Coinbase Trading Bot and Portfolio Management
This article will provide a comprehensive overview of portfolio management for Coinbase along with a discussion on the trading bot that pairs with this exchange to provide a simplified way of automating your portfolio.
Additional discussion on crypto portfolio management and automation can be found in another one of our recent articles here. Don’t forget to also join our Telegram to keep up with all the latest crypto news, exchange reviews, and technical market analysis.
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.
That’s not the only thing Coinbase has released in the past to target portfolio management. In 2018, Coinbase had one of the largest flops when they released their index fund. By the end of 2018, Coinbase already announced the closure of the project.
Only months later, Coinbase announced the launch of Coinbase Bundles. With the market hype around the benefits of bundles reaching an all-time high, it was an obvious move for Coinbase to try to play off the momentum. Unfortunately, only a few months later, that project also closed.
These are only a few of the recent examples of Coinbase working to capture the portfolio management market. Each failure inching them closer to understanding the desires of crypto traders and the way they want to manage their funds.
Where is Coinbase Pro now?
Coinbase Pro still doesn’t have the most convenient features for building and managing diverse portfolios. It requires a significant amount of time and energy to implement a strategy that is reliable long-term.
We expect this will change in the future, but until that time comes, we will need to rely on third party automation tools to simplify our portfolio management.
Shrimpy Portfolio Automation
Shrimpy is a portfolio management application that simplifies the way you allocate funds, automate strategies, and manage your portfolio.
The core application allows for better control of your portfolio by actively managing your long term strategy. Users can carefully construct a portfolio that work for them, allocate the portfolio across countless exchanges in seconds, and automate a strategy over time.
In previous sections we discussed strategies like portfolio rebalancing, dollar-cost averaging, and smart order routing. Each of these strategies are supported by default in Shrimpy. That frees users up to spend their time researching new assets or living their life.
Experiment with the Shrimpy demo to see everything the application has to offer.
Additional Reading
Coinbase Latest News, Information, and Reviews
Coinbase vs Kraken - Which Exchange Is The Best For Buying Bitcoin?
How to Create a Personal Coinbase Index Fund
Shrimpy is an account aggregating platform for cryptocurrency. It is designed for both professional and novice traders to come and learn about the growing crypto industry. Trade with ease, track your performance, and analyze the market. Shrimpy is the trusted platform for trading over $13B in digital assets.
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