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29558401 No.29558401 [Reply] [Original]

Nassim Taleb stresses the importance of tail risk mitigation in a portfolio, and the same concept applies well to an otherwise long-only cryptocurrency portfolio
Some companies (e.g, Microstrategy $MSTR, Riot Blockchain $RIOT, Marathon Patent Group $MARA) are publicly traded, and are strongly correlated with bitcoin and thus crypto as a whole.
It would be retarded to short these because doing so has potentially unlimited downside, but you can buy put options which can easily 10x in a matter of days if crypto gets rug pulled. By allocating a small fraction of your overall portfolio, you can be aggressive with the other 90 or more %.More importantly, these puts moon precisely when crypto takes a nose dive, so you can buy the dip with your massive gains.
That's how you accumulate faster.

>> No.29559218

That's a smart strategy.
Aren't the premiums crazy expensive at those companies you mentioned at the moment though?
(It might still be smart, but if the bleed from premium is too high, sometimes it's not worth it even though the reasoning is correct)

>> No.29560142

>>29559218
Desu, if crypto is rug pulled, 10x money isn’t going to save you.
It would mean it’s time to break out the beans and ammo.

>> No.29560529

You buy TBond puts and nasdaq or spy puts

>>29560142
Lol you sound exactly the same as an index fund fag
"I don't want to live in a world where the s&p doesn't return 8% annually. I'll just kill myself because it will be Armageddon"
This is actually how r/investing thinks and apparently maxis too
Imagine loving in the hellscape of modern Japan after a multi decade stagnate stock market
The horror, the horror

>> No.29561459

>>29560529
I don’t think your comparisons work, index funds and debt-laden economies can’t really be compared to crypto.
At this point in time, a failure in crypto suggests the failure of all economies world wide, which has never happened before. Even in WWlI, fags were making money hand over fist.