MultiToken HODLing

We know, we know. HODL. All throughout the epic 2017 cryptocurrency bull market, it seemed that every other post on Reddit, Bitcointalk, Twitter and Telegram was some variation of the same HODL mantra. Is it bad advice? Not necessarily — and like everything else in life, whether it will work for you depends entirely on circumstances. But, taking the idea to the extremes seen over the last year has led many hodlers, most of them new to investing, to see shattering declines in their cryptocurrency portfolio values.

What are the alternatives to HODL? Do any even exist? Had you taken all of your trading advice from the army of crypto trading experts that cropped up during the bull market, you might think that the only strategy out there involves buying a coin and simply holding it — rain or shine.

Whatʼs the bigger reason for HODLʼs popularity? There is glaringly an obvious one: itʼs easy. New investors want access to cryptocurrency markets but donʼt have the skills, time, or will to compete with a shark-like day traders hunting newbies during lunch breaks from their usual trading desks.

For them, the best option is to simply buy and hold an asset regardless of price fluctuations. Does this strategy work? Sometimes — but, ask people who bought TRX in early 2018 and are still holding today, and you might hit on a touchy subject.

At MultiToken, we developed a strategy for making your investments grow faster and drop slower than the rest of the market, all without any input or action from you, the investor. We like to call it investing on autopilot, and in most situations, it not only beats HODLing, but smashes it.

Investing on Autopilot With an Auto- Rebalancing Portfolio

We wonʼt be offended if youʼve never heard of rebalancing before. In fact, after a few in-depth searches across popular social media and discussion boards, we hardly stumbled across anyone touting rebalancing at all. However, rebalancing is a very well known investment strategy in asset markets outside of cryptocurrency.

Rebalancing works like this:

• You buy two or more assets and manage them in a portfolio
• You determine a specific proportion of each asset should have in your portfolio. If you buy two assets, you may decide to keep them at a 50/50 balance in the portfolio.
• Asset values fluctuate constantly. When one of your assets goes higher or lower, the balance in your portfolio changes. Rebalancing your portfolio means buying some of the cheaper asset or selling some of the more expensive asset to restore balance to your portfolio.
• Doing so increases the overall value of the portfolio or, in a bear market, keeps the portfolio from dropping at the speed of the rest of the market.

Now that you know a bit about rebalancing, itʼs important to note the difference between rebalancing and MultiTokenʼs auto-rebalancing portfolio. Typically, traders only rebalance their portfolios at the end of a specified timeframe — perhaps quarterly, monthly, or weekly. Doing so also takes a degree of hands-on knowledge and involvement with investments.

MultiTokenʼs auto-rebalancing portfolio, on the other hand, automatically balances your portfolio in real time, so your portfolio is continuously responding to active market fluctuations, giving it a constant edge. You, the investor, do nothing — your MultiTokenʼs smart contracts handle the work, and you monitor the profits.

Welcome to cryptocurrency investing on autopilot.

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