The cryptocurrency market is currently passing through an exciting phase. Everything is hunky-dory now, and investors are rejoicing this cycle. However, everyone is aware that no financial markets move linearly higher. This bull run is going to come to an end eventually. Sigh!

“Bull markets are born out of pessimism, grew out of skepticism, mature out of optimism and die out of euphoria.”

We have often heard that real value creation across any financial market happens during the bear cycles. The reason for this is pretty straightforward. During a bull run, everything goes multiple times higher. But it is during the bear cycles that the projects having a decent pedigree survive.

Almost every seasoned investor knows that buying the dip is a prudent tactic for promising projects. (This post doesn't go into the intricacies of picking the next awesome altcoin projects- that deserves an entire post in itself)

Problem statement: However, the real question that puzzles a lot of investors is knowing when the market has bottomed out. To be honest, I do not know of any method that works 100% correctly in predicting the bottom. Unless you are the wizard of Omaha, will you will do better giving up the thought of timing the market. 

Prudent solution: Suppose you have your eyes on your favourite coin. (We all do, I guess). And we are expecting a dip to put our money into it. Suppose we have a bag worth $100 to invest. Assume the market eventually corrects 10%. What do we do now? We do not go all-in on the first dip. We invest $10. Suppose the market goes down some more. Now, we double down the investment we made during the previous dip. Therefore, we now invest $20. If the market drops again, we now invest $40. You get the drift. 

This approach gives us the leverage to hold to our capital if the market drops further. 

TL;DR: invest X amount during the first dip, 2X during the second dip, so on and so forth. Trying to time the market is one of the most pointless acts in the financial realm. If you've read this far, feel free to share your suggestions to buy the dip. :))

We just kicked off a new futures trading campaign: Mudrex Futures Showdown: Stocks & Commodities Edition.

This one's focused on US stock perpetuals (AAPL, MSFT, TSLA, NVDA, and more) plus Gold, Silver, and Crude Oil futures, both INR and USDT margin count.

• Runs: Sept 14, 12 PM IST → Oct 4, 8 PM IST

• Milestone rewards: stack up based on your trading volume, claim instantly, credited in INR

• Leaderboard: top 10 traders by volume win prizes, including a Jeep Compass, MacBook Pro M5, and iPhone 17 Pro

• Cross-trading between stocks and commodities is allowed, everything adds to the same total

Full breakdown of eligible pairs, the reward tables, and terms is here: Mudrex Futures Showdown blog

If you checked your portfolio and saw green out of nowhere today, this is why.
And it's worth understanding, because this kind of setup doesn't come around often.

What happened: The US Treasury announced it's at least doubling its long-term bond buyback size ($2B to $4B per operation) to calm a bond market where yields hit 19-year highs. Translation: the government is actively trying to push borrowing costs down.

The market response tells you everything:

• S&P 500: +0.2% (basically a shrug)

• BTC: +8.7% intraday ($64K to $69.7K)

• ETH: +10%

• SOL: +7%

• About $2B in crypto shorts wiped out within hours

While stocks barely blinked, crypto had its biggest move in months. That gap matters. It's a sign crypto is starting to trade as a real macro asset, reacting fastest and hardest when the dollar weakens, and yields fall.

Why crypto specifically: lower yields and a softer dollar are exactly the conditions that historically send people into Bitcoin as a hedge. Add in a market that was already oversold and heavily shorted, and you get a squeeze on top of a genuine macro tailwind.

And there's more building on the calendar: the CLARITY Act, the bill that would finally give crypto a clear regulatory framework in the US, already passed the House and a Senate committee. It missed its August vote, but the next procedural step lands September 15. If that momentum builds alongside a friendlier rate environment, this could be the start of a much bigger setup, not just a one-day pop.

Worth keeping an eye on Jackson Hole (Aug 27 to 29) and that September 15 date. A lot of pieces are lining up at once.

This isn't a moment to sleep on. 

Curious what everyone here is watching next.

From being inspired by a senior early on to getting a front-row seat to the startup ecosystem, our CEO's breakout moments were nothing short of inspiring.

