This document is aimed at the entire audience that is totally new to the world of investments and cryptocurrencies, in order to obtain knowledge about portfolio diversification and being able to answer that question that always appears about which assets should you invest in. .
The cryptocurrency market is characterized by its high volatility, so a very good strategy that investors often use to reduce their investment risk is to diversify their portfolio. Although some assets are quite correlated, that is, they tend to react in the same way to some news, event or situation that affects the price, diversification will help focus a portfolio on a variety of projects that add value to the society, and because they are innovative projects and some of them are still in a development stage,diversifying will help you reduce the risk of some of them suffering any adversity and will also take advantage of the exponential growth of some of them.
Note: Smartrader does NOT provide financial advisory services and this is not financial advise, the following templates have been generated in order to facilitate the process of understanding and selecting cryptocurrencies for the activation of investment tools by users. Smartrader accepts no responsibility for investment decisions made based on this information.
What are Smart-Baskets?
Smart-Baskets are templates that provide portfolio options diversified in various ways, which contain assets with great potential for future growth according to the perspective of the Smartrader analysis team.
- These templates were divided taking into account different characteristics such as market capitalization and the type of projects that support each of the cryptocurrencies.
- Each of them has a series of assets related in a certain way, but at the same time with characteristics that differentiate them from one another.
- The assets that are inside a Smart-Basket are accompanied by a percentage, which represents the fraction of the total investment that will be allocated to each of the assets.
Meet the Smart-Baskets
Below we show you various Smart-Baskets with a brief description of each of them, so that you understand what each of them consists of and you can make the best choice when starting your path as a crypto investor hand in hand with the tools from Smartrader.
Market Cap
This Smart-Basket is focused on the assets with the highest market capitalization in the world of cryptocurrencies, that is, it takes into account the largest and most important today regardless of the line of business or the focus of the project that supports them, giving greater weight to those that have a greater capital volume in the market.
Beginner version:
- Bitcoin (BTC) 35%
- Ethereum (ETH) 30%
- Ripple (XRP) 17%
- Cardano (ADA) 18%
Advanced version:
- Bitcoin (BTC) 27%
- Ripple (XRP) 8%
- Solana (SOL) 11%
- Ethereum (ETH) 14%
- Polkadot (DOT) 7%
- Terra (LUNA) 7%
- Avalanche (AVAX) 8%
- Polygon (MATIC) 8%
- Cardano (ADA) 6%
- Dogecoin (DOGE) 4%
Metaverses
This Smart-Basket is focused on the most important assets currently related to the development of decentralized metaverses, that is, virtual worlds created on blockchain in which users own all the goods they acquire within them, whether it can be any item for your character, or even a digital piece of land or building.
Beginners version:
- Decentraland (MANA) 28%
- Axie Infinity (AXS) 22%
- The Sandbox (SAND) 18%
- My Neighbor Alice (ALICE) 17%
- Illuvium (ILV) 15%
Advanced version:
- Decentraland (MANA) 23%
- Axie Infinity (AXS) 16%
- Loopring (LRC) 10%
- The Sandbox (SAND) 12%
- My Neighbor Alice (ALICE) 10%
- Smooth Love Potion (SLP) 15%
- Illuvium (ILV) 14%
Networks (Blockchains)
This Smart-Basket is focused on the most important assets today whose projects are blockchain networks and smart contract platforms. These projects make possible transactions carried out through blockchain, accompanied by smart contracts. In addition, they serve as support for the creation of decentralized applications (dApps), so it could be said that they serve as the basis for other types of decentralized projects.
Beginners version
- Solana (SOL) 23%
- Ethereum (ETH) 28%
- Fantom (FTM) 19%
- Dash (DASH) 15%
- ChainLink (LINK) 15%
Advanced version:
- Solana (SOL) 15%
- Cardano (ADA) 12%
- Ethereum (ETH) 21%
- Elrond (EGLD) 10%
- Fantom (FTM) 13%
- Polygon (MATIC) 6%
- Dash (DASH) 6%
- Near (NEAR) 6%
- ChainLink (LINK) 11%
Valuable projects
This Smart-Basket is focused on assets that support the development of projects that add value to society, whether in the professional field or in people’s daily lives. These projects meet a specific problem, and have been weighted according to the stage in which they are and according to the growth potential that has been identified on them.
Beginners version:
- Basic Attention Toke (BAT) 35%
- MIOTA (IOTA) 20 %
- VeChain (VET) 17%
- Ripple (XRP) 28%
Advanced version:
- MIOTA (IOTA) 12%
- VeChain (VET) 13%
- Basic Attention Token (BAT) 20%
- Alien Worlds (TLM) 11%
- Akropolis (AKRO) 9%
- Ripple (XRP) 16%
- Algorand (ALGO) 19%
Diversified for beginners
This Smart-Basket for beginners is made up of one asset from each of the previously mentioned baskets, with the aim of diversifying into different projects with different purposes and objectives.
Beginners version:
- Bitcoin (BTC) 28%
- Ethereum (ETH) 23%
- Basic Attention Token (BAT) 15%
- Decentraland (MANA) 15%
- Ripple (XRP) 19%
Advanced version:
- Bitcoin (BTC) 24%
- Ethereum (ETH) 11%
- Solana (SOL) 11%
- Basic Attention Token (BAT) 9%
- Avalanche (AVAX) 11%
- Decentraland (MANA) 12%
- Terra (LUNA) 9%
- Ripple (XRP) 9%
- Dogecoin (DOGE) 4%
The Smart-Baskets will be able to give you a broader panorama when deciding which assets to invest in, since you will be able to use the pre-established templates or create your own according to the cryptocurrencies that you consider to have the greatest potential. If you want more specific information about each of the cryptocurrencies that are incorporated into the different Baskets, we recommend you visit the Coin Glossary in the Smartrader app.