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The Definda Crypto Yield Optimiser is a tool for calculating the optimum strategy for investing a given fixed investment sum in crypto both centralised and decentralised crypto platforms in order to generate a return. The tool will take your investment preferences and determine the amount that you should invest in each platform in order to earn the best monthly interest, whilst keeping your portfolio diversified.
The advisor considers many different factors in determining the optimum portfolio. It works by reviewing thousands of crypto investment products stored in our database and calculating the total return based on allocating different proportions of the total investment amount into each of these products. You can see an example of the output of the algorithm below.
Determining the optimum portfolio manually is complex as there are many different potential yields, loyalty levels and potential investment currencies to consider. The Definda Crypto Portfolio Optimiser considers the following factors when determining the optimum investment strategy:
The algorithm looks at both centralised and decentralised crypto investment products. The centralised products on platforms such as Nexo tend to be lower risk, but with lower returns. The decentralised products are mainly on decentralised exchanges (DEXs) and involve investment in specific currency pair liquidity pools. Investments in DEXs tend to be higher risk but also higher return.
Centralised crypto platforms are increasingly using tiered interest rates on their investment products. These products provide a high savings rate on small deposits and gradually decreasing interest rates for higher deposits. By spreading your investment across multiple platforms you can collect all the best high savings rates from each platform. Our algorithm will spread your portfolio across a number platforms in accordance with your risk preference.
Many centralised platforms have loyalty programmes that reward you for holding part of your portfolio in the platform's own crypto currency. In return you can earn a higher rate of interest on all your savings deposits. Our algorithm considers whether it is worth investing part of your portfolio in loyalty tokens in order to maximise your overall return.
Each platform offers many different savings account currencies. Different currencies often attract different savings rates. Our algorithm will look through all the available currencies on each platform and work out which currencies can offer you the highest overall yield. It is important to remember that some currencies are higher risk than others, and that a currency offering a higher interest rate may be at a higher risk of devaluing when compared to your original investment currency. You can choose which currencies you are willing to consider under the investment preferences section, and if you want to reduce your risk you can restrict the algorithm to only allow investments in your original currency.
Some platforms allow you to receive your interest payments in a different currency to the currency that you deposited. In particular the platform may offer you a higher interest rate if you accept your interest payments in the platform's own token. Our algorithm looks at the different payout options on each platform and works out whether it is worth receiving your interest in that currency instead.
A few platforms have account limits, both in terms of the amount that can be invested in a particular currency and the maximum investment across the whole platform. Our algorithm will consider these limits when allocating your portfolio.
You can also use this tool to track your portfolio. You can record how much you have deposited on each platform and in what currency. The tool will then show you your total portfolio value and the interest you are earning.
The tool will save your portfolio to your local web browser so that this page will stay updated with your portfolio even after you close your browser down. You do not need to provide any personal details and your portfolio entries are not stored on our servers. This way your portfolio details remain completely anonymous.
To get started, just select "Manual Entry" at the top of the screen and then enter each of your platform deposits row by row in to the calculator.
We always rank and compare products objectively and impartially.
We carefully research products for legitimacy before adding them to the platform.
We never sell or disclose your data to anyone.