Using a Crypto Core and Satellite Investment Strategy + Bitcoin Trade Idea – UnumCapital
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Using a Crypto Core and Satellite Investment Strategy + Bitcoin Trade Idea

Using a Crypto Core and Satellite Investment Strategy + Bitcoin Trade Idea

EXANTE, the European fintech firm that made history in 2012 by launching the world’s first Bitcoin hedge fund, has recently added a range of altcoin funds aimed at private investor.

In August 2017, the Malta-headquartered company launched a dedicated altcoin index, XAI, which reflects the dynamics of the altcoin world (all popular cryptocurrencies minus  Bitcoin). The XAI-Fund, follows the index, to profit from the rise in prices of most altcoins in an easy safe and regulated way.

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The Unum Crypto Core and Satellite Investment Strategy

One way to gain investment exposure to cryptocurrencies is through a Core & Satellite Strategy, where:

1. The Core strategy, which invests in the Top 5 cryptocurrencies, provides exposure that is broadly representative of the market, and
2. the Satellite strategy, which includes up to 10 additional altcoins, has the potential to deliver higher returns through concentrated exposure at a reduced weighting.

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Current core allocation (40 – 60% of the portfolio):

1. Bitcoin
2. Ethereum
3. Ripple
4. Bitcoin Cash
5. EOS

Satellite investments

Altcoins including: Litecoin, Stellar, IOTA, NEO, Monero, Dash, Ethereum Classic, OmiseGO, Zcash and Basic Attention Token

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Trade Idea: Bitcoin ¬†– Finding It’s Feet?
A study of the price action for Bitcoin sees the price having been under significant pressure following the peak of $19891 on 17 December 2017. Lackluster trading has been the theme year-to-date however on 17 July we saw the price break the downward trend line which is being followed by a month-long re-test of the breakout level. We once again are seeing $5900 to $6000 as a key support level being held with yesterday’s candle reflecting some buying interest. At current levels, the price appears to be making a bullish reversal off the trend line, creating an opportunity for traders to take a buy/long position.
Trade Levels:
Buy/Long BTC at current levels $6300/50
Stop-loss: $5800
Take Profit Target: $7000

Lester Davids

Lester joined Unum Capital in July 2016 and is a Trading Desk Analyst focusing on local (JSE) and global multi-asset class technical strategy and research which includes idea generation.

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