Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.

At the start of the week, Bitcoin showed signs of decoupling from US equities. However, US president Trump's positive remarks about the US-China trade war (which had included a 145% tariff on Chinese goods) triggered a relief rally across markets. As a result, BTC has resumed moving up with US equities. 

This rally has led to a rise in short-tenor implied volatility and a recovery in BTC’s put-call skew, indicating that traders are seeking upside exposure.

Please check out the report’s highlights.

Perp open interest rises across the board

Perpetual open interest increased significantly this week across various tokens, especially ETH. Perpetual trading volumes also rose. Notably, Ap 7, 2025 recorded the highest trade volume of the month, following Trump's comment, "Forget markets for a second, we have all the advantages."

BTC option open interest shows a mixed picture; put-call skew in short tenor sends positive signals

President Trump’s recent willingness to negotiate a trade deal with China’s President Xi triggered a relief rally across asset classes, including crypto. Bitcoin had already risen 7% since Apr 21, 2025, prior to Trump's comments. Despite this rally, open interest in puts has outpaced calls, with options volume remaining relatively balanced. 

It's unclear if the demand for puts reflects a hedge against downside risks, or a bet against the upward movement. Meanwhile, perpetual funding rates are providing limited insight into sentiment. However, the recovery of the put-call skew at short tenors indicates that traders are seeking upside exposure to the rally — and are willing to pay for it.

ETH unexpectedly outperforms BTC in this relief rally

ETH's response to the recent crypto market recovery has diverged from previous trends: it outperformed BTC in spot prices, a rarity in past rallies, and open interest in calls exceeds that in puts — opposite to BTC's trend. In addition, ETH call open interest is nearly double that of puts, with calls dominating options volumes. This suggests traders anticipate ETH will reduce its significant underperformance against both BTC and other “ETH killers” like SUI and SOL. Additionally, the spot rally has led to another term structure inversion for ETH.

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Bybit X Block Scholes crypto derivatives analytics report (Apr 24, 2025): Put-call skew recovers at short tenors, showing reviving sentiment

Explore all the hottest Bybit events happening during the week of TOKEN2049 Dubai in this article.

It’s that time of year again — TOKEN2049 Dubai is back, and the city is buzzing with excitement. As one of the most anticipated events on the crypto calendar, it’s not just about the main conference; it’s about everything happening around it, too. From side events and workshops to exclusive mixers and demo days, Bybit is showing up in full force this year. Here's your inside look at what to expect during this action-packed week.

The heart of TOKEN2049 Week, TOKEN2049 Dubai promises two full days of future-facing discussions and innovation in the world of crypto. At the center of it all is Bybit’s immersive booth experience, built on the theme 

. It’s not just a theme — it’s a vibe. Picture claw machines, 

If you’re heading to TOKEN2049 Dubai, be sure to drop by the Bybit booth (located at P33) and chat with our extraordinary Bybit team! And don’t miss your chance to grab a gacha token by scanning our QR code with Bybit Pay. You could walk away with exclusive Bybit merch! 

DMCC x VARA: Crypto regulations and business growth

Policy meets progress at this exclusive evening event co-hosted by DMCC and VARA. This gathering brings together regulators and industry leaders for an open discussion on the future of digital asset compliance and business growth in the region.

You can expect sharp insights, candid perspectives and forward-thinking dialogue about what it really takes to scale a crypto business in a regulated environment. If you care about the future of web3 in the UAE, this is one event to mark on your calendar.

Bybit After Hours: Exclusive Insights & Networking 

 is a private cocktail evening for top-tier traders and long-time supporters of Bybit. This event is equal parts networking, knowledge sharing and celebration.

 to strategic conversations with the Bybit team, this night is tailored to those who trade big and think bigger. With an invite-only guest list, it’s set to be one of the most exclusive experiences of the week.

The Crypto Hub x Bybit Crypto Ark Demo Day

 is all about bringing hands-on energy to the web3 scene. Hosted at the Crypto Ark inside Bybit’s office, this event welcomes founders, devs and crypto creatives for a casual evening of product showcases, idea exchange and light networking.

