A few years ago,
many traders and investors in the cryptocurrency sphere didn’t have a portfolio. Instead, they invested all their money
backing one currency, which was normally Bitcoin. Putting their financial
weight behind one currency meant they were hoping
that either their Bitcoin investments were going to continue growing (and
for the most part it did) or they had bought up a rival Cryptocurrency in the
hope it would put on a “Bitcoinesque” show. Those days the number of Bitcoin exchanges was noticeably smaller
and their functionality wasn’t that wide.
Diversifying Instantly Adds a Layer of Protection
The emergence of Portfolio Management Tools and Apps
CEX.IO Broker
Integration with CEX.IO Exchange
Comprehensive Analytics
Security and Mitigating Risk
Then in late
2017 and early 2018, the unthinkable happened. Overnight (if not faster) the bottom fell out of the market as a
few investment groups who held a large portion of Bitcoin all cashed in at
once. The currency went into freefall
and the dreams of becoming incredibly wealthy by owning Bitcoin were dashed
against the rocks.
Today there are
still some who clung on to their Bitcoin
and weathered the storm, still waiting for the currency to get to the value
they purchased it at. With the latest
positive trends in Bitcoin's price, this could come to fruition in the not
too distant future. The Bitcoin's crash
left a sour taste in many people’s mouths, some sold and made huge losses, some
held on, but it was a sign for each investor that they needed to be more attentive to their funds.
Diversifying Instantly Adds a Layer of Protection
In the wake of
this fallout, 2018 ushered in a period of stagnation across much of the market,
but against a bleak backdrop, some currencies began to shine out. Currencies like Ripple and Ether were
beginning to grow and investors began moving money away from Bitcoin and
Bitcoin-based currencies (Bitcoin Cash, Litecoin) towards more promising
prospects.
Another trend
emerged, investors were beginning to buy
multiple currencies across different exchanges and they were beginning to hedge risks. Instead of lumping all of
their money in Ripple, they spread their
investment pot over a range of Cryptocurrencies, meaning that if Ripple
failed, another currency might perform well enough to offset that loss.
The emergence of Portfolio Management Tools and Apps
If you’re an
investor or trader in 2019 or you’re looking for getting into Cryptocurrency
trading then there are a few tips that you should abide by. The first tip is to
check out some of the portfolio
management tools and apps available (even before you have invested in any
stock) and familiarise yourself with the interfaces, features, and
functionality.
Using a
portfolio management app will have plenty of long-term benefits but it will also help you get up and running if
you haven’t traded before. Using a new portfolio and broker tool, CEX.IO Broker
we will show you why.
CEX.IO Broker
There are other
portfolio management tools available so make sure you try some others before
selecting your app of choice. CEX.IO
Broker gives you great functionality regardless of your experience level so
that makes it great for the cryptocurrency portfolio management.
Integration with CEX.IO Exchange
With any
portfolio management tool, you will need to make sure it behaves in the way you
expect it to and this means on the most basic level it needs to communicate with the exchange that you’re trading on.
There are a couple of fantastic portfolio management apps that use a multi-exchange
platform to give you functionality across many different exchanges.
This is useful if you are a seasoned trader with
multiple exchange accounts and have the patience to
buy Crypto across a number of exchanges. This is specifically a strategy for
those in the know about Cryptocurrency as using
multiple exchanges can come with pitfalls especially if you select the
wrong exchange or happen to use the one that is susceptible to hacking.
CEX.IO exchange
is a world-leading exchange that has never
been hacked and continues to provide competitive
fees and lots of trading options. This makes it a favorite for seasoned
pros and ideal for those looking to get their feet wet in a safe environment.
Building on this strong framework, the CEX.IO Broker offers you additional trading functionality to
mitigate risk.
Comprehensive Analytics
Another crucial
thing that any self-respecting portfolio management platform will have is sophisticated features to analyze your
trading experience. CEX.IO Broker collects historical data of
your strategical moves, which allows you to take some lessons based on your own
experience and benefit from it.
Other portfolio
management apps have a wide range of analytics and data, some of them don’t
provide much information beyond what is already available. But others like Blockfolio
are revered within the community and
provide critical insights into your
Crypto investments. Blockfolio plugs into multiple exchanges but has no sync feature with these
exchanges, relying instead on user input to help it manage and stay up to date
with your buys and sells.
CEX.IO Broker
provides the same Blockfolio sleek
design and functionality as well as synchronizing with the CEX.IO exchange. It is worth
trying Blockfolio out as it is free to
use. It will also give you a very hands-on experience of what a good
portfolio management app looks like, especially if you haven’t yet signed up to
CEX.IO which you should do at the same time to feel out which fits your style
best.
Security and Mitigating Risk
Last but not
least, a crucial tip for managing your
portfolio is to ensure that you're protecting your
investment at all times and wherever possible you’re mitigating risk. Many portfolio
platforms will offer comparison tools and notify you if things in the market
change. Most do this in real-time although there are some that don’t have
real-time functionality.
CEX.IO is very security conscious and even though thus far they haven’t been hacked they always advise that you keep your investment in
private wallets and not on the exchange. The CEX.IO Broker also provides a comprehensive hedging strategy that
will help you mitigate risk and offset any detrimental price changes.
In short,
whether you’re a seasoned trader or not, if you have a portfolio you should have a portfolio management tool
which at the very least alerts you to market changes in real time. If you
find one of the better tools, these can actually not only keep you informed and
ahead of the play, they can also help you protect
your investment and expand your portfolio.