Zeon Trading Platform grants you access to a synthetic trading tool to test your strategies against historical data and create your own custom portfolio of coins for minimizing risk through diversification. Our synthetic trading tools allow you to optimize commonly used ratios to balance risk and reward without the customary hassle.
Index investing is just one of the synthetic trading items at your disposal. Instead of investing directly in a single cryptocurrency, you can invest in a linked portfolio of coins. This helps you to manage your risk by spreading the investment over a broader portfolio while simultaneously increasing your profit should the market register a general increase.
There are several main advantages to using cryptocurrency index investing over a traditional, actively managed portfolio. Fees are kept to a minimum, as is turnover. This keeps pricey exchange fees from chipping away at your profits.
Since you have complete control over the index you create, you can expect it to outperform a similarly built portfolio. You can build your index for stability or rapid growth, depending on the coins you choose to include.
This is the cornerstone of portfolio management, a process that’s never been easier than with Zeon Trading Platform’s unique toolset.
Rather than be guided by the whims of a traditional index made up of curated cryptocurrencies, you can allocate and distribute the coins to maximize the benefits of your trading style.
If you prefer active trading, you can form your index from more volatile and high-risk, high-reward assets. If passive trading is closer to your style, you can build your portfolio to favor stable, low-volatility coins. There’s a middle road, as well. Some portfolio managers advocate a distributed style. This means choosing coins that have little to no relation or correlation to each other. Should one coin’s fundamentals favor a price increase, it will produce a corresponding price decrease in its complimentary coin. These price movements even out to a stable portfolio that tracks the market in general instead of individual coin spikes and troughs – a great tool for long-term value storage or savings.
Choice is the key factor here, and that’s something we pride ourselves on at Zeon Trading Platform. The way you manage your portfolio and allocate your funds is entirely up to you. This allows you to create the risk profile that you’re most comfortable with while maximizing your potential for profit.
You can also choose to allocate your funds according to the technological direction you expect the market to take. This is a sharp departure from traditional cryptocurrency funds, which tend to look at price alone. That’s the power of choice. If you feel that cryptocurrency is truly moving in a decentralized direction, you might consider stocking your portfolio with privacy coins, holographic interface coins, or coins that specialize in distributed storage. If you believe the blockchain is a tool to improve existing, centralized processes, then you might consider adding banking-centric coins to your portfolio or tokens with narrowly defined use cases.
The choices really are endless. Furthermore, you’re in complete control. Our synthetic trading instruments allow you to craft a custom trading environment. It’s the closest thing possible to having your own exchange.
Zeon Trading Platform’s unique synthetic trading tools give you the ability to create your own specialized index portfolio, tailored exactly to your advanced trading style and preferences.
Creating and using a synthetic trading instrument are simple with Zeon Trading Platform. Us the “Add New Order” button and choose your desired coins or tokens from the chart. After you’ve added your coins or tokens, you’ll be able to clearly see the synthetic trading tool at work, giving you cross rates, correlations, an index or portfolio profile, pair trading data, and much more.
The chart coefficients can be changed to adjust the charts and ratios displayed to recalculate order quantities with a single click. You can also use a negative value for the ratio, effectively creating a spread between two or more cryptocurrencies.
When you’ve set up your synthetic instrument to your satisfaction, simply hit “Save,” and it’ll be ready for use next time.