1. Home
  2. Getting Started
  3. How to create a cryptocurrency portfolio step by step?

How to create a cryptocurrency portfolio step by step?

Create a cryptocurrency portfolio. In order to create a portfolio in steps, you need to create a portfolio name, select an interface and connect it using API keys. How to connect the appropriate exchange and create API keys, read here.

cryptocurrency API keys
Add API keys and connect exchange

The process of creating a cryptocurrency portfolio in steps.

  1. Create a cryptocurrency portfolio. First of all you need to select the cryptocurrencies you are interested in to create a portfolio.
choose cryptocurrencies
Choose crypto and start analysis

2. Once you have chosen cryptocurrencies and started the analysis, the next step is to assess the degree of correlation of your portfolio.

You will see the correlation value of your portfolio and each cryptocurrency separately, you can also switch between the correlation evaluation time (the algorithm analyzes cryptocurrencies from the beginning of their creation, meaning if the cryptocurrency came out 1 year ago, and you chose the interval for analysis in 2a years, then The result for 1 year will be shown, from the beginning of the listing of the coin on the exchange)

In addition, you can switch between positive and negative filters.

When you click on show matrix, you will see a modal window with the output of the matrix of the collected portfolio itself.

cryptocurrency matrix correlation
cryptocurrency matrix correlation

At the next stage, you can go through the portfolio optimization procedure using the Markowitz model.

You need to select dates to evaluate the test period and click the “calculate” button

Cryptocurrency Portfolio Optimization
Step three: Portfolio optimization

You can switch between a minimally volatile portfolio, optimal and highly volatile.

In the tab on the right, you will see the distribution of cryptocurrencies and the weight of each in the portfolio. When you change the volatility using the slider, you will see how the values of the cryptocurrency weights in the portfolio change. The chart of the efficient frontier is also located below.

Crypto portfolio sharpe ratio
Efficient frontier

You can change the weight in the portfolio as desired, after clicking on the more button.

Or you can add or remove assets, as well as change the weight of the assets as you wish in the “custom your weight” section

Cryptocurrency allocated assets
Custom your weight

The last section of portfolio activation suggests changing the portfolio balance or moving to the testing section. Read more about backtest mode here. You can also change the weight at this point.

Attention! When you click on the activation button, the portfolio will be rebalanced and your chosen rebalancing settings will be saved and activated.

Now you know how to create a cryptocurrency portfolio step by step. Now you can read more about portfolio optimization.

Updated on October 14, 2019

Was this article helpful?

Related Articles