While Bybit provides the space, the real spotlight is on the community — those shaping the next wave of innovation in web3.

 from across the CIS region are gathering for a deep dive into the tools, tips and strategies that drive growth at Bybit. This meetup goes beyond surface-level sharing — expect actionable workshops covering our Bybit Affiliate program and affiliate best practices.

It’s also a chance to hear directly from Bybit product leads and regional managers, share success stories and walk away with fresh ideas to maximize conversions. 

Wunderbit x Bybit: “Hey, Trading Bot, where is my profit?”

 are here to stay — and this event is going deep into what makes them tick. Co-hosted by Wunderbit and Bybit, the evening workshop blends honest stories from real traders with expert insights on how to avoid common automation pitfalls.

From bot setups that work to the ones that quietly drain your profits, this is your chance to ask the tough questions, hear unfiltered answers — and maybe rethink how you’re running your own bot strategy.

 (RWAs) are taking center stage at the RWA Gulf Summit, a high-powered event co-hosted by Qatar National Bank, Commercial Bank International and DMZ Finance. This summit brings together bank leaders, wealth funds, participants in DIFC, institutional investors and industry pioneers to explore the evolution of tokenized finance in the Middle East and beyond.

Bybit’s Head of Financial Products Jerry Li will take the stage to discuss how 

 (CEXs) can harness RWAs for enhanced yield and 

Dubai's Pinnacle Mixer: Mantle, Mirana, Bybit and Ethena

High above the city, this mixer brings together some of the biggest names in web3 — Mantle, Mirana, Bybit and Ethena. Expect an unforgettable evening of casual chats, cross-chain connections and cocktails with the minds behind some of today’s most innovative projects.

This private event is all about experiencing Bybit Pay in action. See interactive demos, grab a sneak peek at upcoming partnerships and network over bites and drinks. It’s a rare behind-the-scenes look at the way Bybit is shaping the future of crypto payments. 

Wrapping up the week is the Bybit Institutional Symposium — a full-day event dedicated to aligning strategies with institutional clients and forging new collaborations. From macro views to product deep-dives, this conference is built to spark big conversations among serious players.

The day concludes with a gala dinner, a fitting finale to a week in which ideas, connections and innovation have taken center stage.

Intermediate

Bybit Learn Highlights What to Expect at Bybit

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Highlights: What to expect at Bybit (Apr 28–May 2, 2025)

Balance (EPT) is revolutionizing web3 gaming with evolving AI companions, blending blockchain, strategy, and intelligent gameplay in one powerful platform.

Artificial intelligence (AI) agents are a key growth area within the blockchain industry. Projects like Artificial Superintelligence Alliance (FET), 

 (AI16Z) and countless others have been essential components driving the overall crypto market. As of April 2025, the CoinGecko portal lists more than 500 cryptocurrencies within its category of AI Agents. These intelligent assistants are now helping individuals and businesses analyze markets, create textual and visual content, automate work processes and trade profitably.

There's a further area where AI agents on the blockchain are flourishing: the world of 

 gaming. In this sphere, bots and agents based on AI algorithms are helping users develop the best in-game strategies, succeed in the competitive world of play-to-earn (P2E) and overcome key challenges in complex gameplay.

Balance (EPT) is a blockchain gaming project that takes the use of 

 to a completely new level. The creation of the team at the world’s largest social gaming platform, E-Pal, Balance offers players AI agents that can aid them in the in-game environment and serve as their personal companions. Based on a multi-layer architecture, the platform offers some of the most cutting-edge use cases for gaming-oriented AI agents.

 (EPT) is a web3 gaming platform that allows players to easily create, own and use AI companions within the blockchain games it supports.

 Balance supports a variety of first-party (internally developed) and third-party web3 games. You can deploy your AI gaming companions and they’ll act as your assistants, friends or co-players within Balance games.

Using Balance.fun, the platform’s primary web interface, you can create your AI agents and specify various details, such as appearance, personality and functions.

