/biz/ - Business & Finance

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.

Why did these retarded Jews take so much risk? Why are they in a position to lose literally everything on 1 trade? Have they not read Taleb?

No respect for the fat tails