Distributing your cryptos is key to achieving your goals, since the crypto market is marked by strong rises and falls in value. lIt all depends on finding the ideal “mix”, that is, defining the right proportion of each crypto when purchasing your Crypto Strategy. Furthermore, it is recommended that over the weeks you adjust the distribution in your Crypto Strategy according to your objectives and how the market evolves in order to make the most out of it.
Imagine that you have a bag of candy with 5 different flavors, this represents your Crypto Strategy and you bought it for 100 USD in the market; Only when you bought it, the seller asked you how many candies you wanted: cherry, mint, chocolate, lemon, and cinnamon.
In this way you assigned how many candies you wanted of each flavor until you covered the 100 USD of its total value. Let's assume that each candy has an initial value of 2 USD per piece, and that you have purchased 50 candy in total in the following distribution:
- 24 cherry (48%);
- 10 mint (20%);
- 10 chocolate (20%);
- 5 lemon (10%);
- 1 cinnamon (2%).
As you can see, each one represents a different percentage (%) in how the candies of your Crypto Strategy are distributed. You can do this action of distributing from your Bitso app when purchasing your Crypto Strategy, entering a total purchase amount in any denomination in which you have funds, and then distributing the total in various percentages for each flavor, that is, your cryptos 😉
What's thrilling is that there's a chance that the same bag could appreciate over time, potentially increasing in value from 100 USD to, say, 500 USD.
The value of each candy can change over time depending on market conditions, given the preferences and behavior of buyers. Therefore, the total value of your Crypto Strategy, as well as its distribution in percentages, may also go up or down.
Following the same distribution of the candies, now imagine that the value of each sweet is the following:
- Cherry: 2 USD;
- Mint: 1 USD;
- Chocolate: 6 USD;
- Lemon: 3 USD;
- Cinnamon 5 USD.
Therefore, if we recalculate the total value of our bag of candies (which contains the same amount that we initially bought), and also calculate the percentage each flavor represents, we get the following:
- 24 cherry: USD 48, or 34.8%;
- 10 mint: 10 USD, or 7.2%;
- 10 chocolate: 60 USD, or 43.5%;
- 5 lemon: 15 USD, or 10.9%;
- 1 cinnamon: 5 USD, or 3.6%.
As you can see, the total value of the bag of candies went from 100 USD to 138 USD (a return of 38%), however, the weight distribution changed completely, because some candies went up in price. price (therefore, they now represent a higher percentage of the total), while others decreased in price (therefore, they now represent a lower percentage of the total) or remained unchanged.
It is important to know that the distribution percentages of your Crypto Strategy will be continually changing as market conditions evolve, driving the prices of each crypto in the combo.
That is why making periodic adjustments to your Crypto Strategy will help you to maintain a good distribution in line with market movements, or to return to the originally allocated distribution percentages regardless of price changes.
You can always make these adjustments from the Crypto section of your app, under the Crypto Strategy tab > Adjust (in the bottom menu of the screen).