This automated trading tool helps crypto investors build well-balanced portfolios

cointelegraph.com:

A high level of diversification is essential in the crypto market. An automated trading platform is helping traders build balanced portfolios with built-in risk management tools.

Many investors find cryptocurrencies attractive because of their high volatility, which opens the door to returns that are difficult to achieve in traditional finance. However, this is a double-edged sword, as volatility also implies much higher risk.

The best way to reduce the volatility risk of individual digital currencies while still leveraging the wild price movements in the crypto market is to consider a diversified approach. Building a diversified crypto portfolio can reduce the risk while offering more stable returns.

However, while thousands of digital assets are available, crypto investors are looking to build a portfolio that reflects understanding of the crypto market and has unique characteristics.

There are two main things to consider before starting a crypto portfolio. First, performing fundamental and technical analysis on crypto assets is more challenging than on traditional assets like stocks, foreign exchange pairs or commodities. The crypto market is still an emerging industry, and it’s hard to predict major events that will affect it.

The lack of a clear regulatory framework across major jurisdictions and the rapid development of new subsectors such as nonfungible tokens (NFTs) or decentralized finance (DeFi) bring unique aspects to the crypto world. Some of these innovations are impactful but hard to predict. For example, who could have anticipated that the launch of Compound would spark the DeFi summer so quickly? Then there are the innovations that fail when they think the party will last, as with the TerraUSD (UST) and