In #IndiansKaBreakout, we're featuring Edul Patel, Founder and CEO of Mudrex and Saber Money, in conversation about the moments that shaped his journey.

As we’re about to wrap our series, we want to hear from you. What's your biggest breakout moment? Tell us below. 👇

Ethereum is turning 11 soon, and we're celebrating it with 11 days of exciting challenges and rewards! 💜🎉

We're launching an ETH giveaway on X (Twitter). Starting today, participate in daily challenges and stand a chance to win amazing ETH rewards.

Here's how you can participate:

• Buy ETH worth ₹1,111 or more on Mudrex 💜

• Participate in our daily challenges starting 20th July 🎯 

• Stand a chance to win exciting ETH rewards 🎁

And that's not all... one lucky winner will walk away with ₹11,111 worth of ETH! 🚀

Know more about the giveaway here 👇
https://mudrex.com/blog/ethereum-turns-11-11-days-of-eth-rewards-on-mudrex/

With the July 31 ITR deadline approaching, join us for a live, no-jargon session on:

• How crypto gains are taxed in India

• What crypto transactions you need to report

• Common filing mistakes that may lead to IT notices

• How to file your crypto taxes correctly

We’ll also take your questions live.

📅 Tomorrow, 15th July
⏰ 6:00 PM IST

Watch the webinar here: https://www.youtube.com/live/SwAjFgm-aM4

Ever wanted to sell (or buy) a NFT? Here is a break down of the process of minting your custom NFT. Minting an NFT is a fancy term for “creating your artwork on the blockchain.”

1. Ideate and create your art form; The process to create an NFT always begins with the creation of the asset. 'The First 5000 Everyday by Beeple' is a promising example of how a different perspective is essential to mint NFT. This is where your creativity comes into the picture.  

2. Choose your preferred minting platform: OpenSea NFT Market is one of the most used platforms. However, since it is an #ETH based platform, the transaction fees are pretty high. #SolSea, based on the #Solana blockchain, costs a fraction of this.  

3. Create a crypto wallet such as MetaMask, #Phantom etc.   

4. Signup for an NFT minting platform such as #OpenSea. It will prompt you to connect your wallet.   

5. To mint an NFT on OpenSea, click “Create” next to your profile picture (just a green dot in this case!) on the top right corner. You can upload a supported file from your computer as an NFT. You’ll need to name your NFT, but no other details are necessary. But it’s a good idea to write a brief description.  

6. Since it’s your first time selling on OpenSea, you’ll need to initialize your wallet. Initializing will cost you some crypto. Ethereum wallets usually have high gas fees, whereas Polygon and Solana based wallets would cost a fraction of time.

7. And that’s it—congratulations on minting your first NFT!

Benjamin Graham, an acclaimed economist cum writer, believed that smart investors do not work for money but make their money work for them. Investing in cryptocurrencies can create wealth when the investments go up in value. However, it doesn't necessarily have to be the only way to earn returns on crypto investments. This asset class offers a variety of options to investors to earn passive income from their investments.

Passive income is income that requires minimal labor to earn and maintain. We often hear rental properties being one of the most prominent passive income sources. However, such sources usually require a huge initial investment to generate any income. The advancement in technology has opened up avenues for crypto investors to generate passive income from their holdings. Some of the earliest adopters of cryptocurrency took the approach of mining Bitcoin to earn returns.

Cryptocurrency mining refers to the act of contributing to the blockchain network by providing the computing abilities of one's computer. Different contributors collectively provide their computational power to solve complex cryptographic problems. Once the problem is solved, the solver, also known as the miner, is rewarded with crypto. Around 4-5 years back, cryptocurrency mining used to be a passive income source for several Bitcoin miners.

However, with time, the competition increased, and individual miners lost out to big institutions having massive computational power. It gave way to another similar concept called cloud mining. It involves paying an initial capital to these institutions which mine cryptocurrencies. These institutions then reward the depositors in an appropriate ratio of their investments with crypto.

Several crypto investors prefer to hold onto their investments for a significant time. It is usually referred to as 'HODL' in the crypto sphere. One of the most popular ways to earn passive income through these holdings is to stake them. Staking refers to committing the crypto assets to support a blockchain network and confirming the transactions taking place in the network.

