In the market for cryptocurrencies, substantial diversity is necessary. With integrated risk management features, an automated trading platform, such as TradeSanta, aids traders in creating well-balanced portfolios.
Automated Trading Tool TradeSanta Builds Well-Balanced Portfolios for Crypto Traders
By manually purchasing numerous digital currencies through centralized or decentralized exchanges, investors can diversify their exposure to the cryptocurrency market. Nevertheless, it can be challenging to keep track of all these assets, and unforeseen circumstances can surprise investors.
Building a crypto portfolio with the aid of an automated crypto trading platform like TradeSanta would be a more effective method. Users can create their own trading bots, employ pre-existing ones, or copy the tactics of profitable traders.
How Does TradeSanta Work?
Using TradeSanta to build a cryptocurrency portfolio helps shield investors from a variety of hazards. The platform enables a number of algorithmic trading methods and trading bots that may perform the majority of trading tasks without requiring human input, hence reducing the risk of psychological strain.
Additionally, users can add risk management tools like stop loss and take profit to the bots, which can elevate portfolio management to a new level. More sophisticated features like martingales for order volume, TradingView signals, and personalized TradingView indicators are also available for use with TradeSanta. To further improve their trading experience, this trading bot also provides trailing stop loss and trailing take profit choices.
TradeSanta opens doors for traders of all backgrounds, empowering them to navigate the crypto market easily. Our commitment to simplicity and continuous improvement ensures that automated trading remains accessible to all.
Kris Vlas, TradeSanta’s Partnership Manager
One further service provided by TradeSanta is its marketplace, which lists the top-performing bots for consumers to clone with a single click. The profitability of the bots during the previous 24 hours, three days, one week, or one month can be tracked by users. It can assist investors in rebalancing their cryptocurrency holdings by incorporating some of the most profitable trading pairs and methods.
What to Consider When Creating a Diversified Crypto Portfolio?
A diversified strategy is the greatest method to lessen the danger of individual digital currencies’ volatility while still taking advantage of the market’s volatile price swings. So, a diversified cryptocurrency portfolio can lower risk while providing more consistent profits.
Before beginning a crypto portfolio, there are two key factors to take into account. First of all, analyzing crypto assets using fundamental and technical analysis is more difficult than analyzing traditional assets like equities, currency pairs, or commodities. Because the cryptocurrency market is still in its infancy, it is difficult to forecast the big events that will shape it.
The second point to be aware of is that, despite the crypto market’s relative independence from traditional assets, its constituent parts exhibit extremely high correlation, which makes diversification a little more challenging. In reality, most cryptocurrencies follow Bitcoin’s long-term price of $29,493.
Even though the returns of various cryptocurrencies are distributed across a wide range and longer time frames, which is excellent for diversification, short-term fluctuations sometimes coincide. This is why it’s essential to think about creating a cryptocurrency portfolio with a variety of subsectors and a longer-term objective.
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