Success stories of investors becoming millionaires overnight continue to circulate the internet, forcing those who haven’t thrown a few dollars into the cryptocurrency pot into deep feelings of regret. However, before any investor gets too down on themselves, consider this, selecting the right digital currency - the one that will make you rich - is a lot harder than it appears. First, there are thousands of cryptocurrencies around, and secondly, to get rich quickly, traders need to time the market just right. Rather than leave it up to chance, smart investors will create a diversified portfolio to increase their chances of succeeding in the market.
Adding cryptocurrencies to your investment portfolio requires users to make two very important decisions: which assets they should hold and how much of the portfolio each should take up. The answer should give the investor the maximum potential for returns while limiting the downside risk as much as possible. Unfortunately, this is a complex endeavor sometimes, especially since traders often feel they must rely on their own skills and experience, which may be limited.
Stoic is providing users with a smarter way to invest in crypto by using artificial intelligence (AI) as a part of their long-only portfolio, which takes advantage of the opportunities in the altcoin market.
Although the Stoic platform doesn’t believe in chance, users can still get lucky as overnight millionaires in their upcoming contest. In a recent announcement, Stoic shares that one winner may be awarded as much as $1 million by referring their friends, as determined by a random draw of participants.
The contest is set to run for two months, from Oct.1 until Nov. 30. At this time, rewards will be based on the number of participants, as the greater the number, the higher the potential earnings that will be added to a user’s Stoic account.
The Stoic strategy has already proven profitable over the first 12 months since the launch, with numbers that have vastly outperformed Bitcoin (BTC) and other major benchmarks. Despite these numbers, the team shares that their strategy is far from magic and instead leverages a strategy that incorporates rebalancing, performance reviews and a differentiated approach to risk management.
When it comes to investing, one time-tested approach leveraged in traditional stock markets is replicating the entire market with a diversified portfolio, known as a capital-weighted portfolio. Alternatively, portfolios that follow momentum trends, which suggests that if a price is on the rise, it will continue to rise, is known as momentum trading.
The Stoic algorithm combines these two approaches - capital-weighted and momentum trading into what is known as smart beta.
In practice, users will notice a Stoic portfolio contains many different assets, each with a share of under 1%, although this may be up to 2-3%. By giving exposure to the broader altcoins markets, any risks of a cryptocurrency crashing balance out with the potential for collecting a moonshot (or two).
Encouraging new user participation
As the platform reaches its first anniversary, they recognize the over 10,000 Binance (BNB) users that have connected Stoic to their accounts, which now hold over $100 million in crypto assets.
As of Nov. 8, Stoic's strategy generated a return of 2,439% since its inception in March 2020, the team shares.
With fun and profitable opportunities to invest in an emerging market, Stoic team members quickly remind users of the benefits of going through this journey with friends. After all, it can be great to have someone to chat through new projects with, ride the bull market together or comfort each other when the market looks bleak (although with the market volatility, these temporary dips can only be expected).
Therefore, when investors refer their friends, families or networks, they become eligible for a discount on Stoic fees, in addition to a contest entry.
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