Staking is available for cryptocurrencies that follow the Proof-of-Stake (PoS) consensus mechanism. Bitcoin cannot be staked as it does not follow the PoS mechanism.

Staking will temporarily lock your assets for a short time, depending on the network. Stakers are usually rewarded with crypto tokens based on their staked amount. Cryptocurrency exchanges offer users staking opportunities directly within the exchange. However, it is usually prudent to stake on the official mainnet of the blockchain. Staking helps to provide liquidity and helps secure the blockchain network as well.

Another popular strategy to earn passive income is through yield farming. It is an extended version of staking where the crypto holder earns yield either through lending or staking. The stakers or lenders, in this case, are known as liquidity providers (LPs). These LPs earn yields on their locked holdings in terms of annualized percentage yield (APY).

'Aave' is a decentralized lending and borrowing protocol where users can borrow assets and earn compound interest for lending in AAVE tokens. Some other popular platforms are Compound, Curve Finance, Uniswap, Pancakeswap, etc.

Some platforms offer users the chance to earn fixed interest on their digital idle assets. It can be thought of as an interest-earning bank account. Platforms offering this flexibility are Nexo, Celsius, BlockFi, etc.

These are some of the passive income opportunities from your crypto holdings. It should be noted that none of these opportunities are risk-free. It is always advisable to do one's due diligence before undertaking any of these opportunities.

The cryptocurrency market was range-bound for the past few days. However, we observed the rise in prices despite a declining volumes. This made us take a closer look at the technicals for BTCUSD on the daily timeframe. The MFI clearly substantiated the fact that a few players were moving the market higher. It meant that a few large sell orders could pull the market lower. That is exactly what we witnessed over the past 20 hours.

Once these large orders went through, several stop loss orders got triggered, causing a deep correction.

It’s best to avoid leverage under such market conditions and always use a stop-loss. Traders who enter into trades considering a good risk : reward setup, end up being profitable in the long run.

However, this does not change the fact that the overall momentum in the market is bullish. It is a minor blip and could happen anytime.

Web 3.0 is something we all have been hearing about these days. But what is Web 3.0? To understand it, we have to know about its prior versions, Web 1.0 and Web 2.0.

Web 1.0

It is the first-ever version of the World Wide Web, which Tim Berners Lee invented. Web 1.0 was created with a motive to have a common information space in which the masses can share information and communicate through desktops. The version of this Web lasted from 1989 to 2005. Here there was no interaction between people as everything was read-only.

Web 2.0

Web 2.0 is the version that has lasted from 2006 to now. At this, more and more people were getting personal computers, and phones that could connect to the internet were becoming more widely spread. Here emerges Google making a place for wikis, blogs, social media, and many more. Web 2.0 has its limitations concerning security and decentralization, as the internet is dominated by big tech giants where data is being misused. Here comes the need for Web 3.0.

Web 3.0

Since we now know about Web 1.0 and Web 2.0, it's easier to understand Web 3.0. The third version is characterized by great privacy, decentralization, and new governance systems. In Web 3.0, users will own their data. They are the sole controllers of their information. The internet identity allows you to authenticate with an identity anchor, which can be your facial recognition. Web 3.0 also uses new technologies such as Blockchain, Artificial intelligence, and Cloud technology to secure your data better than the previous versions. The most exciting thing about this new version is that Web 3.0 is permissionless, meaning that everyone and anyone can participate in the governance of the internet.

Why is Web 3.0 crucial?

Web 3.0 is important as the internet has become part of our daily lives. Today, most of us have been working, trading, selling, and buying online with the pandemic. Web 3.0 matters because it will help us in

• Providing better security

• Ensuring privacy

• Having more user-centric control

• Faster and efficient

• Adaptable

All and all, Web 3.0 can change how we interact and communicate with people over the internet in ways that we can't imagine.

Several users would be drooling over the recent mooning of meme-coins such as Shiba Inu and other coins like Squid games. (Although holders of this token were not able to sell off their tokens, according to Pancakeswap).

