How Crypto Portfolio Automation Can Help Your Investments Grow?

 

Manual diversification is possible in slow markets such as stocks. There is no doubt about that. While you might need to seek out the advice of a more experienced investor in order to pick the right assets, diversification is simple and takes very little time.

What about the crypto market? Investors don't have a weekend to take a deep breath and plan their next steps. Exchanges are open all day, seven days a week. For most investors, the word "break" is not in the dictionary.

How can you trade or diversify in such a hostile environment? Real professionals act and move much faster than anyone else. You might feel like you won't make it with crypto, and that volatility and crashes can be too much.

You can find comfort in automated crypto portfolio for both diversification and trading. What is crypto portfolio automation and how can traders make consistent money with it?

What's crypto portfolio automation?

Portfolio automation refers to the act of automating an investment portfolio for trading, diversification or rebalancing. We will go through each use case in detail to help you understand crypto portfolio automation.

Trading bots

A crypto trading bot is the best way to automate your crypto portfolio. It can be used on any market that you have. The trading bot is basically a piece of computer software that executes trades under pre-selected market conditions. It is best suitable for beginner crypto portfolio.

You may be wondering what market conditions are like. You can think of anything! Let's suppose you are a very risk-averse trader who doesn't like opening positions when volatility is at its highest. If the market moves quickly or there is an avalanche in trading volume, you can tell the crypto trading bot "to halt trading" and close any trades.

Perhaps you believe that once a coin crosses a certain price, it will continue to move in the same direction. Even though the day is over, you still worry about the possibility of the crypto market collapsing. What should you do?

If you don't want to be awake all night, the bot can track prices for you. You can also ask the bot to open a short position if the coin remains below $20,000 for more than five minutes. The red candle wave will continue, and everyone else who was afraid to open a short position will be unable to do so.

These are just some of the strategies you can use with a crypto trading robot. It might seem strange that bots are not used by everyone to trade, given their support for many technical indicators, risk strategies and candle patterns.

Diversification

Portfolio automation platforms allow you to automate diversification of your portfolio by clicking a single button. Diversification is important because if you invest too much in a project, it will end up costing you a lot of money. Your risk exposure will be greatly reduced if you have 5, 10, 15 or more assets.

The platforms we are referring to today can help you automatically diversify your portfolio. This can be accomplished by exchanging an existing asset for one or more cryptocurrencies. Your original holdings might be replaced by platform tokens, utility tokens or store-of-value assets.

You can follow other investors' investments, copy their portfolios and even purchase assets from a cryptocurrency index. This will save you time and help you find the right combination of assets or the best cryptocurrency.

Rebalancing

The process of rebalancing is similar to diversification. However, your portfolio may be modified from time-to-time. A portfolio automation tool will adjust your holdings based on current market trends and asset performance.

These periods are referred to as rebalancing cycles. The cycles can be set in any manner you like. Investors rebalance their portfolios most often on a weekly, or monthly basis. Although it is possible to rebalance portfolios every 4-8 hours, 8-12 hours or 12 hours, most experts don't recommend this.

 


Created: 30/09/2021 15:50:15
Page views: 109
CREATE NEW PAGE