Before we begin, it’s important to fully understand what it means to manage a cryptocurrency portfolio and how this relates to trading bots.

Cryptocurrency Portfolio Management

In the crypto market, there are thousands of different digital assets. Each cryptocurrency has its own unique selling points, use cases, and functionality. When people are looking to get into the market, many will try creating a diverse portfolio to reduce down-side risk of holding a single cryptocurrency.

Most people quickly realize that managing such a diverse range of assets is a significant amount of work. Purchasing each of these assets, holding them on hardware wallets or across exchanges, and moving in and out of positions is cumbersome.

This is where portfolio management solutions come into the discussion. Portfolio management solutions allow you to link your exchange accounts and hardware wallet balances to a single application that can then simplify the way you manage all of your assets.

For example, let’s imagine you own 10 different cryptocurrencies on Binance, 30 on Bittrex, 5 in a hardware wallet, and 3 in a hot wallet on your computer. Each of these can be connected to a portfolio management application for a complete overview of your portfolio.

In addition to monitoring your assets, there are also applications that allow the trading of your assets through the application, without the requirement of logging into each of your exchange accounts individually every time you want to execute trades.

Trading Bots and Automation

Now that we understand the intention of portfolio management, we can begin investigating the strategies that are common for managing and automating portfolios.

In general, people are looking for simple ways to maintain their portfolio. Most people don’t want to spend every waking moment tinkering with a trading tool to get it to work perfectly. The tools we use should be simple, trusted, and focused on the long-term.

In one of our previous articles, we discussed the three core strategies that are used for portfolio management.

These strategies are:

Each of these strategies can be automated with trading bots. However, before we get into the trading bots, let’s examine the portfolio management features available today on Coinbase Pro.

Coinbase Pro Portfolio Management

Coinbase Pro has increasingly become interested in portfolio management. Although the core Coinbase products have periodically experienced high profile failures with portfolio management products and features, we believe there are still massive opportunities for their team to expand the portfolio management features for Coinbase Pro.

Let’s take a deeper look at their history with portfolio management.

The Coinbase team recently launched “Portfolios” for Coinbase Pro. This allows users to generate multiple sub-accounts on Coinbase Pro. These sub-accounts can then all be managed separately for trading, reporting, and API access.