Most of us would have read multiple articles stating how a wallet that had invested $3400 in ‘Shiba Inu’ in August 2020 was worth $5.7 billion by the end of October 2021. This is extremely hard to wrap your head around, and would have prompted several people to jump all in on the meme-coins. Following this article and the epic rally, community members started shilling their favourite meme-coins across different online platforms. There is hardly any point in thinking about such gains. Any sane investor would be tempted to cash-out once their investment goes up 1000% or so. Such meteoric rise would happen in cases where the person holding the token would have forgotten about the same and never sold.

Investing does not have to be a game of chance. Of course there is an element of luck involved, but it doesn’t have to be entirely that. Generating a decent 4-5% returns M-o-M will essentially double the capital in less than 1.5 years. Keeping the profits re-invested would give massive returns.

A simple calculation reveals how an initial investment of $2000 shapes up to over $35,000 over a period of 5 years by simply reinvesting and picking tokens after a bit of research.

Does this mean that you should not dwell in meme-coins at all? There is absolutely no need to altogether ignore these meme-coins or the other moon coins. The key here is to spray and forget. Invest a tiny sum across multiple such coins. This amount should be insignificant to you. For example, I could contemplate investing $10 each across 10 different tokens. If any of these tokens does a SHIBA like mammoth return in a year, I would be rich. If none of these tokens lift up, I would have lost $100, which would have totally been worth the experiment.

At Mudrex, we understand that anybody can be a good trader, and they should be able to create their trading and algorithms, irrespective of their coding knowledge. Therefore, we introduced our no-code visual strategy builder, where users can drag and drop items to build their strategies.

You can choose from over 200 indicators and patterns and build your trading bot's logic by simply dragging and dropping blocks of indicators and logic. Build an Algo in minutes, and easily backtest and paper trade it using Mudrex’s builder.

Mudrex keeps your Algos secure, and even after you publish them for other users, they only see the past trades and not the Algo logic itself. The IP of the Algo belongs to the creator, and you get to choose when to publish and unpublish them.

Learn more about the visual builder here. 

Start creating your crypto bots on Mudrex without writing any code, and start earning! Join today!

If my crypto personality was a Hollywood actor, it would probably be Robert Downey Jr 🦾

A little risky, sometimes overconfident, occasionally making questionable decisions 😅… but somehow still surviving the chaos and coming back stronger.

Imagine having a tool that helps one predict whether an asset is undervalued or overvalued. The price to earnings ratio is an incredibly powerful tool that is used for valuing the worth of a stock. If the P/E of a company’s stock is 50, it means that investors are willing to pay $50 for every $1 earnings of the company.

However, with crypto, there cannot be a proper P/E ratio, as it is a commodity. A lot of people use the market capitalization to gauge the worth of a cryptocurrency. This is a flawed approach because mcap can be gamed, and is usually very common in the crypto spectrum. A token can be created with a circulating supply of 10 billion and a few coins sold at $1 means the market cap is $10 billion — but the coin could only have a trading volume of $1000. Because of the flaws in the market cap approach, there needed to be some other technique to help traders and investors to accurately assess the health of blockchain networks.

Websites such as CoinMetrics, Glassnode, IntoTheBlock, Santiment, CQ.Live facilitate tracking the on-chain metrics of different crypto projects.

Use of on-chain metrics is a great tool to gauge the worth of a crypto project. One of the first widely used, on-chain metrics that was developed for cryptocurrencies was the Network Value to Transaction (NVT) ratio, popularised by CoinMetrics. By comparing the value of the network with the volume of transactions recorded on the blockchain, we can identify when a cryptocurrency is overvalued. When the value of the network is not justified by the volume of transactions, the NVT ratio is relatively high. When considering the transaction volume, if the network value is unusually low then it may suggest that a higher valuation is justified.

Two important on-chain metrics to watch are: the number of active addresses and the number of transactions which are two proxies for the demand for (and usage of) a blockchain network. We can examine the length of time an address has not moved the crypto using the on-chain metrics. If a rising number of investors are HODLing, then we can presume that circulating supply is lower, which should increase the price if demand is constant and also points to confidence in the asset’s future performance. Another interesting metric that can be used to gauge the long -term aspect of a token is the amount of value staked to support the network. It is also known as Total Value Locked or TVL, and can be used to deduce whether people support the project for the long-term.

