Central banks and central leaders are increasingly sounding the alarm about rising inflation and raising doubts around the world. Most recently, US Treasury Secretary Janet Yellen called on Congress to either raise or suspend US debt ceilings, saying the government would run out of money to pay the bills by October.

What appears to be a horror movie in the future, for now, is just the headline news about global financial publications. Yellen said that the vast majority of economists and government officials on both sides agreed that failure to increase the debt line would lead to a massive economic catastrophe, “likely to lead to historical financial crises, outlets and recessions, which would create dangerous volatility in the market.” .

The value of the US dollar will continue to decline in the future, and people need tools that are simpler than ever to protect themselves from financial risks and diversify their portfolios.

Risk events are also becoming more prevalent in global finance: margin calls and liquidation issues are now affecting both traditional finance and DeFi as they become more and more intertwined. The ongoing property crisis in Evergrande is further evidence that poor decision-making in a large number of markets will affect markets that we thought were irrelevant, such as cryptocurrency.

Public confidence in global finance has waned, and understanding of how money works has deteriorated over time. Historically, more than 31% of the world’s adults were without a bank due to political errors.

However, with the spread of more decentralized finance, more countries are starting to explore different currencies. A complex cryptocurrency by nature, it is finally moving to the next iteration, witnessing the emergence of tools and infrastructure development that help newcomers overcome the risks and uncertainties of the growing but emerging financial movement. Leaders in this field should help beginners reduce portfolio risk.

On the topic: Mass adoption of blockchain technology is possible, and education is key.

Democratizing finance means lowering barriers to entry to managing risk
Unfortunately, cryptocurrencies are volatile in nature. Market crashes of hundreds of billions of dollars are still common as the market capitalization has recently fallen to 2 trillion dollars. Speculation, announcements and other events can easily affect investor confidence or uncertainty, as recent events surrounding the collapse of the El Salvador Securities and Exchange Commission in recent weeks have shown. The SEC has been forced to tell investors to beware of cryptocurrency volatility and fraud as regulators tighten their controls on cryptocurrencies.

Even Bitcoin (BTC), although relatively recognized as a cryptocurrency, is still dominated by tweets from celebrities such as Elon Musk, whose actions and tweets on Tesla drove prices down.

The market is relatively new to mass adoption, and crypto assets tend to be concentrated among a number of whales. The actions of major players heavily influence price movements in cryptocurrencies, and new investors with smaller holding capacity are likely to overcome the complex nature of Davy and the cryptocurrency market.

Related Topics: Institutional Investors Won’t Switch to Mainstream Bitcoin – It Will

At this point in whaling exposure, it is important to understand how to control levels of risk to encourage mass adoption, especially for new investors with less capital.

Cryptocurrencies have democratized access to wealth: 24 hours a day, anyone can access financial assets at the touch of a button, as the assets offer higher returns than any paper assets owned by a traditional bank. Eliminating bureaucracy and middlemen has opened up great opportunities to create value by offering understandable assets and tools.

But for now, crypto simply reflects the distribution of wealth in traditional finance because those who are fluent in the language of cryptocurrency understand how to be strategic. Wealthy cryptocurrency holders have the ability to securely pay mutual funds and brokers who have access to traditional investment tools, such as offering trading, custody and financial services to ensure investments are always properly balanced with the market.

What is portfolio balancing?
Portfolio rebalancing is the process of changing the weight of a portfolio of assets, including periodic purchase or sale of assets to maintain a target distribution level.

Source: CoinTelegraph