As you may know, there are many trading strategies that can be adopted by asset managers. Some asset managers are focused on long term strategies, some are short term traders, some daily trade, some use trading bots, some rely more on the news, some on the analysis of the market, etc.
There are very many strategies and tools that an asset manager can use to manage your portfolio. Every strategy has advantages and disadvantages. For example in a growing market holding position if invested at the bottom can be a very good strategy on the other hand very volatile markets like cryptocurrencies can sometimes bring a lot more if they are traded on a daily basis using so-called leverage(borrowing extra money from the exchange to earn more)or with the use of bots. Traditional as well as crypto markets go by very similar trading laws, which means that similar strategies can be used for both.
Which strategy to pick?
As mentioned above there are very many options as to how a portfolio manager can manage your portfolio. How will you know you picked the right one?
It depends on what kind of investor you are. If you are investing only 5-10% of your total portfolio into cryptocurrencies and you are aware of the risks and opportunities that these markets pose, then you may decide that you would like someone to use leverage trading for your portfolio and to try and make the most out of the market in either bullish or bearish trends.
You might be investing only 5-10% of your total portfolio into cryptocurrencies and you are still very conservative investor then you might want someone who is not exposing your assets so much and is more reserved when it comes to using leverage trading or using trading only crypto-crypto, but rather uses fiat(USD, EURO) position to safeguard the gains in case the market turn sideways.
The point is that it’s very important that you get to know yourself as an investor and that you decide on your strategy before you entrust someone with your assets how they will be managed and why. The second important thing is also that you get to know as much as you can about the trading strategy of the institution that you will entrust your money to.
How we do it
Our goal at Highwater has always been to first and foremost provide our customers with transparency, liquidity, and variability, so our strategies also adapt to the current state of the market. In the future, we are also planning on bringing versatility and variability to our managing options by introducing different strategies for our customers.
For example, you can have a long hold strategy where you will invest for a longer period of time and turn more to the hold or the so-called ‘’hodl’’ position, some of your assets could be managed by a bot that trades on a daily basis and some by taking into the account news and technical analysis of the markets.
Having an option to allocate some assets into each strategy helps you diversify your portfolio invested into cryptocurrencies. That will give you an option to invest in crypto very conservatively or very risk-taking at the same time or just pick either. A very conservative or very aggressive approach.
Our goal at the moment as the markets are still fairly new is that we grow our customer’s assets value in EUR or USD position so that they can buy more of so-called real assets in the long term. When some only acquire cryptocurrencies as they are strong believers and they hold them for the long term and they like to grow their position in cryptocurrencies. We believe in digital/cryptocurrencies yet we like to be on the safe side that’s why we suggest all our customers also to invest in other assets such as gold or stocks, to diversify their portfolios and in case of losses at any market the other can compensate for the loss.
Our services already provide a lot of safety as we have professional traders to take care of our customer’s portfolios and on top of being transparent, liquid and safe we intend to push our services even further by providing diversified strategies for each customer.
We are aware that digital/crypto markets are very new and volatile that gives this kind of investment many opportunities as well as many potential risks, more about the differences in investing in gold or bitcoin you can read in one of our earlier articles on our blog. But if your portfolio is managed by a professional especially if it’s diversified among different strategies you have an opportunity to benefit on many more levels.
Word of advice
As investing in digital/crypto-assets can be very lucrative there are also risks. That’s why we advise anyone who’s investing in general to educate themselves. Don’t forget that the best investment you can make is into your knowledge, knowledge brings the best interests as the founder of America Benjamin Franklin famously said. Continue to follow us on social media and on our blog and we will do our best to help you with the education as well as transparent, liquid and diverse investing strategies.
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