved a return of 8.69% in the last year, as you can see below.
It is a simple fully-backed strategy. This means that for every dollar you invest, there will be a dollar in some bank backing your investment.
Before we tell you how you can invest in this strategy, we leave you with other decentralized alternatives.
All of them allow you to earn money with your cash. The main problem is that you expose yourself to liquidity risks in DeFi itself.
With the following strategy, this risk is totally eradicated.