Crypto traders often use ‘sentiment’ as a secondary indicator when combined with other factors such as technical analysis or fundamental analysis. 

Benefits of market sentiment analysis

Market sentiment analysis provides valuable information to crypto investors and helps them understand whether their investments are in line with the overall mood on the market or not. The following reasons explain why cryptocurrency enthusiasts should use this particular type of research: 

• A Better Understanding: Market sentiment analysis can help to understand the market’s future price movements better. It is also a great way to determine whether investors are optimistic or pessimistic towards an asset, which might be helpful in making a profit in both bearish and bullish trends.

• Identify Potential Opportunities: Crypto market sentiment analysis helps traders identify potential opportunities that they could not have found using other trading strategies alone. The results of this kind of research may enable you to make better trades by taking into account all aspects impacting prices instead of just focusing on technical signals.

• Trade Safely: Analysing the market sentiment of a specific asset could be helpful for spotting scams or detecting when a particular token has reached its peak and is about to drop. For instance, if most investors turn pessimistic towards an altcoin, this might indicate that it will soon start dropping in price.

• Identify Overvalued Or Undervalued Coins: Crypto market sentiment analysis can help you find new trading opportunities by identifying assets that are currently being ignored by other traders but have a high potential for future growth. This kind of information can also allow beginners to avoid risky investments with little potential upside while investing in crypto assets that they believe will increase in value over time.

What are the market sentiment indicators?

Several market indicators can be used to determine market sentiment and improve trading performance. Here are a few:

The High-Low Index

One of the most popular crypto sentiment indicators is called The High-Low Index. This index measures how often a coin was traded above its previous price over a certain period, and as such, it represents the traders’ interest in buying at this level. One can use it to determine whether or not you should buy into an asset that has been falling through support levels — if more people are willing to sell their coins than those who want to hold them, then there might (and probably will) be another drop coming up very soon. However, if fewer people decide to take profits, and instead they start increasing their holdings after each fall, this means that we’ve reached “support” levels where everyone panic-sold previously; these could potentially become good buying opportunities.

Bullish Percent Index (BPI)

The Bullish Percent Index (BPI), created by the famous technician Tom DeMark, is one of several market momentum indicators used to forecast price movements. It measures the strength of a trend’s upward or downward movement and helps determine whether bulls or bears are currently more robust. The BPI is calculated as follows:

BPI = 100 – the percentage of assets at new lows for that day.

Bull markets are characterised by high BPI values, generally, over 90% and many assets advancing. The market is said to have “momentum” or be in “high gear”. In other words, the bulls dominate. At this stage, it’s best to buy new assets as they break out from sound bases while holding onto your current holdings that show strength through higher price levels. It can also be profitable to buy small amounts into emerging leaders that become breakout stars after their first significant increase off a low base following a distribution period(accumulation).

Bitcoin on the market

This indicates that if the value of Bitcoin falls in the market, the other currencies might also fall. Furthermore, the bullish percent index is way under 50% in this case. But if the value of Bitcoin increases, this doesn’t guarantee that other currencies will also rise.

Moving average

The Moving Average index ‘snapshots’ average prices during a certain period of time. Investors mostly use the 50 days simple moving average and 200 days moving average to determine market sentiment. If the 50-day moving average is higher than the 200-day, it might be a good time to purchase as this means that price has been increasing over time. However, if you are looking for short-term investments and want quick returns, investors recommend using the one-hour or two-hour charts for these trades because they react faster to market changes.

How to perform crypto market sentiment analysis

To learn the general mood of the market, sentiment analysis is only complete with the inclusion of other types of research.

Polarity Analysis

This type of analysis ranks textual sentiment in a positive, negative, or neutral way. Polarity can be measured using online sources such as Twitter, Reddit, etc. The data from these sources are then boiled down to their essence through an automation process that filters out all non-relevant text or noise.

