Shrimpy.io is great for crypto noobs. If you’re anything like me, you love crypto but loathe the tedious task of trading. When I started a little under a year ago, I wanted to buy a few assets to hold and forget about them for ten years.
Easier said than done though. Crypto is too exciting to “set and forget”. I want to be involved – even immersed – on a daily basis, but I don’t want to trade. Why? Most exchanges are still annoyingly complicated, the risk for human error is too high, and trading should be left to the pros. Just yesterday, someone told me how missing a zero on an EtherDelta trade meant he paid 20x more than the highest ask price. No thanks.
So I bought a few assets, then spent most of the past year oscillating between FOMO and JOMO.
Enter Shrimpy.io. All I have to do now is select the percentage of each coin I want to hold and Shrimpy automatically buys and sells those currencies to maintain my desired percentage balances. I now have a diversified portfolio that automatically rebalances itself every hour. Bear in mind there are tax implications. Every trade, including crypto to crypto, triggers a taxable event. Assess your goals and adjust your strategy accordingly.
How it works:
Create a Shrimpy.io account
Add your API keys from Binance or Bittrex (I think you can only choose one at the moment)
Select your desired cryptoassets
Allocate a percentage holding to each
Click rebalance (and/or set an automatic rebalancing frequency)
Boom. Shrimpy triggers the trades.
How I’m using it:
I’m treating my Shrimpy account like a DIY index fund to hold 10-15 of the top coins by market cap. It’s perfect for my situation because even though I have an appetite for risk, I know I need diversification. As I continue to add fiat to my position, I can buy into a few of the smaller cap coins with larger growth potential if I want to increase my risk, as well as exit early and easily if things change.
Why it’s great for me (remember I’m a noob, so don’t take any of this as financial advice):
It’s sort of like my very own bot. I just decide what I want. Shrimpy does the boring (and risky) bits.
It’s a super easy way to get in and out of positions.
It removes a lot of psychological barriers to executing trades – I would previously get distracted by the order book, worry about entering the wrong price, get bogged down in charts etc and basically spend hours researching whether or not to take a tiny position. Analysis Paralysis is real.
Now I don’t see any of that – out of sight out of mind – I just decide what I want (after due diligence!) and it’s done.
Finally, the number #1 reason I signed up…rebalancing outperforms mere hodling.
Shrimpy back-tested results of a straight HODL against a Shrimpy portfolio for one year. “With an initial investment allocated evenly between BTC, ETH, XRP, DASH, and LTC, Shrimpy performed over 50% better than holding after one year.” They do not guarantee results, but claim this back-test demonstrates the benefits of rebalancing, and I agree. I may do a deep dive into rebalancing in future. This is where you should definitely assess your own financial situation and goals, because the 50% performance increase may mean sacrificing on Capital Gains Tax concessions. I will be thinking carefully about this myself.
This was not sponsored in any way. I just think it’s a great product. For some reason their team page doesn’t have a link in their navigation menu – which initially raised a red flag for me – a team’s bio is usually my first port of call for due diligence.
However, they provided the link via a blog post here https://www.shrimpy.io/team and published a follow up here https://medium.com/@ShrimpyApp/shrimpy-team-introduction-c2cd33f81e34 which includes links to their LinkedIn profiles.
They have a great Telegram https://t.me/ShrimpyGroup community, they’re super responsive to questions and troubleshooting, and it seems like other users are as excited as I am.
Shrimpy for the win.
Remember: