Hello

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Hi

It is difficult to answer about correlation. Problem is that cryptocurrencies are only few years old (at best) so there simply isnt enough data to determine that. And obviously past indication says nothing about future.
Historically there definitely is some correlation but in last months price direction has started to diverge. No one knows if that is short term development or major pattern.
BTW if you look mayor crypto currencies against another currencies (not only USD) picture changes even more.

I think the best way to make market netural stategies in crypto currencies isnt via divesification (make portfolio with netural or negative correlation) but via hedging. I hope CME will do good job and BTC futures will be liquid and that would pave way to many hedging and short selling strategies that would considerably improve trading and investing process. Plus this probably will be the reason that would bring institutional money into crypto currencies (most hedge funds dont open naked positions) and that would meen additional liquidity.

Hello

If you have 10k GBP allocated for cryptocurrencies you have to answer couple of questions:

What is the amount of volatility and level of drawdown that you could potentially tolerate? As you have vitnessed - there was huge amounts of volatility in las few days and countless traders had lost their sleep and focus (hopefully only that). This will be reality for you if you want to be fully invested. If this level of heath will be excessive you will eventually make some grave mistakes. So this is probably most important question to understand.
Best option will be to invest no more than 1k and if you are comfortable with that - then gradually increse your positions. Dont be afraid to miss out oppertunities, you are new in this industry - there will be plenty of ups and downs.

Do you have some prefferences or do you want to have maximal exposure to crypto markets? If former is case then you answered your qestion, if latter - than you should invest in some indexes that represents basket of main currencies.

Hope that helps

Regards

Hello


Please notice that orders cannot be executed by price that you see in your chart. If there are huge volatility and low liqudity, market price and actual order execution price can vary significantly - in trading that is called slippage and smaller exchanges and brokers are particularly susceptible to that.

P.S. Before you open account you should check your potential broker or exchange.
As a rule of thumb they should be under securities regulation  and hence they should comply with regulatory standards(depending on jurisdiction).
If d your transaction hasnt been completed you should inforom them aobout that and request detailed information. If they dont comply you can go to your respective regulator. But if this broker isnt regulated there is real chance of fraud.


Hope that helps

Regards

There have been much discussions regards bitoin trading, but mostly they are focusing on long only strategies. That might work for certain periods (especially in secular uptrends) but if one has made detailed analysis of bitcoin (or any other cryptocurrency) price history, then you will notice that there have been several prolonged periods with downtrends.

Question is. Has someone made market neutral strategy with one or several cryptocurrencies that reduces exposure to sharp downtrends?