A Crypto Selection Process: Screen, Sort, and Screen

Big data analytics have empowered unheard-of ways to refine and select the most attractive investment and trading opportunities based on defined and quantitative methods. Cryptocurrencies lend themselves to advanced study since the markets are continuously open, active, and priced for all to see. The following study was prepared using the CryptoWeighter portfolio analytic tool and the related Crypto Universe.

Step 1: I sorted the Crypto Universe based on market cap. In this case I selected the ten top crypto coins with market caps  between $650 million $1.0 billion. By simply clicking the coin icons, USD market caps are then generated for each coin. One can quickly narrow down the target range of market caps.

Step 2: I created a portfolio and weighted it by three different methods---market cap, price performance, and circ-max factor. All three portfolios are instantly displayed.

Step 3: As a guideline I would like to see which of the coins are ranked in the top half of the portfolio for each of the three weighting methods. Visually, this is simple to do, and here are the results. Only REN (Ren) and KNC (KyberNetwork Crystal Legacy) made the cut.

To test various selections, you can create portfolios based on your own systems and see how they do in real time.  

Miles P. Jennings, May 7, 2021

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