“If you want to make a killing from cryptocurrencies – read this book as FAST as you bloody can!”
I’d like to rush you a copy of my book, Crypto Revolution, right away.
Inside you will find everything you need to understand this financial revolution…
And take maximum – potentially life-changing – advantage of it.
Including the name of the coin I am calling “The Bitcoin Killer”…
A cryptocurrency that could ultimately climb 20,000% from where it sits today.
That’s the kind of move that turns R2,500 into R500k over the longer term.
You’ll get the name of that crypto… my full case for why it could rise to become the #1 crypto in the world…
And my full analysis on the entire cryptocurrency landscape, all in my book.
Crypto rebalancing can be the difference between making and losing money
In the crypto world, you can have a rebalancing cycle as short as a couple of hours to a few weeks or months.
A crypto trading company made a comparison of how well crypto rebalancing performs, when compared to a ‘buy and hold’ strategy.
In total, over 20,000 back tests were analysed.
What you can see from the results, is the positive correlation between performance and a shorter rebalance period.
Overall, portfolio results tend to improve with shorter rebalancing times.
And in all of the cases, rebalancing your crypto portfolio regularly, can significantly improve your crypto returns.
You can see in the table below the relative performance improvement based on the number of coins (assets) held and the time period of the rebalancing…
Here’s a real-life example…
Let’s assume that between February 6th to August 6th of 2018, your portfolio was worth R10,000 and was split between Bitcoin (50%) and stable coin, Tether (50%).
If you had rebalanced daily, by August 6th, your crypto portfolio would be worth R10,326.
Had you NOT rebalanced during this period, your portfolio would have been worth R9,838.
That’s around R500 difference — around 4.9% of your portfolio value, over the six months. And you must remember, this was during a crypto ‘bear market’. So, a positive return during a bear market is a great feat.
So how can you rebalance your crypto portfolio?
Did you miss ANOTHER double-digit gain this last month?
Those canny Pickpocket Traders didn’t - this time an 88.25% gain from a USD/ZAR trade.
And this isn’t a one-off lucky strike. Since June,, Trader X and his followers have banked gains of 22.52% from a European media company... 29.41% from Standard Chartered and 31.25% from BMW!
Two free crypto rebalancing tools you can try today
Fortunately, there are crypto websites that have designed free rebalancing tools.
When you sign up, you can create a new portfolio or copy a winning portfolio of someone else. Then, you can apply the rebalancing feature and decide how often you want to rebalance your portfolio.
3Commas offers $10 as a joining balance which is good enough to help you get started. Once you have seen the result of a portfolio building and rebalancing feature, you can grab any of its subscriptions.
There are a number of crypto exchanges that support 3Commas. The most popular, Binance, Poloneix, KuCoin and Bittrex. You can check it out here
Shrimpy is a completely free portfolio and tracking application used by cryptocurrency traders looking to automate their cryptocurrency portfolio.
With Shrimpy, you can create a crypto index and implement an automated strategy and an automated crypto index fund strategy, in just minutes.
You can also keep track of your entire cryptocurrency portfolio, including several exchange accounts and cold wallets
, from a single unified dashboard. All you need to do is sign up
See you next week.
Managing Editor, The South African Investor