Crypto derivatives exchange Bitget has launched an intelligent bot, Smart Portfolio, designed to boost profits by enabling users to rebalance their crypto assets in response to price fluctuations. Effective rebalancing is crucial to minimize risk, align with investment strategies, and potentially increase returns. The release of this bot underscored Bitget’s mission to simplify and smarten crypto investing, in line with the sentiments of Gracy Chen, Bitget’s Managing Director.
The Smart Portfolio bot boasts dynamic attributes that aim to enhance portfolio performance. It reportedly adjusts positions within a user-selected crypto portfolio regularly and dynamically, shifting allocations in sync with market values. This system aims to take profits when digital asset prices spike and make additional purchases when prices dip, potentially accumulating overall portfolio value compared to simply holding the assets.
The platform observed that the bot continuously targets brief price gains, moving quickly to lock the price prior to any potential value decrease. After securing the value, the bot reinvests those funds into undervalued coins with potential for price upticks. By steadily augmenting the total quantity of cryptocurrency assets held, this mechanism could offer long-term benefits for users.
Users also have the opportunity to align the bot’s two rebalancing modes – percentage-of-portfolio and calendar rebalancing – with their investment strategies. The percentage-of-portfolio mode comes into play when the percent allocation for digital assets veers off due to changes in market capitalization, to maintain a consistent coin proportion. Calendar rebalancing, on the other hand, makes time-based adjustments at specific intervals.
In alignment with these modes, the intelligent bot is designed to analyze price momentum and market volatility to pinpoint the optimal times for rebalancing. Notably, the bot’s algorithms aim to exploit market conditions to maximize returns from portfolio rebalancing. In a world where manual crypto trading can be complex and time-consuming, such automated solutions could prove to be a boon, although success would undoubtedly depend on how effectively these algorithms can factor in the notorious volatility of cryptocurrency markets.
Source: Cryptonews