Balance isn’t just another obscure crypto gaming platform. The origins of the project date back to 2020, when the E-Pal social gaming provider was launched by four young California-based technology entrepreneurs — Brian Xiong, Tung Pham, Yuzhe Norris Wang and Yuanzhe Li. E-Pal quickly became a leading force in the newly emerging social gaming field, helping players worldwide find gaming companions. By early 2024, E-Pal had become the world’s largest gaming companion platform, boasting 4.2 million users and 450,000 Epals (gaming companions).

In February 2024, the E-Pal team focused its efforts on 

 and AI technologies, starting the development work on the Balance gaming platform. In September of the same year, Balance went live.

Per the project’s documentation, the platform operates on its own chain, Balance Chain, with 

 (AA) technology used for cross-chain communication. The fungible and 

 (NFTs) held by user accounts are based on the 

A key part of the Balance ecosystem is Key Nodes — purchasable 

 that help with the processing, storage and distribution of data required in the resource-intensive environment of web3 gaming. Some applied instances are the management of real-time leaderboards and the automatic distribution of loot and in-game currency. These nodes can also support the computational requirements of training AI models. As a reward for their work in supporting the platform’s operations, Key Nodes receive a wide range of rewards and benefits, including distributions of EPT tokens, the platform’s native cryptocurrency.

As the ecosystem develops, Key Nodes are envisioned to be involved in governance, 

 launch in September 2024, Balance introduced its Points System, designed to reward early contributors to the platform. During the campaign run in September, users could earn points by completing various specified tasks in various activities, such as joining the project’s social media pages or commenting and reposting.

The 400 users with the best performance in the Points System earned a whitelist spot to receive Pioneer Badge NFTs — distinct tokens that provide owners with early access to games, future campaigns, airdrops and beta testing opportunities. Pioneer Badge NFT holders can also enjoy other benefits, such as premium NFTs and voting rights on the Balance platform.

Balance’s platform provides a set of tools to create and use intelligent companions for Balance-based games. You can design your AI companions by specifying their key traits and behaviors through custom prompts and strategies. The AI agents on Balance can assist you in battles, gaming contests, learning, routine task execution and interactive entertainment.

Balance’s platform is made up of five key layers, each one serving a specific purpose in supporting its user and developer communities. At the top of the architectural stack is the application layer, which acts as the main interface for users to interact with human and AI companions and the wider Balance community.

The application layer also contains the AI Battle Reporting System, which is designed to give users feedback and analysis tools on their performance in the platform’s gaming ecosystem. AI technology is leveraged here to provide personalized analytics and performance improvement recommendations.

A range of NFTs are also part of the layer. These include in-game asset NFTs, as well as 

 (SBTs) that serve as summaries of the holder’s achievements.

The platform layer hosts the various games within the Balance gaming universe. These include both internal games and third-party games that have partnered with Balance. The key concept uniting all of the games is the active integration of AI companions and AI players, making the platform a unique environment in which humans and AI agents play, interact and compete.

The platform layer also features an AI-driven NFT launchpad that offers a rich tool set for creating personalized NFTs for games and applications. These NFTs can be traded on Balance's NFT marketplace, which is also an integral part of the platform layer.

The protocol layer includes a trio of critical protocols — the Fans Protocol, Epal Fan Token (FT) Exchange Protocol and Asset Protocol. The Fans Protocol lets players launch and manage their Fan Tokens, creating opportunities for influencers and community builders to tokenize their efforts and launch high-potential crypto assets. Meanwhile, the Epal FT Exchange Protocol facilitates the management of (and trade in) Fan Tokens.

The third protocol, Asset, is used for the comprehensive management of a wide range of digital assets on Balance, providing easy-to-use tools for asset creation and trading.

The token layer is designed for core operations involving the platform’s native EPT token. This layer supports the use of EPT for in-game purchases, access to services and AI companions, Fan Token minting and trading, in addition to other functionalities.

This is the underlying infrastructural layer that powers the platform’s operational mechanism. It can be described as Balance's operating system, and is made up of several critical components: the node system, the Balance 

, the Balance Chain network and the platform's unique ID system.

The node system provides the computational and storage resources to power games and other functionality on Balance. In addition, the system acts as a key connecting medium between Balance Chain and the AA functionality that lets the platform enjoy cross-chain capabilities.