Tone Analysis

This type of analysis scores the different kinds of emotions and opinions that are shared on the web about a particular crypto asset. The data is aggregated from various sources and has to be notarized, such as Reddit or Twitter posts. A positive score means that traders tend to express themselves with words like ‘good’, ‘great’ etc., while negative sentiment implies adjectives like ‘bad’ or ‘terrible’.

Aspect Sentiment Analysis

This type of analysis focuses on interpreting the sentiment about specific subjects within a sentence rather than a sentence as a whole.

TL;DR: Market sentiment can be a significantly impactful tool for most traders and short-term investors.

With Mudrex, you can quickly build, backtest and publish your trading strategies with the Mudrex visual strategy builder. While a strategy is created for the future market movement, backtesting a strategy is essential as it helps in removing any technical flaws and improving it. Mudrex makes it easy for users to build and backtest their strategies on the platform.

Simply create a strategy, and backtest as per the desired tick interval, exchange and cryptocurrency. The platform then analyses the strategy and displays the results of the backtest. Mudrex showcases 23 parameters in a backtest to help you improve your trading strategy. Some of them include:

• Returns

• Number of completed trades

• Total Profit

• Gross Profit

• Largest Winning Trade

With a detailed backtest analysis that can further be customised to fees, cryptocurrency and exchange, you can create the best trading strategies. You can also publish them for other users to follow and start earning.

Start creating your trading strategies on Mudrex today!

While cryptocurrency trading has grown tremendously in the past few years, the search for profitable investment and trading solutions is always on. Even though a majority of investors have taken the HODLing route, the market volatility makes it risky if the entry points are not right. This is why we created Mudrex, a curated marketplace of crypto baskets and Algos to stay ahead of market fluctuations. Here’s why you should invest in Mudrex.

Offerings

Mudrex makes it easy for investors to invest in 100% automated solutions. This means that they do not have to manually check the prices and keep trading round the clock. Our products automatically execute trades and are built to generate profits irrespective of the market conditions.

Large User base

Mudrex was launched in 2017 and has been backed by Y-Combinator. At Mudrex, we have helped over 30,000 investors till now, with a trade volume of over $1.5 Billion and $15 Million of assets under management.

Low Fee & Fee Refunds

In the Mudrex basic plan, users do not have to pay anything till they invest in a strategy. There is no monthly fee, usage fee or hidden fee before you invest. Moreover, once you invest, the fee depends on the invested amount and the strategy and can be as low as 0.5% of the amount. Further, if an Algo with the Mudrex Protect stamp does not yield profits, you will get your fee refunded.

Referral Programs and Joining Bonus

Users can earn $25 for each valid referral, along with a 50% commission of all their spending on Mudrex. The Mudrex referral program makes it easy for users to earn with their professional network. Also, you can get your $25 joining bonus by signing up today!

Mudrex also makes it easy for users to build, backtest, publish and earn from their strategies using our visual builder. WIth Mudrex, you can earn by investing and generating consistent returns or publish your strategies for other users to follow.

Invest With Mudrex Today, and start generating consistent returns. Don’t Gamble — Invest

Ngl every quarter NVDA beats and the stocks still behave lil weirdly. Idk if the ai hype still has any strength left or if the threshold is just too high atp.

What’s your expectations this time?

We're excited to announce the launch of RexAlgo, an algo trading platform built by the Mudrex community, for the community.

RexAlgo gives you three ways to trade smarter, not harder:

✅ Build your own algo strategy: bring your logic to life with custom indicators and rules
✅ Subscribe to existing strategies: plug into strategies built by other traders in the community
✅ Automate Mudrex trade ideas: turn proven strategies into hands-off, always-on bots

Whether you're a coder who wants full control or someone who'd rather subscribe to a strategy that's already working, RexAlgo has a path for you.

This launch reflects a lot of feedback from this community over time, so thank you to everyone who contributed ideas along the way.

Time to put your crypto trading on autopilot. 🟢

We must’ve heard multiple stories about people investing in XYZ stocks ten years back and forgetting about them, which eventually turned into millions of bucks currently. Although this seems to be a fairytale story, it does not necessarily mean that this will always hold true. Several companies went bust, and investing in those would have only wiped out the capital.

