The Right Choices for You: Things to Consider When Building a Portfolio on Stacked
Want to hazard a guess as to how many cryptocurrencies there are? (Hint: probably more than you think.)
As of early March 2022, there were more than 9,500 — and counting. Digital assets of every size, purpose, and name; some that were created to save the world’s financial system, and others that were made for a laugh (at least, we think their creators were laughing… See: Faustcoin.)
With so many different options, it can be hard to know where to even begin narrowing the field — let alone make a final call on which assets you will ultimately choose for your portfolio.
Stacked is here to make choosing the right crypto investments easy. We’ve created a marketplace filled with dozens of pre-built portfolios called Stacks that have been carefully curated to suit all different kinds of interests, tastes, and risk appetites.
If Stacks aren’t your jam and you’d like to be a bit more selective in your asset choices, the Stacked marketplace also has a wide variety of automated trading strategies called Bots, each with performance data that is updated in real time.
Here’s how to get started with Stacked-powered investing:
Choosing the Right Stacks and Bots for Your Investment Goals
“But I’m new to investing,” you say. “How can I make such an important choice?”
We at Stacked are here to help — to set out some of the questions you need to chew over to make sure you end up with an investment strategy that works for you.
First, consider your appetite for risk.
Investing in any tradable asset, particularly one as volatile as cryptocurrency, poses undeniable risks. Instead of ignoring or shying away from them, savvy crypto investors manage risks according to their tolerance. In other words, they have a clear understanding of their risk appetite — whether they are more comfortable with slower-growth, more stable investments, or volatile assets that offer the potential for both bigger gains and bigger losses.
Take for example the FTX Blue Chip 5 Stack, which includes some of the oldest and largest cryptocurrencies by market cap, which tend to be less volatile than their newer and smaller-cap counterparts. The NFT Gaming Stack, by contrast, offers a mix of large- and small-cap coins that provide exposure to new, more volatile assets in the NFT gaming and digital land space.
Unlike Stacks, Bots on Stacked do not trade multiple currencies. Instead, each focuses on a single digital asset — for instance, SW DAO BTC trades Bitcoin, while SlamBot Multi-Trend ETH trades Ether. You can assess the level of risk of each individual Bot by viewing its performance data, which is updated in real-time in the Stacked dashboard.
What Piques Your Interest?
Another important consideration when choosing investments is your personal interests, since trading assets that pique your curiosity will inevitably be more fun than trading those that don’t.
Are you diverted by decentralized finance (DeFi)? Are you a believer in Bitcoin? An enthusiast of Ethereum?
Never you fear — Stacked has it all. If you’re a fan of non-fungible tokens, the NFT Exposure Stack includes 11 of the most popular NFT protocol tokens on Binance. DeFi fans, meanwhile, can check out the Greyscale Defi, DeFi US, and Coinbase DeFi 12 Stacks. The Large Cap 10 is suitable for traditionalists who are interested in the most popular cryptocurrencies, and the Small Cap 5 suits bold investors who are interested in emerging assets.
If you’re more interested in how the trading happens than what is being traded, Bots offer a wide variety of strategies. Trendosaurus Rex uses trend following to determine the best moments to buy and sell, while Samurai Scalp seeks short-term opportunities with a 2:1 risk-to-reward ratio.
You can find all of those and many more in the Bots marketplace.
When you’ve activated a few different Stacks and Bots, use Stacked’s Strategizer as your guiding light. When you’ve got a variety of Stacks and Bots in action, keeping track of them all can be tricky. We’ve made it easy by aggregating all of your portfolio’s data into the Strategizer page on your Dashboard.
Other Important Factors to Consider
So now you’ve weighed your risks and your passions and come to some conclusions.
Before you take the plunge and set up your first Stack or Bot on Stacked, there are a few more factors to keep in mind:
- Stacks do not charge their holders monthly fees, while Bots do. The monthly cost of each Bot is visible on its performance data page.
- Not all Stacks and Bots are compatible with all exchanges. Stacked offers users the ability to connect with a wide variety of trusted cryptocurrency exchanges. But not all exchanges are compatible with all Stacks and Bots. Make sure the Stacks and Bots you choose work on the exchange of your choice.
- Stacked will never ask to hold your cryptocurrency. Your investments remain on the exchange(s) you choose unless and until you decide to move them. Instead, Stacked uses an encrypted API to send trading instructions to your exchange account(s) on your behalf.
Embrace the Power of Personal Choice
Stacked aims to be as personal as possible. The range of Stacks and Bots we outline above is just a fraction of the more than 100 strategies available on the Stacked marketplace: strategies designed to meet every investor profile. Especially yours!
So what are you waiting for? Click here and get started with Stacked today.