Open digital money platform Uphold will now host a new investment strategy via an application designed by Ternary Intelligence which helps users mitigate the risks involved in Bitcoin trading. The new scientifically backed strategy helps in reducing the effects of Bitcoin downturns while maintaining positive upside potential over the long term.
How Can the Application Help Investors?
Named ‘Hedged Bitcoin,’ the application works on a complex and sophisticated system using the same science used to identify patterns in crowd behavior, molecular transitions, gene expression, and even tectonic plates. The algorithmic investment app is designed to capture the upside potential of Bitcoin while reducing the risk during downturns.
Ternary Intelligence has backtested the solution over the past five years showing that the strategy could deliver about 95% of the average CAGR (compound annual growth rate) of buying and holding Bitcoin, but with less the one-third of the risk.
Uphold’s co-founder and CEO; JP Thieriot said that their platform is leveraging the power of blockchain technology to enable the creation of personal finance products that could be mass adopted. He noted:
“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. It’s specifically designed to preserve value appreciation.”
The Use Cases of ‘Hedged Bitcoin’
The application puts complex scientific systems to work, shifting customer funds from BTC to USD when markets get crowded. It can help in democratizing access that would enable global participation in cryptocurrency.
Previously available only to hedge funds, the applications technology can now help be utilized by retail investors. It could also be useful for existing Bitcoin holders who want to have some protection and risk control. Solo 401k investors and self-directed IRAs may also find it a worthy alternative retirement investment option.
Ternary Intelligence CEO Beau Giannini said:
“With our sophisticated science-based investment strategy and Uphold’s global digital money platform, we’ve created a trusted online cryptocurrency investment service for everyday users.”