Crypto for retail investors: Panxora launches risk management solution
Professional investors committing to volatile investment like cryptocurrency will characteristically employ risk management software to limit exposure to big drops in account value.
Panxora has launched a cloud risk management software that can be licensed by consumers investing in the cryptocurrency markets.
Panxora’s Risk Management as a Service (RMaaS) monitors the account’s digital asset holdings for increased volatility which can indicate the market is going to drop in value.
The software then moves account value from that asset into the safety of fiat currency waiting for the market to stabilize. Once the market returns to a less volatile state the models will move value back into cryptocurrency, frequently at a much lower price.
The strategy protects investors from big losses and the account returns to profitability far in advance of the market outperforming buy and hold, the firm claims, adding that the user can track this on the RMaaS dashboard.
Gavin Smith, Head of Risk Management at Panxora, commented: “We believe that cryptocurrency is at the start of a multi-year secular bull market. That doesn’t mean that there isn’t still significant volatility in the markets. This means that RMaaS’s delivery of superior risk adjusted returns can be of real benefit to any cryptocurrency HODLer, regardless of the size of their investment.”
Marcie Terman, Chief Operating Officer, said: “We have developed a self-administered, easy to use dashboard that makes the service accessible to the general public. Traditionally it is only sophisticated investors that benefit from the rapid growth in new markets – cryptocurrency is breaking that model providing a more equitable spread of wealth amongst followers that have joined the movement early.”
RMaaS will soon provide risk management for more coins besides bitcoin and ether as Panxora will be regularly releasing coverage for new coins over the next few months.
Panxora’s risk management service for cryptocurrency investing addresses the exponential growth of the digital asset market, with high profile investors like Microstrategy’s Michael Saylor buying bitcoin as well as the introduction of over $100bn dollars into the DeFi sector in just Q4 of 2020 alone.
These markets are extremely volatile. Professional investors committing to volatile investment like cryptocurrency will characteristically employ risk management software to limit exposure to big drops in account value.
Panxora is bringing a service, which is usually available to professionals and wealthy investors only, to retail investors. The cloud risk management software can be licensed by consumers investing in the cryptocurrency markets.