CryptoSmartlife offers a variety of Investment Strategies that can help you to measure and compare the performance of individual crypto assets based on your investment style and risk appetite. Offered strategies can be applied to each crypto thematic basket independently and are flexible enough to cater to the various needs of crypto investment.
Modern Portfolio Theory
The Modern Portfolio Theory is a mathematical framework used to build a portfolio of coins that maximize the amount of expected return for the collective given level of risk. In this investment strategy, our in-house proprietary AI algorithm allocates weights to the coins in the crypto thematic baskets based on the Modern Portfolio Theory efficient frontier & considering factors such as historical returns, price volatility, and coin correlation. It considers investors’ risk tolerance & produces returns based on risk to reward ratio.
Market Cap Based Allocation
One cannot anticipate future price volatility without knowing the total supply, max supply, and circulating supply of tokens along with many other important criteria. Instead of the current coin price, it is always recommended to evaluate each cryptocurrency’s performance based on Market Capitalization before making any crypto investment. The market Cap allocation investment strategy in this cryptocurrency investment app considers the most recent market cap of a coin and assigns weights equivalent to the ratio of the market capitalization of the respective coins to the combined market capitalization of all coins in the thematic baskets.
Transaction Volume Based Allocation
On-chain indicators such as transaction volume is an indicators of the growing adoption of the crypto project. This unique strategy considers the respective transaction volume of coins as a ratio of the combined transaction volume of coins in the thematic basket to assign weights to a coin. Coins with high Transaction volume are indicative of the fact that the crypto community is closely following these crypto projects and this could be tied to the growing potential of the coin project leading to a price rise.
Equal Percentage Allocation
In this strategy, the algorithm is designed in such a way that it allocates equal weights to every coin in a basket. If you are a true crypto believer that crypto grows but not sure which coin projects may have the upside, if you want to keep it simple, & don't believe in more complex strategies then this is the right strategy for you. With this investment strategy, you are essentially splitting your risk evenly across all crypto coins in your basket.
Each basket with each strategy is considered a unique basket. For Example, Users can Buy Bitcoin Ethereum basket with Modern Portfolio theory as well as with Market Capitalization strategy but both baskets will be considered as unique baskets.
You may choose amongst the four investment strategies via the CryptoSmartlife web app. Once you have chosen the smart basket, choose the strategy, check allocations, and invest.
Crypto investment strategy depends on your investment style and risk appetite. Our Investment strategies are designed to cater various needs of crypto investors.