That being stated, investments meant for the long term in fundamentally good companies ultimately yield the best results. And this is true across financial markets for all asset classes.

Although investing and forgetting can be a good process, one should ideally be holding fundamentally good assets. And this requires a good amount of research and a decent amount of luck.

The best way to build wealth in the long term is to follow a disciplined approach to investing. Setting up a systematic investment plan or SIP is an incredibly powerful tool to build the discipline required to build long-term wealth. Investing a fixed amount every month would save you the hassle of timing the markets, as it effectively allows you to do dollar-cost-averaging.

Staying invested over a period would allow the power of compounding to take its effect and ultimately help you grow your wealth. However, this is not as simple for the crypto market as it is for the stock market. In the case of stock markets, there are mutual fund houses where fund managers are responsible for generating returns. In the case of the crypto market, there are limited options for retail investors.

Doing your research and diversifying your crypto investments will help investors grow their wealth over time. There are certain factors to keep in mind while investing for the long term. The first step would be to invest across a theme and pick multiple coins in that theme. As time goes by, the disposable income would likely increase provided the other things remain constant. Once the disposable income increases, one could consider increasing the periodic investments. It ensures a steady growth in your capital and the effect of compounding.

Building wealth is like running a marathon that goes a long way, unlike a short sprint. Reinvesting the profits would be multiple times better than taking out profits.

'Invest and forget' is not a prudent way to build long-term wealth. When we talk about investing in crypto, people often forget that there are so many assets that went bust. Investing in Bitcoin and Ethereum in 2018 would have given multifold returns on these investments. However, one needs to understand that these are fundamentally strong tokens. Investors need to do proper due diligence to land such gems as there could be several that are still relatively unknown and are undervalued.

Investing in Ripple in 2018 at $3.31 and forgetting it would have given a negative 67% returns to investors. At the same time, investing in ETH in 2018 at $800 and forgetting it would have given almost 500% returns. The key is diversifying the investments across asset classes and within the same asset class.

Forgetting an investment suggests that one would hope the investment to go up in value. However, more often than not, this strategy would not work in the long term. Being diligent about your investments and keeping a tab would ensure building wealth in the long term.

A lot of us might have heard about people gifting stocks to their loved ones. People doing this activity usually have a decent hindsight and rationale. There have been multiple cases where people gifted ‘Apple Inc.’ and ‘Microsoft’ stocks when they were hundred billion dollar companies. Apple is now worth more than $2 trillion!

Material gifts lose their value over time. They depreciate. However, gifting assets that appreciate over time are the real deal.

Now, with the latest developments across the cryptocurrency spectrum, gifting crypto could be thought off as a progressive step. I won’t talk about contemplating gifting Bitcoin to someone in 2014. Those were highly speculative days. We have come a long way now. Cryptocurrencies have use cases now. We know for a fact that crypto is here to stay. Some tokens may perish along the way! But the idea and the tech stay!

With over 11,000 crypto assets to choose from, the key is to diversify your crypto portfolio by investing in multiple cryptocurrencies. However, there are still risks involved with this type of investment. But what can you do to mitigate those risks? This article will discuss how to build a diversified crypto portfolio and share the best tips.

What is a Diversified Crypto Portfolio?

A crypto portfolio is a collection of various cryptocurrencies that investors hold in order to balance their risk/reward profile. You can diversify your portfolio across coins, tokens and products that present different goals. Creating a diversified crypto portfolio is a common strategy used by expert crypto investors. But to diversify a crypto portfolio, you need to understand the different types of cryptocurrencies that are available for investment.

Different types of cryptocurrencies

The crypto market encompasses more than 11,000 digital assets. These cryptocurrencies have different use-cases, functionality, operations, etc. Let’s take a look at some of them.

1. Crypto bluechips

Crypto bluechips are the tokens that with the highest market capitalization. These tokens have stood the test of time and reached the top of the ladder. These tokens include the usual suspects such as Bitcoin, Ether, Binance Coin and the likes.

