MultiToken Calculator
To visualize the financial advantages of owning a MultiToken to manage your investments over keeping your assets stored in a wallet without rebalancing, head over to our calculator.
Upon arriving there, you may ask yourself how it all works, what youʼre supposed to do, and how to interpret the calculatorʼs results. Not to worry, this guide will sort out any and all questions you may have about the calculator, leaving you with a clear view on how and why MultiToken is a critical tool in your investment toolbox.
What is the MultiToken Calculator?
The MultiToken calculator is a simple backtest tool that allows anyone,
anywhere to create a decentralized fund made up of cryptocurrencies of their choosing. For your convenience, we have listed many of the most popular (and profitable) cryptocurrencies available.
Once you have entered your specifications and chosen the cryptocurrency assets youʼd like to include in your MultiToken, the calculator will analyze the fundʼs returns over the period you have specified.
On the final screen, you can open a chart to see the performance of your rebalancing MultiToken portfolio versus what your returns would be had you just bought and held (HODL strategy).
To summarize, the MultiToken Calculator lets you run a hypothetical portfolio and shows you how much more your portfolio would be worth had you owned a MultiToken portfolio versus merely buying and holding assets in your wallet.
How do I use It?
Using the MultiToken Calculator is a breeze — letʼs open it up and walk through the steps.
- Open the Calculator.
- Select the assets you want to include in your MultiToken Portfolio then click ‘Next.ʼ
3. Select the type of rebalancing strategy you would like your MultiToken Portfolio to use. To find a guide on rebalancing strategies, check our blog.
4. Input the amount of money to begin with, the exchange amount per day (how much capital to spend on arbitrage for rebalancing), the commission percentage charged for exchange fees, the dates for the calculation period, and the proportion of each asset in the portfolio.
Select ‘Calculate.ʼ
5. On the next screen, youʼll see the portfolioʼs results with rebalancing, without rebalancing, and the portfolioʼs value had you only held bitcoin (used as a baseline). On the bottom right, select ‘Show Chartsʼ for a visual representation of the portfolioʼs performance.
Thatʼs it! Now, you can save your portfolioʼs results to compare against
another portfolio, start a new portfolio, or edit your inputs and calculate
again.
What the Calculator Tells Us
Based on countless MultiToken Calculator backtests, rebalancing your portfolio using MultiToken rebalance strategies almost always outperforms merely buying and holding a variety of assets in your wallet.
Diversification is critical in investing, but once diversified, thereʼs much more to do. Thankfully, MultiToken cuts out the manual work involved in watching and rebalancing portfolios, allowing you to focus instead on other things while your MultiToken automatically rebalances using trustful smart contracts.
Welcome to MultiToken — investing on autopilot.
