How to create a cryptocurrency portfolio
3.1. how many coins to buy
3.2. when to buy
3.3. when to sell
3.4. how to make stable overall profit
3.5. how its works with correlation between the prices and how can it help?
There are literally dozens of tokens on the crypto market nowadays and choosing among them is as daunting as understanding the whole crypto market in one scope. The emergence of new projects and project tokens is a phenomenon that cannot be stopped anymore as the blockchain technology advent sweeps the economy. However, no one canceled the existence of stillborn projects or the factors of supply and demand. Therefore, the similarities between the conventional securities market and the crypto market emerge yet again. All of this is even more exacerbated by the fact that volatility on the crypto market is beyond comparison with even the most turbulent days of conventional stock markets. Hence, investors seek answers as to what portfolio to create.
There is no ideal answer as to how many tokens to hold, however, the standard is having Bitoins, Ether and Litecoins in the portfolio. Most experienced trades keep a very sharp eye on the token market and sift through emerging tokens by their security or functionality mode very attentively. As a result, experience dictates that having BTC, ETH and at least four other viable tokens in a portfolio is the optimal norm. If there is no cash for BTC or ETH, at least four project tokens should do for portfolio diversification.
Buying project tokens is a fickle business. It is extremely hard to predict the nature of their exchange rates. Most of the time, it is profitable to buy up promising project tokens early during presale rounds with bonuses and discounts. However, there is always a risk that a dump in prices will take place immediately after the ICO.
Selling off the portfolio is just as risky as there is always the factor of volatility to take into account. If the tokens belong to a project with good potential, it is reasonable to keep them and wait. If the news and winds start blowing of imminent crisis, selling is the option.
Stable profit can only be achieved through the success of the company whose tokens are in the portfolio. Hence, the only real factor a trader can count on are the outside factors that affect token prices. If active trading is your choice, then installing a trading bot and selecting the trading strategy needed is the logical conclusion.
The trading strategy itself should be based on solid trading background knowledge and foreknowledge of the market. This is no simple task given the immense amount of data on the market that has to be taken into account. As a result, find a logical correlation between prices and their rates is a task best left to AI.
Though the crypto market is still relatively new and lacks many of the traditional institutions of a civilized market, there are projects on the market that seek to indemnify or mitigate the associated risks that investors take when deciding to invest in projects. Cryptics is one such project that seeks to offer the necessary instruments for alleviating the situation with uncertainty. The concept behind it is to support market participants by providing liquidity on exchanges and a safety cushion for retail investors by creating a platform that connects market players and develops algorithms to predict changes in the value of cryptocurrencies. Such instruments based on highly advanced scoring models involving machine learning and AI are incomparable with human intuition that even the luckiest and most prudent investors could ever be endowed with. The multitude of factors involved in predicting a cryptocurrency’s rise or fall are all taken into account by the algorithms that Cryptics employs. Investors should consult such projects as the expense is well worth the ensured profit and peace of mind.