The Balance stablecoin, also part of the infra layer, is designed to reduce volatility and bring rate stability to the platform's gaming ecosystem. The Balance stablecoin system helps players engage in asset trading without the fear of wild market fluctuations, an important consideration in the 

Designed to support multiple chains, Balance Chain operates based on dynamic protocol adaptation, automatically selecting the optimal blockchain platform according to user preferences and needs. This dynamic adaptability is designed to reduce costs, improve operational speed and enhance overall security for users.

The final major component of the Balance infrastructure layer, the Balance ID system, is a unified and secure user authentication and identity management solution. To be introduced later in 2025, the ID system will let users access all services and games within the Balance ecosystem via a single set of cross-platform decentralized credentials. In addition to human players, also AI companions will have their unique IDs.

EPT is the native cryptocurrency of Balance. Although the platform has been operational since 2024, the EPT token was just launched on Apr 21, 2025, with a total and maximum supply of 10 billion. It was issued on two major blockchains — Ethereum and BNB Chain. EPT has a wide range of functional use cases on the platform, including the following:

The EPT token's supply allocation is per the chart below.

 as a swap pair with USDT, and through the exchange's 

 based on USDT. You can also take advantage of Bybit’s campaign dedicated to the token to grab a share of the 

Under the terms of the event, new users can earn EPT rewards by accumulating a deposit volume of at least 3,000 EPT, or by depositing at least 100 USDT and trading 100 USDT worth of EPT via their first spot trade with Bybit. Meanwhile, existing users can qualify for rewards by trading at least 500 USDT worth of EPT on Spot. The event is valid through May 5, 2025, 9AM UTC.

As of Apr 25, 2025, the EPT token has been on the market for only four days, and is trading at $0.0117, which is 26.4% lower than its ATH of $0.01708 on Apr 21, 2025, and 11.4% higher than its ATL of $0.01129 on Apr 22, 2025.

Long-term price forecasts for EPT are mostly bullish. DigitalCoinPrice 

 of $0.0412 in 2027 and $0.0615 in 2030, whilePricePrediction 

These and other emerging long-term forecasts for the token don't constitute investment advice. Given EPT's extremely short history on the market so far, 

 on the token's future prospects, carefully assess market fluctuations within the crypto gaming niche and consider all other relevant factors before investing in it or any other cryptocurrency.

Capturing emerging market trends and sensing the broader market conditions, the team at E-Pal recognized the tremendous potential of gaming companions back in 2020. Four years later, E-Pal realized that the new market dynamics in gaming called for something even more innovative — the use of AI companions, in addition to fellow humans. The resulting product, the Balance platform, is now racing to stake the claim to the best web3 gaming environment supported by AI agents.

The platform's unique features — cross-chain functionality supported by an AA mechanism, a dynamic exchange system that selects the best network for users' transactions and, most importantly, intelligent AI companions — can certainly help establish Balance as a leader in this niche of web3 gaming.

AI agents are taking the gaming industry by storm, with blockchain technology acting as a powerful enabler of these intelligent friends of ours. The Balance gaming universe — supported by the proven track record of E-Pal — has a great chance of becoming the go-to environment in which to befriend your next artificial gaming partner.

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Balance (EPT): Revolutionizing web3 gaming with evolving AI companions

Mantle has launched the Mantle Index Four (MI4), an institutional-grade fund providing diversified exposure to yield-bearing digital assets. 

The S&P 500 rose 2.03% on strong Alphabet earnings and optimism over a possible Fed rate cut. Gold jumped 1.5% to $3,338 as trade tensions rose and a weaker dollar, along with falling yields, boosted demand. Fed rate cut signals also supported the rally. The Coindesk Indices, which tracks the broader crypto market, rose 0.74%, with Bitcoin up 0.06% and Ether down 1.89%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is INIT, up 15.4%, following the launch of Initia, which aims to revive the appchain concept with an interconnected network and an INIT token airdrop.

