Creating a well-structured cryptocurrency portfolio is an essential part of managing investments effectively. In 3Commas, users have the flexibility to create, customize, and monitor their portfolios with ease. This guide will take you through each step of creating and managing a portfolio in 3Commas, from selecting assets and setting allocation ratios to analyzing performance. We’ll also cover some best practices and provide tips on how to optimize portfolio allocation.
1. Go to My Portfolios page
To begin, you need to navigate to the portfolio section in 3Commas.
Step 1: Click on the Account Icon at the top-right corner of the screen.
Step 2: From the dropdown menu, select My Portfolios.
2. Starting a New Portfolio
Once you’re on the My Portfolios page, you can start creating a new portfolio.
Click the Create New Portfolio button. This action will open a new page where you can input your portfolio details and begin selecting assets.
3. Naming Your Portfolio and Choosing an Exchange
Naming your portfolio helps keep your investments organized. It’s particularly useful if you’re managing multiple portfolios with different strategies.
Step 1: Enter a Name for your portfolio.
Step 2: Select the Exchange where the portfolio will be implemented. Currently, 3Commas only supports Binance and HTX.
4. Selecting Coins for Your Portfolio
3Commas provides an extensive list of available cryptocurrencies that you can add to your portfolio. You can choose coins based on your research, market trends, or investment goals.
Use the search bar to type in the name of the coin you want to add, or scroll through the Top by Cap section on the right side to add popular coins.
This feature allows users to easily access major assets like Bitcoin (BTC), Ethereum (ETH), and other high-cap coins.
5. Setting Allocation Ratios for Each Asset
One of the key aspects of portfolio management is asset allocation, where you decide how much of each asset to hold in your portfolio. In 3Commas, this process is simplified with the Share field.
After adding your coins, set the allocation ratio by entering a number in the Share field for each asset.
Equal Allocation: By default, each selected coin is given an equal share in the portfolio. For example, if you choose four coins, each coin automatically receive a 25% allocation.
Custom Allocation: You can adjust the shares to suit your strategy. For instance, if you want to allocate 50% to Bitcoin and distribute the remaining 50% among three other coins, enter custom values in the Share field (e.g., 50% BTC, 20% ETH, 15% ADA, 15% DOT).
Note: The Share field doesn’t represent the number of coins but the proportion of the entire portfolio allocated to each asset.
6. Analyzing the Portfolio at the Creation Stage
To help you make informed decisions, 3Commas provides real-time portfolio analysis tools while you’re creating your portfolio.
Allocations: A pie chart visualizes the percentage of each coin in your portfolio. Hovering over the colors will display the coin’s name and its exact percentage.
Profit Metrics:
BTC Profit: Shows the profit or loss percentage in BTC terms over the last 24 hours.
USD Profit: Displays the same metric but in USD terms. This is helpful for tracking the portfolio’s performance in both fiat and cryptocurrency values.
Statistics:
This section includes detailed performance metrics like daily and monthly returns, Sharpe ratio, Sortino ratio, and deviation. These figures give insight into your portfolio’s risk and return profile.
For those interested in portfolio theory, understanding these statistics can be valuable. Concepts like the Sharpe ratio help assess the portfolio’s risk-adjusted return.
7. Completing the Portfolio Creation
Once you’ve added all your desired coins, set the allocations, and reviewed the analysis, it’s time to finalize your portfolio.
Step 1: Click Save + Publish to save your portfolio. This option makes it available in My Portfolios and allows other 3Commas users to view it if you choose to publish it.
Step 2: After saving, you will be redirected to a page with a full overview of your new portfolio, including performance metrics, allocations, and recent profit/loss data.
Note: You can also explore portfolios created by other users, which might provide inspiration or strategies you hadn’t considered.
8. Additional Tips for Portfolio Management
To get the most out of the portfolio feature, here are a few extra tips:
Experiment with Different Allocations: The 3Commas portfolio tool allows you to adjust allocations easily. Experiment with different asset distributions to see how they impact your portfolio’s risk and return profile.
Monitor Market Trends and Adjust Accordingly: Keep an eye on the latest market trends and news. For example, if there’s a new development in a particular sector (like DeFi or gaming tokens), you might consider adjusting your portfolio to include or increase exposure to relevant assets.
Analyze Portfolio Performance Regularly: Revisit your portfolio’s performance periodically. Look at BTC and USD profits, review statistics, and make adjustments as needed to stay aligned with your investment goals.
Frequently Asked Questions (FAQ)
Q1: What is the difference between the Share field and the actual number of coins?
The Share field represents the proportion of your portfolio each asset holds, not the actual number of coins. For example, a Share of "25" in a four-coin portfolio represents 25% of the portfolio’s value.
Q2: Can I create multiple portfolios for different strategies?
Yes, 3Commas allows you to create and save multiple portfolios. This is helpful if you want to experiment with various strategies or have specific goals for each portfolio.
Q3: What does "Save + Publish" do?
This option saves your portfolio to your account and publishes it on 3Commas for other users to view.