Trading Diversification Demystified: How To Build A Portfolio With 100+ PrimeXBT Assets
As many investors learned the hard way, if you build a portfolio too heavy in one type of asset class, no matter how diversified you think you might be, it won’t be enough when the macro environment turns risky.
Extreme care must go into crafting a strategy and risk-averse trading portfolio. However, how to go about it often overwhelms investors of just about any experience level.
A trading platform like PrimeXBT, with a pick of a list made of more than 100 different of today’s most popularly traded global markets, makes the complex job a little bit easier and a lot less stressful. Read on to find out how PrimeXBT helps to demystify trading portfolio diversification, along with some key strategies on how to stay profitable and reduce risk in the current global macro environment.
How The Post-Pandemic Bubble Left Crypto Traders At Risk
Following the pandemic, risk-free credit and capital became commonplace, causing equities, cryptocurrencies, and other risk assets to reach extreme valuations in a short amount of time. Stimulus money blinded investors with greed, forgetting about the underlying impact on the economy and supply chain.
Investors who got sucked into the bubble often loaded up on meme stocks, Bitcoin, and altcoins. But when the macro environment turned to turmoil, war, inflation, and more, risk assets plummeted faster than investors could take profit.
A cascade effect from panic has taken the price of Bitcoin, Ethereum, and altcoins down by 70 to 90% across the board. Downward spiraling prices caused mass liquidations of institutions and forced margin calls on crypto hedge funds. Any investor that was crypto or stock market heavy possibly took an enormous loss.
Many PrimeXBT traders were able to weather the storm better than others due to having a wealth of ways to diversify risk in a portfolio. PrimeXBT traders were able to profit from shorts, but that’s only a tiny piece of the puzzle.
How A Risk-Averse Portfolio Can Keep Traders Profitable
Fortunately for PrimeXBT traders, users of the platform have access to more than 100 different trading instruments to choose from to build an ironclad portfolio. Staying away from risk assets also involves upside risk – the risk of missing out. Rather than exit markets entirely or move to cash, PrimeXBT traders can hedge spot positions with shorts in the same asset class or swing trade between long and short trades when applicable.
PrimeXBT offers traditional assets in addition to crypto, so crypto traders could have stayed profitable by taking positions in oil and natural gas while the energy sector was pumping or hedging with inflation-resistance assets like gold and silver. There are also stock indices and forex currencies from major economies from around the world. The massive mix of assets respond to macro conditions differently, allowing investors and traders to lower risk and increase profit potential at the same time.
Portfolio diversification is an advanced strategy that, during turbulent times, can keep a portfolio from going under. Part of why the average investor doesn’t take it into consideration is because it usually requires several platforms to take positions in so many different asset classes. This is why PrimeXBT is the key to demystifying portfolio diversification once and for all.
Diversify With More Than Just Trading Instruments
PrimeXBT offers even more diversity beyond the trading instruments alone. The platform is the exclusive home to the Covesting copy trading module and Covesting yield accounts. There is also a Contests area with weekly competitions and crypto rewards, as well as the PrimeXBT Trading Academy educational website.
Covesting copy trading gives traders yet another way to diversify their portfolios by putting capital behind top strategy managers with proven performance. Followers can copy the trades of any strategy managers ranked by ROI in the Covesting global leaderboards, making money when a trade is successful.
Followers can follow several strategy managers to build a diverse portfolio of strategies. Using the leaderboard filters, users can search for strategies that are safer or more profit-forward. The right blend of strategies can create a synergistic effect, much like the right mix of trading instruments can make a portfolio more profitable.
Best of all, PrimeXBT users can manage these positions and their portfolios from anywhere in the world, right from the palm of their hands, using the entirely free PrimeXBT smartphone app. The application is available as a free download for Android and iOS devices and recently received a new update to bring more features from the platform to the app experience.
Demystify Portfolio Diversification With PrimeXBT
PrimeXBT has it all. It is the variety and range of trading instruments, tools, products, and services that make the platform the best out there when it comes to diversifying a trading portfolio.
Between long, short, or hedge positions in markets like gold, oil, Bitcoin, or the S&P 500, traders can create the perfect portfolio for their needs with PrimeXBT. Demystify portfolio diversification today with PrimeXBT.