Bitcoin Forum

Hi Everyone!

The crypto market can be complex when you have a diverse portfolio of assets and no convenient way to manage a long-term strategy. In my latest article, I discuss how to automate a crypto portfolio with a few simple strategies that have been used by investors for decades. I consider these the most important strategies for anyone to know if they want to maintain a long-term position in crypto.

Let me know what you think!

Crypto Trading Automation for Portfolio Management (https://blog.shrimpy.io/blog/crypto-trading-automation-for-portfolio-management)

Happy trading!

Managing your crypto portfolio is one of the best thing need to know of every investor & trader like what you said its better to diverse portfolio asset. Thank you for making article regarding management crypto portfolio and I agree that we need to rebalance our assets.

Diverse portfolio can be use to minimize lost from our activity and mosty I use 2 - 3 coins in balanced amount. Sideways market is the right moment for diverse but the time is relative depend market movement. First time use it is just like no affect into our portfolio, that's normal because the aim is to cover not for make profit. This articles has value for newbie like me and thank you, I hope more articles for ours.

We cannot just put all of our funds in just one basket because it is very risky decision. Putting all of our funds in just one investment can give us high profit but it can also give us high losses so that is why diversification is  good. Pyramiding is one of the diversification strategy that we can use. What do I mean by that? Pyramiding fo example is you will put the 40% of your fund in bitcoin then the 30% is in ethereum and the other 20% is any other coin. That is pyramiding and it is effective strategy in terms of diversification.

for me your management system is wrong, you allocate all your money to trade?
i think better use maximum 75% of your balance, so you have 25% for backup , crypto is unstable market we can predict it easily, the probabilty arround 30%-40%

I also use 2 different portofolio, one for investment and one for trading. This is quite good because we could define which is the coins that we should worry about the short time price and which is for long term investment. If we combined it we'll panic if we see out assets in value of USD drops and we'll sell our assets which is really bad for investment

I havent clicked the link yet when it comes to portfolio management i do only make use on some apps when checking out prices.
Having lots or diversified isnt a problem as long you do able to check their prices in one go and if theres a significant price pump
then you can simply trade and secure profits.Im doing these things for years and i dont see it as a hassle thing for me.

It was told in the article that trading bots are complicated.

But the explanation for the portfolio managing is more complicated.  ;D
I would still rather do it manually.
The way I understand it and have a way to make profit.
Those kind of tips are for those who want to spend a lot in trading. I won't. I'd rather gamble.  ;D

I usually divide my account into 70% and 30%. 70% of which is located in cryptocurrencies, usually potential currencies on the market such as Bitcoin, ETH, BNB, LTC.
The remaining 30% I hold USDT, if the cryptocurrency market goes down I will use that 30% to buy bitcoins and as soon as the price increases I will sell and collect USDT.
That is my specific tactic and I find it to be very good at this point.

Trading strategies and portfolio management are things that need to be honed a lot in the early stages of trading. Knowledge of models is not so important, we should have a perseverance in creating this habit and it will help us to have a more memorable and profitable transaction journey. profit is greater than ever. Thanks for sharing this helpful article.

Shrimpy has always came out with these amazing articles, I don't mean that their developers and designers (maybe all the same person who knows) are bad, they are doing an awesome job and definitely a great product and I would totally suggest everyone to at least try it (even if the affiliate income is very low for affiliate networkers) but the blogger is just on a whole another level.

I definitely would love to have a bot that does the portfolio management part for me however considering how little money I already have in the crypto market paying someone a monthly fee just to keep my portfolio balanced would mean eventually I would have not much crypto to begin with, however for people who have over 1k in their portfolio even if you don't want DCA and SOR, you should always take a look at the portfolio management.

Dollar-Cost Averaging (DCA) is probably one of the worst investment advice to be thought in the crypto market or for any market we have, you know why? Because with the method of having a fixed period and a fixed amount to buy an asset you completely remove the opportunity of buying the asset at it's best price, you are simply ignoring to have a margin of safety in your portfolio as well as minimizing the earning potential of your capital. DCA from what I know is just thought for newbies to have the right mindset on investing their money regularly in the market but the truth is it is one of the dumbest tips/advice you can hear from anyone here. If you simply want to maximize your capital do not buy regularly but buy them at its best price during that time.

It doesn't mean OP is using all money to trade. He is only giving his way how to diversify your money to same or equal % to each promising coin. You can use your 70% and then divide it to 4/5 promosing coin like article which OP shared above. It's correct to always have some backup to buy more coins if market crashed

Such a great explanation for the people who are really make money from trading and want to trade for living. I hope in the future there is an apps that could linked to all our accounts in exchanges and wallet and make a dashboard for our portofolio in a single apps, would be nice to have.

Pretty great article. Usage of graphs was well done and made understanding the terms and process a lot easier. I often had difficulties in managing my Portfolio in the past but experience taught me quite a bit of things about them.
I'm pretty sure OP is abiding with the law of "Invest what you can lose". I mean, that's one of the basics of the basics when it comes to trading and investing. Even with gambling, that issue is always considered before entering the scene since as you said, The crypto market is way too volatile, especially if you're trading with the famous coins since they always change unexpectedly every now and then like BTC, ETH and others.

Diversifying is really one of the best strategy to make in order to obtain greater returns and having many options as well. Having the system is somehow applicable for those big time traders. It can add to your costs. It can really be helpful to have a systematic monitoring especially for large scale traders. In this way you'll be able to track your activities. For those who can't sustain yet, a manual monitoring will do probably.

Well, diversifying your portfolios is one of the basics included in trading. Together with investing what you can lose and learning stop loss, you can already say that you are ready to enter the world of trading. As for the strategies in crypto, I'm more inclined to using Rebalancing. It's a lot easier imo and a lot stress free to handle compared to others. The only risk with Diversifying is that it doesn't bring profit as much as focusing on a single coin. But, it has relatively lesser risks involved though. Just that, if you want to make as big of a profit as investing on a single coin, a large enough capital is really needed.

I have a different take though on diversification.

Yes, if you're a crypto enthusiast, you can spread it along the lines of bitcoin, maybe more than 60% and the rest on the top 10 coins. But I also prefer diversification of my assets that will also include other markets as well, perhaps stocks or precious metals or even investing on real state if you can afford, just saying.

Beside those strategies, one of the best also to do is DOCUMENTATION, you should do that. Like creating your own journal, even it is online or in your notebook.
By this way, you will have your records and you can use that in the future to manage your portfolio and have records how did you made this and thatm

Using a spreadsheet is much better and easier. Computation is not going to be manual as compared to doing it on a page in your notebook. Much better if you use google spreadsheet so that you can access and save it anytime and anywhere you are.

I guess this is for your portfolio, portfolio is not "all of your money", it is just the money you invest into crypto, you might as well have billions in stocks as well and just couple thousand to crypto and it is still your crypto portfolio.

Nobody mentioned you should put all your money into it or anything, it is only for people who have a portfolio, I also do not believe that DCA is a horrible strategy, it is viable if you know how to use it and use it very well, if you go into a coin all in then you will not have any money left, however if you have 100 bucks, only use 50 bucks to buy 5 different coins 10 each and one of them falls too much you can use another 10 bucks and another 10 bucks multiple times. Now that is horrible if the coin you bought is a horrible coin but doing that with coins like btc, eth, ltc wouldn't be that bad in the end.