Show HN: Automatically invest spare change in cryptocurrencies(blog.myvested.com)
blog.myvested.com
Show HN: Automatically invest spare change in cryptocurrencies
http://blog.myvested.com/myvested-intro
3 comments
Can you explain your methodology for selecting the coins for the different model crypto portfolios?
Hey there,
Turns out I misunderstood HN and I don't get emails for comments, apologies!
The portfolios have 2,3 and 4 coins, this is just a static rule. The concept is the lower the portfolios risk tolerance, the higher the coins' market cap. This means a conservative portfolio would have the top 2 coins (see https://coinmarketcap.com), the moderate would have the next 3 and aggressive has the next 4.
The market caps are normalized (the algorithm is secret for now) to make sure we don't expose anyone to too much risk if a coin does something like pumping into a high position right as we change our portfolio makeup.
As a rule, the higher an assets market cap, the less room it has to grow but also less likely to drop, hence by selecting the top 9 coins we're providing a diversified portfolio that matches the risk tolerance implied by the name.
Fun Fact: If those portfolios don't have what you want, custom portfolios went live a few minutes ago.
The portfolios have 2,3 and 4 coins, this is just a static rule. The concept is the lower the portfolios risk tolerance, the higher the coins' market cap. This means a conservative portfolio would have the top 2 coins (see https://coinmarketcap.com), the moderate would have the next 3 and aggressive has the next 4.
The market caps are normalized (the algorithm is secret for now) to make sure we don't expose anyone to too much risk if a coin does something like pumping into a high position right as we change our portfolio makeup.
As a rule, the higher an assets market cap, the less room it has to grow but also less likely to drop, hence by selecting the top 9 coins we're providing a diversified portfolio that matches the risk tolerance implied by the name.
Fun Fact: If those portfolios don't have what you want, custom portfolios went live a few minutes ago.
This app aims not only to allow easy investments with spare change but also optimize portfolio management for advanced users, see the article for more info or feel free to ask anything! :)