Initia (INIT), founded in 2022, is a modular blockchain platform that combines a Layer 1 network with customizable Layer 2 rollups, enabling scalable decentralized app development. It offers flexibility in virtual machines, gas tokens, and transaction systems, while ensuring interoperability and addressing issues like liquidity fragmentation and network congestion. Initia has 

 to revive the appchain concept by offering a network that integrates appchains in a cohesive, interconnected way. The platform emphasizes full-stack control for apps, avoiding fragmentation. Initia is also launching an airdrop with claims available until May 24, 2025. The native token, INIT, has a fixed supply of 1 billion, distributed across eight categories.

Check out the latest prices, charts, and data of 

, an institutional-grade fund providing diversified exposure to yield-bearing digital assets. In partnership with Securitize, which has tokenized over $3B in assets, the fund aims to fill a market gap by offering native yield generation in a traditional fund format. Mantle Treasury has committed up to $400M as the anchor investment. The fund will rebalance quarterly and incorporate DeFi-native staking strategies, such as mETH and bbSOL, while ensuring investor protections. MI4 targets both crypto-native and traditional investors, with Phase 1 rollout scheduled for Q2 2025.

Yesterday, BTC spot ETFs saw a total inflow of $114.7 million, all from non-GBTC funds, while GBTC recorded no flow.

Dolomite, the 10th largest DeFi lending app, is launching a 200M token 

 (20% of total supply) during its TGE on April 24, rewarding users based on platform usage. The DOLO token powers a three-token system alongside oDOLO and veDOLO, enabling incentives, governance, and potential revenue sharing. With over $800M in TVL, Dolomite expands to Berachain, integrating with its Proof of Liquidity system to offer advanced lending features and asset utility.

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Mantle launches MI4 fund for institutional-grade digital asset exposure and yield generation

Crypto Investment Guide

Investing

Trading

Crypto investment can be risky. Diversification is key to a successful crypto portfolio. Here's how you can manage them responsibly and grow your portfolio sustainably.

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Many new crypto traders focus on buying just one coin. However, their crypto performance is relegated to the sentiment, development, and community behind that one project.

Building a balanced crypto portfolio can help guard against excessive losses since some projects will outperform others. Over the next few minutes, we will discuss what a cryptocurrency portfolio is, the benefits of a crypto portfolio, and tools to help you manage one.

A cryptocurrency portfolio is a basket of digital assets consisting of cryptocurrencies. Crypto investors aim to improve their risk-adjusted returns by mixing and diversifying their cryptocurrency and token investments.

 means buying and holding Bitcoin. Did you know there are over 10,000 cryptocurrencies available? It is not feasible to buy all 10,000 for your portfolio, nor do you want to. The top five largest valued cryptocurrencies make up 76% of all cryptocurrency value.

The vast number of cryptocurrencies available speaks to the future potential of crypto. Therefore, including crypto as a portion of your overall investment portfolio makes sense. 

Before we dig into methods to build your crypto portfolio, let’s tackle some benefits a crypto portfolio may deliver.

The Purpose of Having a Balanced Portfolio

Most beginning crypto investors believe buying crypto simply means holding 

 in hopes its value moves up to $1 million per coin. Buying Bitcoin is a place to start. However, you can’t run until you first learn how to walk.

As we have seen in 2021, there are times when investors favor Bitcoin and other times that Bitcoin falls out of favor. Early in 2021, Bitcoin was accelerating higher in price behind speculation of its institutional adoption into corporate balance sheets. That favorable outlook was quickly reversed a couple of months later when debates about Bitcoin’s electricity usage and resultant carbon footprint began to swell.

An investor whose portfolio consists of just Bitcoin will experience volatile market swings. 

The first benefit of a balanced portfolio is diversity. Holding onto just one coin leaves you susceptible to the ups and downs of news that solely impacts that coin. 

Another example of this dynamic is Ripple. Recently, U.S. governmental bodies were focused on whether Ripple was initially 

. Ripple sold off on the news. Cryptocurrencies are largely unregulated, and the laws around them are still being created. Therefore, investment in just one coin pins the returns of your crypto investment to the performance of that one coin.

A secondary benefit of a balanced crypto portfolio is that when you spread your investments out, you have a better shot at picking a coin that outperforms. Indeed, the reason more than 10,000 cryptocurrencies exist is that each one is trying to improve on some real-world problem with cryptocurrency. 

