This month, PrimeXBT announced the launch of seven new altcoin assets, each of which has the potential to add even more reward to an already profitable investment portfolio, all while potentially lowering risk.
Such a portfolio is only possible on an award-winning platform such as PrimeXBT due to the large variety of trading instruments available from a single account, all under one roof.
Here is a step-by-step guide to putting together a successful portfolio with PrimeXBT.
What Is Portfolio Diversification?
Portfolio diversification is the act of spreading capital and positions across a number of assets and markets, intending to lower overall risk and improve the chances of success. Investors and traders are less susceptible to losses associated with one asset’s poor performance with a diverse portfolio.
Granted, this causes the same investors and traders to miss out on the occasional reward of going all in on a winner, but preventing loss is more crucial to capital growth than successful trades.
Portfolio diversification can also be used strategically by taking positions across uncorrelated or anti-correlated sectors. For example, crypto investors and traders should also consider gold and silver for the same reasons they like Bitcoin and Litecoin. In this scenario, the addition of trusted and more stable assets next to highly volatile speculative assets can help limit the risk of a crypto-heavy portfolio.
In the reward example, simply by accessing all of the advantages of stock index trading, forex currencies, oil, gas, gold, silver, and crypto as part of a highly diverse portfolio, traders can ensure they are never missing out on the action, no matter which market or sector it is in.
The last way PrimeXBT traders can diversify their portfolio is by opening both long and short positions, even simultaneously on any of the over 50 trading instruments offered at the advanced trading platform. This lets traders build hedge positions for when signals appear mixed, or the market takes a sudden unexpected turn.
PrimeXBT Adds New Possibilities For Diversity With Seven Altcoins
- All major forex currencies pairs, along with minors and exotics.
- Top stock indices like the S&P 500, Nasdaq, and FTSE.
- Commodities such as oil, gas, gold, and silver.
- Cryptocurrencies Bitcoin, Ethereum, Litecoin, and EOS.
But as of recently, they also added Cardano, Chainlink, Dogecoin, Uniswap, Solana, Polkadot, and XRP to the already star-studded lineup. The seven cryptocurrencies represent some of the most influential technologies in the blockchain industry and the most successful financial assets of the last several years.
Many of the coins included on the list have outperformed Bitcoin by 500% or more in many cases. In fact, nearly all altcoins have beaten Bitcoin in 2021, proving why portfolio diversification is a must, regardless of the asset class. Mixing asset classes is an even better way to spread around risk, especially.
How To Build A Portfolio With PrimeXBT
To get started with PrimeXBT, visit the award-winning trading platform directly by typing the website URL www.primexbt.com in your internet browser of choice – either desktop or mobile. Bookmark this page and stick to that link to avoid any knockoffs.
Then, register with an email address, location, and very little more. Confirm an email address, and log in. Once logged into the easy-to-use interface, making a deposit is possible right from the main account section. Deposits can be made with no minimum in BTC, ETH, USDT, and USDC. The same section can also be used for withdrawals and to exchange one base margin currency to another for margin trading.
With a margin account funded, visiting the margin section lets traders tackle markets with long and short positions, stop loss, take profit orders, and much more. But, before any trader should jump to that step, an optional but suggested pit stop in the analysis section is possible with integrated charting software from TradingView.
With support and resistance drawn and targets measured, traders can find a lot more success when going long or short regardless of the asset. Now here is where the fun begins. With more than 50 different trading pairs to choose from, a portfolio can start to be built.
Mixing Traditional Markets With Digital Assets And All New Altcoins
When it comes to specific strategies on how to build out a portfolio, that is ultimately up to the individual and what assets they’re interested in and any research they’ve done. Adding traditional assets to a crypto-heavy portfolio is one way to reduce risk, or adding digital assets to an index-centric portfolio could spice things up a bit.
For traders who are into crypto-only, diversity is still possible with the latest new altcoins. While traditional investors and traders still have a tough time touching Bitcoin, Litecoin, and Ethereum, those who have been around these assets for some time can begin to layer in some positions for these riskier yet more profitable altcoins.
PrimeXBT also offers an entirely unorthodox way to diversify one’s portfolio by putting capital behind other more experienced traders through the Covesting copy trading module. Covesting lets followers copy the trades of strategy managers to build out a robust portfolio.
By following several skilled strategy managers, anyone can hedge against themselves with their own trading portfolio and betting on someone else instead. In the future, access to DeFi protocols through Covesting Yield Accounts will offer another way investors and traders can change it up.
Conclusion: Advanced Portfolio Diversification Options All From A Single Account
Managing a portfolio is the next challenge to consider. PrimeXBT offers a free smartphone app for Android and iOS devices so users can stay on top of positions from anywhere in the world, wherever they go, at any time.
24/7 live customer support chat is also always available, along with a personalized experience from a dedicated account manager. A help center and company blog also offer several tips and guides, as well as useful information where traders can learn more about the brand, platform, and financial markets.
Are you ready to start building your portfolio with PrimeXBT? The possibilities are endless, and so is the potential for profitability.