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Portfolio analysis

Portfolio analysis

Keep an eye on your risk and diversification across all your assets and exchanges.

Why Gainium's portfolio analysis?

Keep your portfolio balanced

Maximize your returns

Protect yourself against risks

Portfolio FAQ

Portfolio management refers to the process of managing a collection of investments, known as a portfolio, to achieve specific financial goals while considering factors such as risk tolerance and investment objectives. It involves making decisions about what assets to include in the portfolio, how much to allocate to each asset, and when to buy or sell them.

In short, portfolio management is the art and science of optimizing investment returns while minimizing risk by strategically selecting and managing a diversified asset allocation. The goal is to achieve a balance between maximizing returns and mitigating risks based on an individual's or an institution's investment objectives and constraints. This includes monitoring the performance of investments, conducting research and analysis, using crypto portfolio tracking apps, and making adjustments to the portfolio as market conditions change.

Crypto portfolio analysis refers to the process of evaluating and assessing the performance, risk, and composition of a portfolio that consists primarily or exclusively of cryptocurrencies. It involves analyzing various factors and metrics to gain insights into the overall health and potential of the entire crypto portfolio.

Key elements of crypto portfolio analysis include:

Portfolio Performance: This involves measuring the returns and performance of the crypto assets over a specific period. Common performance metrics include the portfolio's total value, percentage gain or loss, and comparison against relevant benchmarks or market indices.

Risk Assessment: Evaluating the risk associated with the crypto portfolio is essential. This includes analyzing the volatility and historical price movements of individual cryptocurrencies within the portfolio, as well as assessing the portfolio's overall risk exposure and diversification.

Asset Allocation: Examining the right asset allocation of different cryptocurrencies within the portfolio is crucial. This involves assessing the percentage of each cryptocurrency in the portfolio, considering factors such as the portfolio's investment strategy, risk tolerance, and market conditions.

Market Analysis: Analyzing the broader cryptocurrency market is important to understand the performance and potential of individual cryptocurrencies within the portfolio. This includes monitoring market trends, news, and regulatory developments, and assessing the impact of market events on the portfolio.

Fundamental Analysis: Conducting fundamental analysis on individual cryptocurrencies within the portfolio involves evaluating factors such as project team, technology, adoption, market demand, competition, and prospects. This analysis helps determine the value and growth potential of specific cryptocurrencies.

Technical Analysis: Applying technical analysis techniques to cryptocurrencies can provide insights into short-term price movements, market trends, support and resistance levels, and other trading indicators. Technical analysis can help identify potential entry or exit points for specific cryptocurrencies within the portfolio.

Risk Management and Diversification: Implementing risk management strategies within the crypto portfolio is essential. This may involve diversifying the portfolio across different cryptocurrencies, setting stop-loss orders, and regularly rebalancing the portfolio to adjust for changes in market conditions.

Crypto portfolio analysis helps investors make informed decisions about their cryptocurrency holdings. It assists in identifying strengths, weaknesses, and opportunities within the portfolio, allowing investors to optimize their investment strategy and potentially improve risk-adjusted returns.

Bot trading typically necessitates large sums of money, especially if the bot trades many pairs. You may have noticed that it is difficult to maintain track of all the tokens that are left idle on the exchange because bots do not use them over time. Gainium can assist you in managing your assets in this situation. Gainium now provides different tools that no other bot trading platform provides to assist you in managing your money quickly and securely. It will help you monitor all your investments across the connected crypto exchanges in one portfolio tracker.

On the "Portfolio" page, the "Bankroll" graph, and the "Free" funds column.

The Bankroll

Once logged in, the "Bankroll" graph appears on the dashboard, displaying how monies are spent by bots. The Bankroll is intended to assist you in keeping track of your bot's gains so that you can withdraw them without risking an overdraft or overexposure to the market. It is also critical to keep an eye on it because the bots will not initiate any trades if the balance is insufficient.

  • Blue indicates monies currently being used by bots in open trades.
  • Purple funds are those that have limit orders in smart trades locked in.
  • Orange funds are those that are not presently being utilized in active transactions but will be if the bots open all deals and consume all of the funds assigned to them.
  • Green funds are funds that are not planned, are not locked in limit orders, and are not currently being used by bots.
  • An overdraft is indicated by the color red.

All bots in the example below are trading on BTC and ETH markets, which means that the quote currency is BTC and ETH; if you are trading on stablecoins, you will see a different tokens, such as USD, BUSD, and so on.

The full quantity of BTC and ETH on the exchange is either utilized or planned in this situation, therefore there are no free funds to withdraw.

The Portfolio Balance

Gainium's "Portfolio Balance" tab is a one-of-a-kind Gainium platform feature that gives customers a full picture of their cryptocurrency portfolio. It enables you to see all the digital assets accessible on the Gainium-connected exchanges as well as how they are utilized. This page contains more extensive information on each item in the portfolio than the "Bankroll" page, such as the current price, total amount held, and exchange in which the asset is kept.

