The world stands in the way of financial revolution, which dictated the need for transparency in the financial industry and the desire for decentralization of banking services.
A major contribution to the development of decentralized systems introduced bitcoin. Thanks to him, many financial institutions drew attention to the technology of the blockchain. In addition, bitcoin for several years, went from concept to market more than 300 billion dollars. Cryptocurrency recognize the state of the major world markets started to trade futures. But despite the enormous capitalization and high trading volumes, bitcoin is extremely volatile instrument.
The Swiss broker and Bank Swissquote has developed a tool that will help to reduce the volatility of investment based on technical and market models, minimizing the risks.
This tool is designed as a stock certificate, which reduces bitcoin’s exposure to market volatility, enabling investors to maintain a balance between bitcoin and the US dollar through its own machine learning algorithm that analyzes technical patterns, volatility, pressure on the buying and selling. As a result, the program reduces the volatility by increasing the amount of Fiat (in US dollars) held in a period of uncertainty and downturns.
Using the data collected on these indicators, the algorithm predicts the short-term direction of the market. Based on the level of predicted confidence in the future direction of the market, Swissquote invests from 60% to 100% of its cash portfolio in bitcoin. The remaining portfolio balance is invested in US dollars. This strategy reduced volatility can help investors reduce the risk of investment in bitcoin and increase the potential return on investment.
Funds, as well as personal wallets, keys and storage that the investor places on the platform, well protected from external invasion.