If you’re a crypto investor managing a diverse portfolio of assets in different wallets and exchanges, it can be challenging to track all your assets or analyze the market to determine the best time to trade a coin.
Cryptocurrency portfolio management tools solve this challenge by presenting an effective way to manage an entire crypto investment portfolio, keep track of returns, and monitor real-time coin performance. Shrimpy is an automated crypto portfolio management tool that goes beyond just cryptocurrency tracking.
With Shrimpy, you can: manage your portfolio, build custom crypto index funds, automate your portfolio rebalancing, track your performance, and even find out other people’s strategy from the platform using the social trading feature.
In this Shrimpy guide, you will get to know in detail everything you can do with Shrimpy from automating portfolio strategies, rebalancing, or backtesting to the developer tools embedded in the platform. By going through this guide, you’ll have a clear understanding of the platform, and you can easily use it in your daily trading to enhance your profit margins.
Shrimpy was launched on Jan 28, 2018, in the San Francisco Bay Area by a company called Benthos Labs. Following its launch, the platform quickly gained widespread recognition attributed to its unique features that were offered in most cases free of charge.
Matthew Wesly and Michael McCarty are the rightful founders of Shrimpy and claim they got the idea to create Shrimpy while developing a cryptocurrency bot called Crabby in November 2017. Crabby was rebranded to Shrimpy after the team was unsatisfied with the initial product. The idea to create Shrimpy was ripe, given that there were numerous crypto trading bots but insufficient cryptocurrency trackers that could automatically place a trade.
Shrimpy’s growth has been remarkably attributed to a growing number of crypto traders looking for functional tools to track and manage their crypto portfolio. Some of Shrimpy’s features are exclusive to the platform and not offered by any of its competitors, therefore, making the tool stand out. Shrimpy supports 16 different crypto exchanges as well as hundreds of different coins; hence users can customize their own cryptocurrency index fund.
With portfolio automated trading, Shrimp provides a means in which traders can maximize their profits without constantly analyzing the market to catch every market move or spot any trading activity.
Shrimpy Core Features
Shrimpy’s core features stand out, considering that it’s the only cryptocurrency tracker that has integrated a built-in trade algorithm with an ability to place trades automatically. The social trading feature is also pioneering a new way to think about collaborative investing and gives modern dimensions to cryptocurrency trading. Below is a detailed look at Shrimpy’s top features.
1. Portfolio Rebalancing
For most traders, portfolio rebalancing may sound like an ordinary term with hardly any significance in their trading strategy. But in the real sense, rebalancing is an excellent trading approach that reduces risk and improves profit margins.
For starters, rebalancing is a trading strategy where you develop a formula for allocating assets based on market conditions. In essence, it’s changing your portfolio to meet your percentage criteria to enhance your chances of profiting from the market movements.
Automatic portfolio rebalancing has been used by institutions in the stock market for decades, but has now been integrated into cryptocurrency trading thanks to Shrimpy. The platform will automatically calculate the trades that need to be executed to rebalance your portfolio, then systematically place them on the exchange of your choice to reach your desired portfolio allocations.
Shrimpy offers two types of portfolio rebalancing: time(periodic) rebalancing and threshold rebalancing. In the periodic rebalancing option, Shrimpy will rebalance your asset portfolio within a selected period, i.e., daily, weekly, or monthly to achieve the desired asset percentages (e.g., 60% BTC, 10% LTC or 30% ETH-whatever the percentages you choose).
In threshold rebalancing, Shrimpy rebalances your portfolio every time one of the assets deviates from the desired allocation by a set amount. Threshold rebalancing is quite effective compared to time rebalancing since you incur less trading fees and also rebalances your portfolio when it’s indispensable.
How to Rebalance on Shrimpy
Rebalancing on Shrimpy is quite straightforward. Assuming you already signed up for a free account at Shrimpy and you’ve linked your exchange account, you’ll simply create a new portfolio and then key in the rebalancing parameters. Choose either periodic rebalancing or threshold rebalancing.
2. Indexing Tool
Dealing in a diversified portfolio has the advantage of decreasing risk and enhancing profit margins. Shrimpy’s intelligent indexing tool makes it easy for traders to diversify their portfolios by allowing them to create their very own crypto index with multiple different parameters and also automatic rebalancing.
Additionally, Shrimpy allows traders to weigh their cryptocurrency index funds using the indexing tool automatically. As we all know, a correctly weighted index is key to successful trading. Shrimpy offers different indexing options outlined below:
- Market Cap Weighing- Market cap weighing is simply weighting a crypto index by market cap. The tool will automatically select the top 10 cryptocurrencies by market cap to be part of your portfolio. And if any of the selected coins fall out of the top 10 list, Shrimpy automatically replaces it with the coin that has increased in market cap to move into the top position. Also, note that Shrimpy weights each asset on the top 10 positions such that each asset with higher market capitalizations has a higher portfolio and vice versa.
- Equal Weighting- This basically means that the coins you decide to include in your portfolio will have equal percentages (e.g., 20% BTC, 20% ETH, and 20% LTC). If there are changes in the market cap of your portfolio, Shrimpy will consequently change the portfolio to reflect the equal percentages.
The backtesting feature comes in handy when you are developing a custom trading strategy, and you would want to find out how it performed in the past. The backtesting tool allows you to test any trading strategy or index with historical data to determine how well the strategy would have performed in the past. With the tool, you can Backtest up to 5 years of detailed historical data, which was directly obtained from each individual exchange. Shrimpy only utilizes exact bid-ask market data; thus, every trade is precisely simulated.
4. Social Trading
Social trading seems to be the new craze in cryptocurrency trading with several platforms, including eToro already having the feature. Shrimpy also has the social trading feature allowing users to ‘copy trade’ other traders’ strategy if they deem fit. To ensure a win-win situation, users who share their trading strategy are paid $4/month for each person that copies their trading strategies. This revolutionary feature is particularly ideal for new traders since they have the option to automate their trading without really having to learn all the aspects of trading. Also, traders with an effective trading strategy are sure to earn passive income by sharing out their strategy.
5. Shrimpy Developers-Universal Crypto Exchange API
Shrimpy is integrated with the industry-leading API for crypto trading, real-time data collection, and exchange account management. In crypto trading, Shrimpy offers low latency execution endpoints allowing traders to execute endpoints for crypto trading.
Shrimpy APIs provide an effective trading solution for teams developing crypto trading products, algorithmic trading bot, or high-frequency trading strategies. This is the foundation for teams to develop effective crypto trading products that are competitive with algorithmic trading bots.
Shrimpy’s Universal Crypto Trading API also allows users to access live market data as well as a complete order book to make timely trading decisions. Users can obtain or collect real-time market data across every exchange with a single API endpoint.
It’s for the fact that Shrimpy has revolutionized cryptocurrency trading by automating crypto rebalancing, allowing users to create a custom crypto index and not forgetting the other innovative feature-social trading that is mutually beneficial to all users. Most importantly, the automatic rebalancing feature indeed makes crypto trading profitable by enabling traders to mitigate risk and grow their investment.
Above all, the platform is secure as it leverages API to automate your trades. This is to mean that you don’t provide Shrimpy your account login details or anything of the sort; thus, your funds remain safe. If you are looking to take your crypto trade to the next step, Shrimpy is a must-have trading bot.