Bitcoin is the largest and oldest cryptocurrency and has stood the test of time. However, we don’t know if someday there will be another coin worth more than Bitcoin if that newer coin improves on a certain fundamental quality. As you research cryptocurrencies, look for those projects that have the potential to solve real-world problems. For example, 

 solution to the oracles problem could be a potential alternative that will take off one day.

Lastly, having a diversified portfolio allows you to rebalance your portfolio so it doesn’t become overweight in certain coins.

For example, let’s assume you’ve invested in three coins: coin A, coin B and coin C.

You decide to allocate 50% to coin A, 25% to coin B, and 25% to coin C. You further decide to allow the percentages to deviate by 10%. Coin A rockets higher and, as a result, is now 60% of your crypto portfolio. Therefore, you decide to sell off a portion of coin A and buy coins B and C to rebalance back to the 50-25-25 split. This way, you are using the gains from your outperforming crypto to fund the rest of your portfolio. 

Having a balanced crypto portfolio means you’re halfway to creating a sustainable portfolio. Investing in digital assets is relatively new, with a lot of intimidating terminologies.

Take the time to learn and analyze them fundamentally before diving headfirst into the water. If you are ready to build, here are five foundational pillars to help you strive toward that balance and to manage your crypto portfolio. 

Many investors might not have a large lump sum that they can transfer from traditional investments into a crypto portfolio. Therefore, making regular small investments from your income cash flow, regardless of crypto prices, is a great way to build up your portfolio. As a result, dollar-cost averaging is one of the best trading strategies to build your portfolio that works in both up and down markets.

 (DCA) is an automatic system of making fixed dollar amount investments, regardless of a token’s price. By entering the investment in regular increments, you are smoothing out the anxiety resulting from imperfect timing. If the price of the cryptocurrency moves higher, you can add more shares in a strong bull market. If the price of the cryptocurrency moves lower, you will be able to add even more shares as your investment amount in fiat terms remains fixed.

One of the biggest advantages of the crypto economy is the decentralized nature of many coins. As you build your portfolio, you may have to deal with several different wallets, exchanges, and platforms, allowing you to take advantage of promotions. As a result, it can be cumbersome to manage your crypto portfolio across these wallets and trying to remember which cryptocurrency is where.

Crypto portfolio trackers are a way to solve this problem. A crypto portfolio tracker is a software that reads your wallets’ data and displays the aggregate information into a dashboard for you. Portfolio trackers make it easy for you to keep up with how much you have invested in each cryptocurrency. If one cryptocurrency is outperforming another, you’ll see it gaining a larger percentage of your overall portfolio.

Also, most portfolio trackers allow you to trade across many crypto exchanges, including Bybit, from their service. These trackers provide an additional convenience in that you do not have to log into each exchange account to make your trades. However, that convenience typically comes with a fee.

Another important benefit that crypto portfolio trackers provide is in tax planning and preparation. For example, in the United States, cryptocurrency holdings are treated as property. Therefore, a taxable event is triggered on the sale of crypto. A cost basis for the crypto holding is needed to accurately assess the tax implication. Even situations such as interest gained from staking alter the coin’s cost basis. As a result, an active crypto trader will generate a lot of transactions that need analyzing for tax purposes. A crypto portfolio tracker can help organize these transactions for record-keeping.

Crypto portfolio trackers come with a variety of features, but choosing one doesn’t have to be difficult. 

 Determine what convenience the tracker provides and what problems it will solve for you. Don’t forget about the time spent organizing your trades for determining your tax liability.

 Look into the app’s safety and security. Many crypto portfolio trackers link to crypto exchanges, and it is crucial to protect your coins.

 Practice makes perfect. Many trackers offer free trials so you can play around with them for a while.

 Look for a simple, clean, and clear layout. You don’t want to spend a lot of time trying to figure out how to use your portfolio tracker. An intuitive design will help make it easier for you to manage your crypto portfolio.

Now that you know what to look for, here are several portfolio trackers that may be of interest to you.

Crypto prices can be extremely volatile, with wild swings to both the upside and downside. Additionally, blockchain technology — which cryptocurrency fuels — is a relatively new technology and truly exciting. However, don’t let all of the hype put your emotions into overdrive.

