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FX, Commodities and more: create the perfect trading portfolio with PrimeXBT

Cryptocurrency

There are several factors that go into an appropriate risk management strategy.

Any self-respecting trader understands the importance of planning and execution, which includes the time of exits or entrances with limited orders and the definition of stop loss or receipt of profit orders at key levels.

But a critical factor is often overlooked: diversification.

Why building a diverse trading portfolio is ideal for performance and risk

According to Investopedia, diversification is a “risk management strategy that combines a wide variety of investments in one portfolio”.

The idea behind this concept is simple: by limiting exposure to a single asset, you also limit the impact of any risk associated with a single investment.

A portfolio composed of many different types of assets reduces risk and, on average, outperforms a single asset over the life of the investment.

The improved overall importance is due to the positive share of individual investments made, canceling any negative performance of others.

The data suggest that the best risk reduction comes from a portfolio composed of 25 to 30 different assets; however, there are some disadvantages to this method.

Trading on so many different assets can cause brokerage fees to pile up, and managing many different assets can be a time-consuming process, especially with many trading platforms that offer a hyper-focused asset line.

However, the benefits outweigh any disadvantages of diversification, making any time or money spent worth the risk reduction and additional portfolio performance

PrimeXBT: The solution to the disadvantages of portfolio diversification

Traders interested in building the perfect portfolio, but are discouraged by the few disadvantages that diversification can cause, need not look beyond PrimeXBT.

PrimeXBT is among the only trading platforms in the financial sector that offer forex, commodities, stock indices and cryptocurrencies, all under one roof, for a grand total of more than 50 different unique assets.

Traders interested in creating unparalleled diversity can do so without the hassle of managing assets across multiple platforms.

Even better, PrimeXBT recently reduced trading fees on all pairs of transactions and introduced a new progressive trading fee discount system, offering discounts of up to 50% for the most active traders.

By offering so much diversity of assets in a single one-stop shop and keeping rates low for traders who manage multiple assets, there is no more profitable platform for new or professional traders.

PrimeXBT: Forex, Commodities, Stock Indices, Crypto and more

The Bitcoin-based margin trading platform offers forex, commodities, stock indices and cryptocurrencies with leverage of up to 1000x.

The platform offers exposure to 36 of the world's most popular foreign currency pairs, including recent additions to the Russian ruble, Turkish lira and Singapore dollar.

In addition to the world's best forex trading pairs, traders can increase their earnings by adding a variety of stock indices to their portfolio, including Dow Jones, NASDAQ, SP500, Europe 50, Japan 225, Australia 200 and many more.

PrimeXBT also provides access to commodities like Brent and crude oil and Natural Gas, in addition to gold and silver precious metals.

Finally, PrimeXBT offers digital assets like Bitcoin, Ethereum, Ripple, EOS and Litecoin to ensure that any customer on the platform does not miss out on one of the hottest and most lucrative new markets.

PrimeXBT: The advanced Bitcoin-based margin trading platform

All assets available on PrimeXBT can be traded using the platform's advanced trading tools.

The platform has built-in graphics software with a clickable price list to obtain more accurate inputs and outputs. Dozens of the most useful trade indicators are included for the ability to generate profit.

Long and short positions are available individually and simultaneously to profit from the fall and rise of the markets, as well as the construction of hedge positions.

Stop loss and take profit orders can be added when orders are placed or they can be added to existing positions to obtain the highest level of control over risk.

Leverage of up to 1000x is offered, depending on the trade pair, allowing traders to multiply any profit by a factor of one thousand.

The progressive multi-level discount system rewards the most active traders on the platform, cutting already low and competitive rates by up to 50%.

The platform also offers customers additional ways to generate revenue beyond trading, with a profitable four-tier referral system, CPA offers and more.

An early access phase will introduce the new PrimeXBT Turbo platform, ahead of the anticipation of a broad launch.

Conclusion: PrimeXBT helps diversification professionals to overcome cons

Considering the benefits that building a well diversified business portfolio

Conclusion: PrimeXBT helps diversification professionals to overcome cons

Considering the benefits that building a well-diversified trading portfolio can provide, there is no denying that it is an essential part of any successful trader's strategy.

The benefits of diversification include:

  • Overall reduction in exposure to losses
  • Exposure to additional profit opportunities
  • Positive performance can outweigh negative performance
  • Prevention of market cycles
  • Reduced exposure to volatility
  • Reduced exposure to external market factors (eg, climate, politics)

All that remains is to find a way to manage a series of assets easily and efficiently and to do so without reducing the rates of profits.

PrimeXBT is the perfect choice for traders looking to diversify due to the low fee structure that rewards traders who take positions more often or in many types of assets.

And with so many assets – digital and traditional – under one roof, a strong and risk-averse portfolio can be built quickly, without stress and with little initial capital, thanks to the leverage of up to 1000x offered at PrimeXBT.

Disclaimer - OBN is an informational website which aims to give the latest blockchain related news to the readers. Articles on OBN should not be considered as investment advice. Trading cryptocurrencies is a high-risk investment, every user is advised to consult an expert before making any decisions.