4 best ways to create your BOTS portfolio
I'm Simon, a comedian and so-called crypto hobbyist. And just like you, I'm learning about trading as I go. In these videos, I do my very best to tell you as much as I can about trading apps, cryptocurrency, starting with trading, and much, much more.
This time, I’m diving into the world of the so-called ‘investment portfolio’s, and I’ll give you 4 essential tips that will help you get that cryptocurrency portfolio up and running! So are you ready to learn what the best cryptocurrency portfolio looks like, and which bots just have to be in your portfolio?
Sit back, relax, pour yourself a cuppa, and get ready to learn!
What is an investment portfolio?
Once you start investing, you’ll be putting a lot of time and effort into building your so-called ‘investment portfolio’. A portfolio is basically a piece of handy software that holds all your (cryptocurrency) investments. This means that you can see how each coin you’ve invested in performs, which bots are working for you (and which aren’t), what the pricing updates are and all the analytics you need to draw conclusions.
So long story short: if you’ve invested in Bitcoin, Litecoin and Ethereum, these are the coins you will ‘hold’ in your portfolio. The higher the worth of these coins, the higher the worth of your portfolio.
Of course, you hope your portfolio gains more worth over time. You can just let your portfolio sit and grow in value as time goes by. But if you want to speed things up, you can trade to obtain more valuable assets.
The best tips to start your cryptocurrency portfolio
Not too complicated, right? But how do you make sure you select the right cryptocurrency to start your portfolio? And how can you trade to increase the worth of it? Time for answers! So let’s not beat around the bush, and baffle you with 4 very practical and ready-to-use tips to get that cryptocurrency portfolio up and running!
1. Use multiple bots
The BOTS.io app uses BOTS: algorithms that automatically buy and sell cryptocurrencies for you. Each bot works with its own investment strategy — just like the trader would do on the stock market. The big difference is that you won’t have to lift a finger once your bot started working for you. By using multiple bots, you can spread the risk. If a certain bot temporarily underperforms, you just remove him from your portfolio while the other bots keep doing their jobs. And this highly decreases the risk of losing too much of your investment. As the saying goes: don’t put all your eggs in one basket!
2. Reinvest your gains
Are your bots doing a good job and did they start making you some money? Don’t run out to the stores on a shopping spree straight away. Rather reinvest these gains, put them back in your portfolio in the hope that this sum can keep growing. Those 50 quids in your portfolio might just increase in worth over time!
3. Select the right base coin
When you start trading, you will need to pick a ‘base coin’. This base coin is the currency used to buy and sell the coins you want to invest in. So let’s say you want to invest in Ripple, you will need to use your base coin (often stable coins such as US Dollar, Tether or Ether that don’t see high fluctuations in value) to invest in such.
But not only do you need this base coin to ‘buy’ the cryptocurrency you want in your portfolio: it is also the currency that your gains will be held in. So let’s say you just made $1.000 investing, and you decide to hold on to these gains in your portfolio in the hope that the value increases. Would you rather have this $1.000 held in a stable coin such as the US Dollar, knowing that those $1.000 will most likely be worth the same when you want to retrieve them in a month? Or are you ready to take some risk and hold on to your gains in a less stable coin such as Bitcoin, with the chance of the worth increasing or decreasing when you decide to retrieve your gains?
Basically, the base coin used by a bot indicates the risk of trading with this specific bot. Say the bot uses an unstable or high-risk base coin such as Bitcoin, then your investment risk will most likely be higher than when you’d use a bot that uses Ethereum or US Dollars as a base coin.
4. Have fun!
And most importantly: don’t forget to have a bit of fun. Try a few bots to see which ones work for you and which don’t. Do keep in mind that to see the actual performance of a bot, you should give them some time to do their job. If you’re still not happy with your line-up after a month or so, change it up, and add some fresh blood to your portfolio!
Need any help with anything?
If you still have questions about the BOTS app, please do not hesitate to contact the BOTS support department.
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.
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