The Smart Portfolio bot allows investors to consistently buy low and sell high coins across market cycles. This strategy involves quickly moving to lock in profits from price increases before prices decline, then investing the extra cash towards inexpensive coins that are about to appreciate.
This method gradually increases the overall amount of bitcoin assets possessed. Cryptocurrencies often have links to certain industries, and holding assets can pass up significant profit chances during these cycles. To increase earnings, investors can sell the first coins at their peak and use the proceeds to purchase cheaper rising coins.
Passive cryptocurrency investors now have a potent new option to boost returns with thanks to Smart Portfolio. Users may see as their assets increase since the automatic manager manages portfolio rebalancing. Utilizing tried-and-true trading concepts, Smart Portfolio simplifies allocation, reinvestment, and profit-taking.
“This automated portfolio manager aligns with our ‘Trade Smarter’ philosophy of leveraging technology to empower users. Beyond intelligent bots, we continue refining our platform with advanced features and services to help traders and investors thrive across various market conditions. Going forward, we are committed to keep raising the bar for innovative solutions that make crypto investing smarter.” said Gracy Chen, Managing Director at Bitget.
EmpowerX Summit, Bitget’s first flagship event, just took place. The summit hosted about 1900 distinguished visitors and made the $100 million EmpowerX Fund announcement there. The fund will largely assist the expansion of regional exchanges, data analytics companies, and media organizations, emphasizing on an unshakable commitment to encouraging ecosystem development.
What exactly is a Smart Portfolio?
A bot known as a “Smart Portfolio” automatically and intelligently rebalances holdings within a user-selected coin portfolio. A steady percentage of each coin in the user’s portfolio is achieved with the aid of dynamic rebalancing. Users can select between two rebalancing ways to start these adjustments: depending on changes in the market capitalization of the currency, or based on a predetermined time period.
The benefit of this bot is that it may profit from changes in exchange rates between various currencies while managing a well chosen portfolio.
The calendar and percentage-of-portfolio rebalancing methods are the two available rebalancing options:
Percentage-of-portfolio
Changes in the market value of one or more coins cause balancing to occur. That is, balancing is initiated when the market capitalization proportion of one or more currencies deviates from the predetermined percentage by a defined threshold of equal to or more than 1. (Checks will be conducted after each rebalancing at intervals of five minutes in order to prevent overly frequent rebalancing.
Calendar balancing
At certain intervals, the degree of deviation is identified, and balancing is initiated as necessary. After the predetermined amount of time, the system checks to see whether any currencies’ market capitalization percentages have departed from the predetermined % by an amount equal to or higher than 1. In the event of such a departure, rebalancing is initiated. (Only a variance over 3% will cause a rebalance; this is to prevent too frequent rebalancing.)
What situations are Smart Portfolio used in?
Various currencies or market segments frequently correlate with one another. Other coins may start to climb when a few coins that have risen start to fall at the same time. You can lose out on big earning possibilities throughout these alternate cycles if you merely cling onto these coins without doing anything. However, you may also ensure potential profits if you act quickly as the value of the initial few coins increases and use those gains to buy further coins for less money. You may obtain more from a single portfolio if you do this.
Advantages of a smart portfolio
By taking advantage of swift price swings, Smart Portfolio presents new chances for HODLers to possibly boost the profits on their holdings of digital assets. The bot distributes a portion of the profit to other coins in the portfolio when the price of an asset in the portfolio climbs to a certain level. The rebalancing process would have guaranteed the profit even if the asset’s price dropped later, and the bot would have been able to expand the overall number of assets in the portfolio.
What is the Smart Portfolio bot’s trading strategy?
Suppose you want to invest 100 USDT in a portfolio that consists of 1:1 BTC and ETH. 50 USDT of ETH and 50 USDT of BTC will be purchased using the Smart Portfolio bot. After then, the bot will check the exchange rate between the two currencies every five minutes to see if there have been any changes, and it will then update the positions as necessary to keep the value of the two coins constant at a 1:1 ratio.
The bot will sell 5 USDT of BTC and acquire 5 USDT of ETH when the value of your BTC holding reaches 60 USDT while the ETH remains at 50 USDT. As a result, the portfolio ratio will always be 1:1. As a result, you will hold a position of 55 USDT in ETH and 55 USDT in BTC.
In contrast to the HODLing bot, Smart Portfolio gives customers the ability to specify rebalancing trigger conditions and take advantage of token price variations for arbitrage possibilities.
Selecting Sell at Termination could not work due to factors like delisting, suspension, risk control, etc. The bot’s resources will be immediately transferred back to the spot account.
The world’s largest cryptocurrency exchange, Bitget, was founded in 2018, and one of its main characteristics is the provision of copy trading services. The exchange is dedicated to assisting people trade more intelligently by offering a safe, one-stop trading solution. It serves over 20 million users in more than 100 nations and regions. By working with respectable partners like renowned Argentinean football player Lionel Messi and official eSports events organizer PGL, Bitget encourages people to accept cryptocurrency.