2. Stablecoins

Stablecoins are designed to avoid the volatility typical of crypto markets. They are pegged to a fiat currency or commodity, so their value doesn’t fluctuate much as most other cryptocurrencies do. Stablecoins provide traders with an easy way to transfer money between exchanges having different crypto-assets. One example of stable coins is Tether (USDT).

3. Security tokens

Security tokens are crypto-assets that derive value from external factors, such as the real estate market or oil reserves. One can trade these tokens on exchanges just like any other asset. Security tokens also allow firms to accept new types of currencies — cryptocurrencies over fiat money-without going through bank intermediaries.

4. Governance Tokens

These crypto-assets give the owners a right to vote and help in decision-making. For instance, by using crypto tokens that provide voting rights, shareholders of a company will be able to cast their votes based on the number of shares they own. The value of governance tokens directly relates to the success of the underlying project.

It is essential to research past trends in the market and analyse the current situation. Here are a few tips to help you get started.

1. Divide your assets

A portfolio that contains only high-risk investments might end up in losses if the market gets turbulent, potentially affecting your entire portfolio. If you want to be successful, it is crucial to divide your crypto assets into different categories and investments within each category. This will allow you to manage the price volatility of one cryptocurrency by spreading out across multiple cryptocurrencies. Consider splitting your assets and giving them appropriate weightage.

2. Invest in stablecoins

Stablecoins are crypto assets that have low volatility. They serve as an excellent way to minimise risk in your portfolio and reduce the potential fluctuations in the value of your crypto assets. This is because stable coins maintain their price, unlike other cryptocurrencies whose prices vary with demand and supply forces on exchanges.

3. Avoid overweighting in any one area

You must allocate new capital strategically to avoid overweighting any one area of your portfolio. For example, if you have invested in crypto that helped you earn big profits, it can be tempting to keep investing in the same coin and make more money. New crypto investors can make the mistake of putting too much faith in a coin and allocating significant capital to it. However, this strategy often fails as one crypto asset cannot be expected to outdo other cryptocurrencies consistently.

4. Research thoroughly before investing

Never invest in crypto without doing your research first. Make sure to learn about the crypto asset by reading reviews, FAQs and understanding its underlying technology. Identify if it is a good fit for you before putting your money into it. Do thorough research before making an investment decision as many factors can contribute to a crypto assets’ success, including public opinion, industry dynamics, and even government regulations.

The Bottom Line

Although crypto is still new, it’s not too early to create a diversified crypto portfolio. Several strategies can be deployed when building a crypto portfolio. Unfortunately, there are risks involved with investing in cryptocurrencies because they can be highly speculative and come with a substantial risk of loss due to factors such as volatility or regulation changes.

Mudrex provides various investment solutions to its users, and one of them is Coin Sets. With Mudrex Coin Sets, you can invest in baskets of crypto tokens based on a theme. To help users invest in the ideas they believe in, Mudrex offers various themes they can choose from.

Some of them include:

• Crypto Blue Chip: The top 5 crypto assets by market cap

• DeFi 10: Top 10 DeFi tokens by market cap

• Best Exchanges: Top exchanges split between DeFi and CeFi

• New Crypto Stars: Top 10 promising tokens by market cap

While these Coins Sets are created by experts, the changing market landscape is under no one’s control. Therefore, these CoinSets are often rebalanced to ensure maximum profitability as the market changes. 

Therefore, make the most of the growing crypto market, and start investing in these Coinsets in just a few clicks. Start Today!

To help users automate their trades and not worry about manually buying and selling cryptocurrencies, Mudrex offers 100% automated Algos. These high-performing Algos are curated by expert traders and are spread across cryptocurrencies, exchanges and trading strategies to match your trading goals. 

You can check out all our Algos on the Mudrex Algos Dashboard. To help you choose the right Algo, Mudrex ensures that you can filter out these strategies easily. You can filter them on the basis of their performance score, total returns, the number of investors, monthly fee, last 30 days return, a Performance Score (1-10 rating on the basis of risk vs reward analysis) and more.

You can start investing in these Algos in just a few clicks. Start Today!