The "Portfolio Balances" section is displayed in "Aggregate" mode by default. To view which exchange your assets are in, uncheck the "Aggregate" box on the top right. The categories available in the "Bankroll" are shown in the example below, as well as the exchanges where the "Free" monies are kept.

Gainium's "Portfolio Balance" and "Bankroll" visualization tools might be quite helpful for anyone wishing to keep their assets in a decentralized manner. Investors can successfully manage their holdings and diversify them across multiple assets by employing these tools. This can help to reduce risk and safeguard against potential losses. Overall, the combination of these technologies can contribute to a more safe and dependable means of maintaining cryptocurrency assets in a decentralized environment.

Yes, you can import all your transactions in the Trading Terminal to keep track of your crypto holdings at all times. You can also see the latest transactions directly from the dashboard.

There are several popular cryptocurrency portfolio trackers available on desktop as well as mobile apps. Here are some of the best crypto portfolio trackers:

CoinMarketCap: CoinMarketCap is a good portfolio tracker that provides a comprehensive overview of the cryptocurrency market, including a portfolio tracking feature. It allows users to track crypto assets, view market data, and access various analytics tools.

Coingecko: CoinGecko is one of the best crypto portfolio trackers that provides information and analytics about the cryptocurrency market. It offers real-time and historical data on prices, market capitalization, trading volumes, and other relevant metrics for thousands of cryptocurrencies. The platform also offers additional features such as portfolio tracking, price alerts, and news updates to keep users up to date with the latest developments in the crypto space.

CoinTracking: CoinTracking is another good portfolio tracker and tax reporting platform. It offers crypto traders features such as portfolio management, transaction tracking, performance analytics, and tax calculations. CoinTracking supports integration with multiple exchanges and wallets.

Blockfolio: Blockfolio is a mobile-based crypto portfolio tracking app that allows users to monitor their holdings, track prices, and receive customizable alerts. It provides real-time crypto market data and supports integration for automatic portfolio updates of your exchange-traded funds.

CoinStats: CoinStats is a multi-platform crypto portfolio tracker available on the web, mobile, and desktop. It offers features like portfolio management, price tracking, market data, and alerts. CoinStats supports integration with multiple exchanges and crypto wallets.

There are several crypto trackers available on the market, however, Gainium offers you an all-in-one solution where you can trade and track at the same time your entire portfolio making it the best portfolio tracker.

Broadly speaking, diverse crypto asset allocation is important because it helps crypto investors manage risk, capture potential returns, diversify exposure, optimize the risk-reward profile, and capitalize on market opportunities in the dynamic cryptocurrency market.

Risk Management: Diversifying across different cryptocurrencies helps manage and mitigate risk. Cryptocurrencies can be highly volatile, and by spreading investments across multiple cryptocurrencies, investors reduce the impact of potential losses from any single cryptocurrency. Holding different asset classes helps protect against the risk of a particular cryptocurrency underperforming or experiencing adverse events.

Exposure to Different Opportunities: Diversification allows investors to participate in various cryptocurrency ecosystems and gain exposure to different technologies, use cases, and sectors. Each cryptocurrency represents a unique project with specific goals and features. By diversifying, investors increase their chances of benefiting from successful projects and advancements in other assets. Diversification includes also keeping your digital assets across multiple exchanges.

Potential for Returns: Asset allocations provide the opportunity to capture potential returns from a variety of sources. Different cryptocurrencies can experience varying levels of growth and performance over time. By allocating various asset classes, investors can potentially benefit from successful projects, market cycles, and emerging trends.

Reduced Dependency on Single Assets: Depending on a single cryptocurrency can expose investors to concentration risk. If that cryptocurrency experiences a significant decline or fails, it can have a substantial negative impact on the portfolio. A diversified portfolio also reduces dependency on any single asset and helps protect against such risks.

Hedging Against Market Volatility: Cryptocurrency markets can be highly volatile, influenced by various factors like regulatory changes, market sentiment, or technological advancements. Diversifying across different cryptocurrencies can help hedge against market volatility. While one cryptocurrency may experience significant price fluctuations, others may remain more stable, balancing out the overall investment portfolio performance.

Enhancing Risk-Adjusted Returns: Diversification is a way to optimize the risk-reward profile of a crypto portfolio. By diversifying assets and balancing the portfolio, investors can potentially achieve a more favorable risk-adjusted return. Diversification helps strike a balance between risk and reward, enabling investors to optimize their portfolios based on their risk tolerance and investment objectives.

Active Portfolio Management: Active portfolio management involves actively selecting and managing investments to outperform a benchmark or market index. A portfolio manager using this approach often conducts in-depth research and analysis to identify undervalued securities or market opportunities. They frequently buy and sell investments, in our circumstance cryptocurrencies) to take advantage of market movements, aiming to generate higher returns than a passive investment strategy. Active portfolio management requires regular monitoring and adjustment of the portfolio based on market conditions and the manager's expertise.

