How to Share a Virtual Portfolio That Can Be Trusted by Anyone

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Contributor, Benzinga
December 5, 2022

Blockchain has provided a decentralized platform enabling people to store valuable information without a third party. Its sharing ability has allowed investors to share trusted public well-performing virtual portfolios. This tool has enabled investors to build track records based on real market conditions without risking money upfront.

This guide explains what a virtual portfolio is, how it works and the key factors investors should analyze to receive the optimal benefits from it to increase their returns.  

What is a Virtual Portfolio?

A virtual portfolio is an account enabling investors to access an environment that mimics live market conditions. The key difference is that investors don’t risk real money. Using a virtual portfolio is a great way to get a feel for the way markets operate and to test out a platform.

It doesn’t require upfront financial investments and enables new traders to practice before switching to a live account. 

How Does a Virtual Portfolio Work?

A virtual portfolio is a simulated collection of assets such as stocks, bonds, cryptocurrencies and exchange-traded funds (ETFs). 

Advanced charting is available on a virtual portfolio, enabling technical and fundamental analysis. Investors open positions and then monitor the performance of their portfolios. A virtual portfolio enables investors to close positions, but the profits and losses don’t represent a financial gain/loss because real money isn’t used.

A key benefit of a virtual portfolio is that it enables investors to build various strategies and determine the best-performing ones without risking their money. 

Since investors cannot lose funds, the psychological factor of trading in this environment is removed. Investors are likely to take bigger risks than they would with a live account.

6 Important Shareable Virtual Portfolios Features

Most virtual portfolios are free, but investors shouldn’t opt for just any platform. This is a chance to build a track record. Make sure it contains key features to access tools that provide optimal benefits.

Transparency 

A blockchain recorded virtual portfolio enables anyone to view your track record. Interested viewers can be friends, potential investors, or recruiters. 

Ownership 

Having the freedom to control an account provides investors with ownership of their track record. That feature gives investors peace of mind knowing that their hard work cannot be taken away from them.

Credibility

An online portfolio serves as a resume. It contains a track record that can be used to demonstrate skills, performance and experience. Using a virtual portfolio as a resume enables investors to raise funds, seek employment and earn rewards from sharing strategies with other investors.  

Trust

While a resume can be fictitious, a virtual portfolio on the blockchain consists of real transactions. Those transactions cannot be deleted, and their permanent presence helps investors build trust.

Trades also cannot be altered or reversed, reducing the possibility of fraud. The less a portfolio is prone to tampering, the more it is trusted.

Multiple Types of Assets

Although, select virtual portfolios are built on the blockchain. Some, like Covey, enable investors to trade multiple assets such as ETFs, securities and cryptocurrencies.

Having access to various assets enables investors to determine if a particular strategy works in different markets. An investor who isn’t successful in a particular market can switch to a more suitable one.

Easily Shareable 

Investors wanting to share their portfolios with others can easily do so by sharing links. That provides convenient access to parties wanting to sample a portfolio. There are many trusted blockchain explorers that will display information about the transactions that make up a virtual portfolio. 

Alternatively, an investor can share screenshots of the portfolio. The sharing feature helps build trust among the parties. 

Constantly Updated Metrics

Since a virtual portfolio emulates live market conditions, its metrics are constantly updated to reflect the latest data. That feature enables investors to track their portfolios in real-time and avoid delayed updates to monitor their performance as it unfolds.

Virtual Portfolio — Gateway to Investing

A risk-free way to begin investing is via a virtual portfolio. It enables investors to access live markets without using real money and test strategies to determine the ones yielding the highest profit.

Sharing a virtual portfolio with others enables investors to use it as a resume for attracting employers, funds and rewards. A virtual portfolio also enables investors to discover different assets and find the most suitable methods for a specific trading strategy. 

Frequently Asked Questions 

Q

What is a mock portfolio?

A

A mock portfolio is a simulated collection of assets, enabling investors to trade in an environment emulating real-market conditions without risking real money.

Q

What is the best way to track your portfolio?

A

Use an online portfolio tracker that provides access anytime and data ownership, enabling you to track your record.

Q

How do I start a virtual portfolio?

A

Add investing ideas by picking a ticker and target percent allocation. Before deciding on a virtual portfolio, make sure they offer real-time market views, active analysts and backed by performance.

Goran Radanovic

About Goran Radanovic

Equities, Forex, Crypto