Fear of missing out (FOMO) is a major reason why traders fail at portfolio management. Emotions usually lead to buying an asset at high prices, only to see a large correction take hold. Also, we can become anxious when the market drops 30% — because we are uncertain if that correction will dig deeper and become a 70% correction.

Successful crypto traders or investors are always rational about their plans and goals. There will still be good investment opportunities to grow your total portfolio balance. Using 

eradicates emotions and helps you foster more discipline trading strategies. All you need is just stick to the plan.

Every good plan must include an exit strategy. Science tells us that whenever our trades are winning, dopamine is released from our brain, making us feel good about our decisions. 

Absent an exit plan, that good feeling will cause us to stick with the position as a feedback loop kicks off. More gains lead to more dopamine, and more dopamine causes us to hold on to the trade. Then, if the market collapses, we hope it will bounce back. In a best-case scenario, the crypto market rallies again. But there’s also a worst-case scenario: the correction keeps going further and further.

Every great trend eventually ends. Sure, strong trends can last a lot longer than people anticipate. But eventually, the trend becomes oversaturated, and it changes.

A good trader is going to think about their exit plan BEFORE they enter a trade. This way, it is clear at what price they’ll close out the trade for a profit, and at what price they’ll close out for a loss. Again: stick to your plan.

A good portfolio management strategy includes diversifying your investments. You’ve heard the saying about not placing all of your eggs in one basket. In case the basket was to fall, you don’t want to lose all of your eggs.

A lot of hype surrounds fast-moving, high-performing cryptocurrencies. Some of the hype is warranted, as certain cryptos do have a promising future and solve real-world problems. Other cryptos solve real-world problems as well, but our world is still dominated by traditional business and finance. 

Two highly volatile and uncorrelated crypto assets can smooth each other out, providing outstanding risk-adjusted returns. The bad news is that a lot of cryptocurrencies are correlated to each other. Therefore, while diversifying your crypto portfolio can be challenging, it is still possible.

First, plan out a base for your portfolio. Which cryptocurrencies have large market capitalizations, leading to strong future potential? Second, consider investing a portion of your portfolio into stablecoins that you can lend out for a high-interest rate. Adopting a portion of your portfolio to act as a high-yield savings account means that a portion of your portfolio will always be gaining — even in a down market.

Third, consider small amounts invested into small high-growth projects. These projects may still be correlated to the gains and losses of the broader crypto market, but if one of them takes off, the additional growth may bump your portfolio’s overall value higher.

Do your research by reading up on the fundamentals of a cryptocurrency’s native token. Sometimes, the current price does not reflect the true value the token brings to the crypto economy.

If you are going to invest, how much is too much? Here are some of the suggestions from financial coaches:

 Invest less than 10% of your portfolio in crypto.

, says that “investors should have no more than 10% of their overall portfolio invested in crypto.”

Dan also notes that you can’t use crypto to pull you out of huge debt piles. If your cash flow isn’t stretching to the end of the month, cryptocurrency isn’t the solution to that problem.

, says “a classically oriented investor should keep the risk of highly speculative assets small. Depending on the risk profile, 1–5% of the portfolio is useful for physical exposure to cryptos.”

Salah-Eddine also notes that risky investors may use up to 20%, but that risk becomes extremely large and the portfolio is exposed to great volatility.

 revealed Vrishin Subramaniam, founder, and financial planner at CapitalWe, adds, “Two to 3% is usually what we see for most clients who are not tracking crypto markets more than once a week.”

Subramaniam recommends these conservative numbers as part of a wait-and-see strategy until we know more about the long-term performance of crypto.

Building your crypto portfolio doesn’t have to be complicated. However, it does require a plan and perhaps some help like a portfolio tracker. Even if you don’t have the excess cash to invest now, you can use dollar-cost averaging to build up a balanced portfolio. As with any investment, you will want to research the fundamentals behind an asset before buying. Your portfolio value often derived from how well you manage your crypto assets.

How to Manage a Crypto Portfolio Successfully (5 Easy Ways)

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