Passive Portfolio Management: Passive portfolio management, also known as index-based or indexing, aims to replicate the performance of a specific market index or benchmark. Instead of trying to outperform the market, a passive portfolio manager focuses on achieving similar returns as the chosen index. This approach typically involves investing in a diversified set of securities rather than individual securities that mirror the index composition. Passive management tends to have lower fees and lower turnover compared to active management, as it requires fewer investment decisions. Investors often rely on fund managers or financial advisers leaving it almost hands-off.

Strategic Portfolio Management: Strategic portfolio management emphasizes long-term asset allocation decisions based on an investor's risk tolerance, financial goals, and time horizon. It focuses on creating a well-balanced portfolio by allocating funds to more than one altcoin (such as Bitcoin, Ethereum, Cardano, etc) or even spreading it across other asset classes ( commodities, real estate, etc.) based on their historical performance and expected future returns. These kinds of portfolios are periodically rebalanced (target date funds) to maintain the desired asset allocation percentages. A strategic portfolio manager aims to capture the benefits of diversification and considers a more stable, long-term investment strategy rather than frequent trading or attempting to time the market.

It's worth noting that these types of portfolio management are not mutually exclusive, and elements of each approach can be combined based on an investor's preferences and investment strategy. For example, crypto investors may employ strategic asset allocation (strategic management) while using passive index funds to implement the chosen asset allocation (passive management).

Crypto portfolio analysis can be helpful for crypto taxes purposes, but it is important to note that tax regulations regarding cryptocurrencies vary by country and jurisdiction. While portfolio analysis can provide valuable information and data related to your crypto investments, it is essential to consult with a tax professional or financial advisor who specializes in cryptocurrency taxation to ensure compliance with local tax laws.

Here's how crypto portfolio analysis can assist with your crypto tax report and track your crypto:

Transaction History: Crypto portfolio managers or analysis tools often provide a crypto transaction history, which can help document your buying, selling, and trading activities. This information is crucial for accurately reporting your capital gains or losses for tax purposes. With this crypto service, you can connect all your wallets and exchanges.

Cost Basis Calculation: Calculating the cost basis of your cryptocurrency holdings is essential for determining capital gains or losses when you sell or exchange them. Crypto portfolio analysis can help calculate the cost basis by tracking the price and timing of crypto transactions, ensuring accurate tax reporting.

Capital Gains and Losses: By analyzing your portfolio's performance and tracking individual gains and losses across your wallets and exchanges, you can determine the amount of taxable capital gains or losses incurred during a specific tax year. This information is crucial for reporting your crypto-related tax liabilities accurately.

Tax Reporting Tools: Some crypto portfolio trackers or analysis platforms offer specific features for crypto tax reporting targeting different tax reporting needs. These tools can generate tax reports, including the necessary information required by tax authorities, such as transaction details, capital gains, and other relevant data.

Compliance with Tax Regulations: Properly analyzing your crypto portfolio and maintaining accurate records can help you comply with tax regulations. By having a clear understanding of your holdings, gains, and losses, you can ensure that you report your crypto-related income correctly and meet your tax obligations.

However, it's important to reiterate that tax regulations regarding cryptocurrencies are complex and can vary from country to country. Crypto taxes laws are subject to change, and it's crucial to consult with a tax professional who can provide guidance specific to your jurisdiction and personal circumstances.

The number of crypto coins you should have in your investment portfolio depends on several factors, including your investment goals, risk tolerance, market conditions, and personal preferences. However, here are a few considerations to help guide your decision:

Diversification: Diversification is often recommended as it can help manage risk. By spreading your investments across multiple cryptocurrencies or even multiple portfolios, you reduce the impact of potential losses from any single coin. However, diversification should be balanced, as holding too many coins can make it challenging to track and manage your portfolio effectively.

Risk Tolerance: Your risk tolerance plays a significant role in determining the number of coins in your portfolio. If you have a higher risk tolerance and are comfortable with the potential volatility of cryptocurrencies, you may consider holding a larger number of coins. On the other hand, you might prefer to have a more conservative portfolio choosing less volatile coins.

Investment Horizon and Strategy: Consider your investment goals and the strategy you are pursuing. If your objective is long-term growth and you believe in the potential of specific cryptocurrencies or blockchain projects, you might allocate a larger portion of your portfolio to those coins.

Research and Due Diligence: Conduct thorough research on the cryptocurrencies you are considering for your portfolio. Evaluate factors such as the project's team, technology, adoption, market demand, competition, and prospects.

Portfolio Management: Consider your ability to actively manage and monitor your portfolio. Holding too many coins can make it challenging to stay updated on each project's developments and market changes.

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Gainium is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial adviser before making financial decisions.