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CRYPTO PORTFOLIO MANAGEMENT

WHAT IS PORTFOLIO MANAGEMENT

Portfolio management is the practice of allocating a certain amount of money to various financial investment products. Bitcoin is the most well-known cryptocurrency. Cryptocurrencies are electronic and decentralized alternatives to government-issued money.

HOW MANY CURRENCY SHOULD BE IN YOUR PORTFOLIO

There is no agreement on how many assets or cryptocurrencies should be included in an investor’s portfolio. However, according to a research containing over 100,000 backrests, investors may make the most money with roughly 20 assets. Back testing is the practice of analysing how well an investing plan might perform using past data.

With 20 assets in a bitcoin portfolio, an application or programme that lets investors track their investments is required.

CRYPTO CURRENCY PORTFOLIO TRACKER

Investors may use cryptocurrency portfolio monitors to keep track of their holdings. They are no longer need to log in to several accounts. They may instead handle all of their crypto holdings in one spot. Investors can view their earnings and losses from all of their bitcoin investments with these trackers. They can also monitor real-time market values and set up important notifications.

Based on the number of downloads and star rating on Google Play, we compiled a list of five bitcoin portfolio monitors.

  • 1 million downloads and a 4.8-star rating for Blockfolio.
  • Delta has received over 500,000 downloads and has a 4.5-star rating.
  • CMA: 4.5-star rating with over 500,000 downloads.
  • Coin Stats App has over 100,000 downloads and a 4.5-star rating on Google Play.
  • More than 100,000 downloads and a 4.6-star rating for Bit Universe.

Although there are many of similar apps, these five bitcoin portfolio monitors have the most downloads. While each has its own set of capabilities, they all provide market price updates to customers.

They also give consumers a glance into the performance of their assets, saving time and effort. Cryptocurrency investors’ portfolios might range from three to more than twenty crypto assets. It takes a lot of work to keep track of all of them, and it may be perplexing at times. As a result, bitcoin portfolio trackers are useful tools for investors who want to monitor all of their investments in one spot.

DOLLAR COST AVERAGING

Dollar cost averaging (DCA) is an investing method in which the entire amount to be invested is divided up into periodic purchases of a target asset in order to lessen the impact of volatility on the overall purchase. The acquisitions are made at regular intervals and regardless of the asset’s price.

DOES DOLLAR COST AVERAGING WORK

According to a 2012 research by Vanguard, investing in a single sum vs. dollar-cost averaging yielded superior outcomes 66 percent of the time. The analysis discovered that the longer the time horizon, the more likely it is that investing everything at once beats dollar-cost averaging.

HOW DCA AND CRYPTO PORTFOLIO MANAGEMENT LINKED

Investors utilise dollar-cost averaging (DCA) to lessen the downside risk of putting big quantities of money into the market at once.

While this can take the shape of buying a single asset on a regular basis, we’ll be looking at the technique from the standpoint of a portfolio. Consider it as a means to add fresh funds to a portfolio on a regular basis.

Dollar-cost averaging effectively distributes injected money across the portfolio based on a set of target allocations.

EXAMPLE

Let’s take a look at a portfolio simulation as an example of how DCA works.

Assume we have a $100 investment portfolio. This portfolio now has an even distribution of five distinct assets, each of which has a value of $20. As a result, we may argue that the portfolio presently has 5 assets allocated at 20% each.

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