How do you know when you’ve found the right altcoin?
It’s a question that many beginning cryptocurrency traders ask themselves, and sometimes it’s hard to come up with a good answer.
Experts caution that Davy Jones Locker is already full of graveyard cryptocurrencies that just didn’t make the grade. At the same time, there are so many new potential opportunities that investors often end up chasing them on the wind.
A new option from Lykke, an exchange with market cap over $7 million, intends to help with the issue of getting your finger on the pulse point of the cryptocurrency market – and keeping it there!
The Lykke exchange is rolling out a token called “LyCI” that it says will revolutionize the cryptocurrency market.
“Lykke says that it is often difficult for crypto users to know where digital assets they’ve acquired will be in the future,” explains Connor Blenkinsop at Cointelegraph this morning. “ They could be the next Google, something that’s going to rise astronomically in the years to come. But on the other hand, they could turn out to be the next MySpace — popular until something else comes along. … (LyCI) enables users to access the top-25 cryptocurrencies based on their market capitalization.”
Single-click diversification is a major resource for traders who want to automate balancing their portfolio according to which coins are ‘in’ or ‘out’ at the moment. LyCI will continually rebalance the user’s investments so that the top 25 cryptocurrencies based on market capitalization are always front and center. So for instance, if you have X amount of holdings in “BestCoin” – and “BestCoin” slumps down to penny stock territory, LyCI would rebalance into “NextCoin” or “SkyCoin” or “BigBeautifulBoyCoin.”
“According to the company, this allows people who are interested in getting involved in cryptocurrencies to receive a helping hand in diversifying their portfolio, without the need to have a forensic knowledge about where the market is heading next.,” Blenkinsop writes.
The exchange’s CEO Richard Olsen believes that this new single-click diversification tool can really help investors to break out of their shackles in terms of big losses from booming and busting cryptocurrencies.
Referring to big losses – such as Bitcoin’s slow decline from $20,000 to around $4000 today, Olsen suggests that the new service token will eliminate the investor’s need to hold onto already dwindled digital assets in hopes of future gains.
“With the collapse of cryptos in 2018, investors are sitting on losses,” Olsen says, according to Blenkinsop. “They own BTC, ETH, EOS or AltCoins and have to decide if they should just stick with their holdings or switch to another crypto with a better outlook. Buying another crypto is risky, because their timing may be wrong.”
This is big news for crypto investors. If you already have crypto in hand, or you’re thinking about getting involved, take a look at how you could automate some or all of your crypto holdings to make sure that you’re not left holding the bag when that next big coin takes a plunge.