Understanding Shrimpy: The Best Cryptocurrency Portfolio Management Tool
Are you a cryptocurrency trader looking for a reliable trading bot to boost your profit margins? Or are you looking for a platform that eliminates the risk of following trades of people you don’t know? Either way, you are in the right place!
With all the risks around cryptocurrency, you need a social trading platform that will eliminate those risks and generate excellent profit margins. Imagine having a platform that manages your entire crypto portfolio keeps track of your returns, and monitors real-time coin performance. Sounds far-fetched, right? But this is what Shrimpy promises to do for you.
Shrimpy is the best-automated crypto portfolio management tool that does more than just cryptocurrency tracking. In this guide, we will highlight how Shrimpy can make trading easier for you. Hopefully, the insights will help you make an informed decision for your crypto trading activities.
Shrimpy is popularly known as the best cryptocurrency portfolio management service in the crypto space. Benthos Labs launched Shrimpy on January 28, 2018, in the San Francisco Bay Area. After its launch, Shrimpy quickly gained widespread recognition due to its unique features, unlike other portfolio management strategies. These features include portfolio backtesting, trading, indexing, portfolio rebalancing, and more.
Shrimpy’s rightful founders are Mathew Wesly (CTO) and Michael McCarty (CEO). They claim they got the idea to create Shrimpy in November 2017 while they were developing a cryptocurrency bot called Crabby. The team was unsatisfied with the initial product, and they later rebranded to Shrimpy.
Shrimpy came in at the right time when there were numerous crypto trading bots but insufficient cryptocurrency trackers that could automatically place a trade. The platform’s objective is to simplify your life by automating trades in a way that makes sense for everyone.
The platform offers suitable options for traders to automate their strategies using either the Shrimpy Developer APIs or the Universal Crypto Exchange APIs. Universal Crypto Exchange API provides users with tools to build their trading bots from the ground up. Shrimpy Developer APIs allow any app developer to automatically connect to every major cryptocurrency exchange to execute trading strategies. It also provides a real-time trading network for high-frequency traders and enterprise customers.
The growing numbers of crypto traders looking for a tool that can track and manage their crypto portfolios have remarkably contributed to Shrimpy’s growth. It supports several crypto exchanges including KuCoin, Bittrex, Coinbase Pro, Binance, Kraken, BitMart, Poloniex, Huobi Global, Gemini, HitBTC, Bibox, Bitfinex, OKEX, and Bitstamp. Thanks to this wide range of exchanges, you can easily customize your cryptocurrency index fund.
With Shrimpy, you can maximize your profits without continually analyzing the market to catch every market move or spot any trading activity. If you are looking to join the platform, Shrimpy offers a premium plan that ranges in cost from $13 — $19/mo.
Shrimpy is handy for cryptocurrency traders and investors, mainly because it has a built-in trade algorithm that places trades automatically. Below is Shrimpy’s wide range of revolutionary features that helps people achieve their cryptocurrency investment goals.
Rebalancing is among the core features of Shrimpy’s product. Portfolio rebalancing refers to changing your portfolio to meet your percentage criteria when the market moves. It ensures that you can keep your portfolio in-line with your long term strategy to enhance your chances of profiting from the market movements. This feature is an excellent trading approach that reduces risk and improves profit margins.
Portfolio rebalancing is frequent in the stock market, and Shrimpy brought it into the cryptocurrency space. Shrimpy will automatically execute the trades required to rebalance your portfolio and place them systematically on the exchange of your choice to meet your desired portfolio allocations.
The platform consists of two types of portfolio rebalancing: threshold rebalancing and periodic rebalancing. With periodic rebalancing, Shrimpy rebalances your asset portfolio within a selected period, i.e., every day, every week, or every month to achieve your desired asset percentages.
On the other hand, Shrimpy uses threshold rebalance to rebalance your portfolio every time one of your assets deviates from the desired allocation by a set amount. Unlike time rebalancing, threshold rebalancing incurs less trading fees, and also Shrimpy only rebalances your portfolio when it’s indispensable.
Rebalancing on Shrimpy is quite straightforward. After you’ve already signed up on Shrimpy for a free account, link your exchange account, then create a new portfolio and key in one of your preferred rebalancing parameters.
Every cryptocurrency user knows that dealing in a diversified portfolio has the advantage of decreasing risk and enhancing profit margins. Shrimpy used this idea to build a smart indexing tool that lets you create your very own crypto index with multiple different parameters and automatic rebalancing.
Correctly weighing an index is crucial if you want it to out-perform the market. Shrimpy’s indexing tool helps you automatically weight your index funds by the market capitalization or by equal weights.
- Market Cap Weighing involves weighting a crypto index by market cap. Market cap weighing selects the top 10 cryptocurrencies by market cap to be part of your portfolio. Shrimpy automatically replaces any coin that falls out of the top 10 list with another currency that has increased in market cap to move into the top position. Also, those at the top 10 places get weighted such that each asset with a higher market cap has a higher portfolio and vice versa.
- Equal Weighting — Shrimpy equally weighs in the percentage of each of the coins that you decide to include in your crypto index, i.e., 20% BTC, 20% ETH, and 20% LTC. In case of any changes in your portfolio’s market cap, the platform consequently changes the portfolio to reflect the equal percentages.
If you are developing a custom trading strategy, the backtesting feature helps you find out how it would have performed in the past. You can use this tool to test any trading strategy or index with historical data up to 5 years. You can then tweak to improve it and find your final portfolio allocation. Shrimpy simulates every trade precisely by only utilizing exact bid-ask market data.
It’s evident that Shrimpy has revolutionized cryptocurrency trading with its outstanding features. Traders can now mitigate risk and grow their investment using the automatic rebalancing feature. Besides, backtesting helps users test any index to know how it would have performed in the past.
Shrimpy is a must-have trading bot for both beginners and experienced traders looking to take their crypto trade to the next step. It comes with some essential features for the next wave of cryptocurrency adoption as more investors enter the market.
Originally published at https://www.cryptofolds.com on May 12, 2020.