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 freefalland 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 crashleft 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 Brokerwe 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.IOBroker 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 Blockfolioare 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.