When an average Joe hears about cryptocurrency, the first thing that pops up in his mind is how volatile the underlying assets have been. Maybe he is not wrong after all as historical data also resonates with this argument. But having said that, volatility also offers an unprecedented opportunity to accumulate life-changing gains, if invested correctly.
In general, retail investors' FOMO is based on market trends without following fundamentals. Everyone is a wolf of wall street when candles are green but retailers are put under the pump when crypto winter arrives. The FOMO makes users react to wild market fluctuations, such as buying high when candles are green & selling low when candles are red. It is inherently difficult to time the crypto market and hence it becomes more important to follow fundamentals such as diversifying one’s crypto portfolio, doing Dollar Cost Averaging (DCA), Knowing the risks involved, and doing research on the project you are planning to invest in - Team, Technology, Product, etc. Many themes within Crypto are futuristic and one must principled investing to not lose money in some pump and dump coin project.
CryptoSmartlife, the best app to buy crypto in India, is a thematic basket investment platform allows inexperienced crypto investors & experienced investors to know the risk (measured in terms of volatility & Max Drawdowns) & let them invest in Crypto than just buy & sell. Here are the key features that make CryptoSmartlife the smartest crypto investment partner for thousands today:
Investment in Thematic Crypto Baskets :
Thematic baskets are a collection of crypto coins/ projects based on emerging & popular themes like metaverse, defi, web3, nft, etc. Cryptocurrency being an emerging asset class, it’s important to diversify your portfolio in multiple coins than to put all your eggs in one project. Thematic basket investing helps you add diversification while maintaining focus on the themes that you believe in.
Investment based on risk appetite :
Cryptocurrencies are a new financial form of assets, and investors struggle to know the relative risk associated with them. CryptoSmartlife’s risk appetite lets you compare your risk - low, medium & high- with other basket allocations & invest based on your risk appetite. You can compare returns, volatility, max drawdowns & Sharpe ratio of the respective basket allocations and make a decision.
Auto Rebalance your allocations based on market conditions :
The Crypto market is very dynamic and event-driven, a month in crypto could mean many factors change & so is the performance of various crypto assets. Investors must take care of necessary adjustments to the portfolio based on market conditions.
Cryptosmartlife smart auto- rebalancing feature rebalancing your basket portfolio periodically based on prevailing market conditions. You can choose to opt-in / opt-out of rebalancing, in case you opt-in you can choose between Monthly & Qtrly frequencies for rebalancing.
Recurring Investment Plan :
Recurring Investment Commonly called Dollar Cost Averaging (DCA), is a common and simple investment methodology. You invest small amounts at certain periods, like weekly, monthly, Quarterly, etc in a consistent manner irrespective of market prices. Over time your investments will average out and reduce the impact of market volatility.
The unpredictable nature of the crypto market makes it difficult for traders to predict when to enter and exit profitable trades. Many investors set up a recurring investment plan offered by CryptoSmartlife in baskets to reduce the effect of market volatility. Investors can set up recurring investments in both baskets as well as coins.
Portfolio management
The use of portfolio management tools that can handle a wide range of digital assets has become important for modern investors and the financial benefits they provide.
CryptoSmartlife provides an efficient way for investors to handle portfolios by providing deep analytical views such as performance charts, portfolio time-series, coin split donut charts, etc
Risk-based basket Assessment :
To buy cryptocurrency in India can get confusing for new investors. Investors struggle with identifying the basket that they can begin investing in. To make this easy CryptoSmartlife has come up with a Risk-based basket assessment where investors are required to answer four questions and based on the responses investors would be redirected to either beginner baskets or expert baskets. Investors can use this distinction to have a confident starting point in their crypto.
To avail of all these features, all you have to do is download the CryptoSmartlife app available on the android playstore & iOS AppStore, signup, and start investing.