ICONOMI and other crypto-funds: How to increase your profits!
Crypto index funds are attracting a great deal of attention in the world of crypto investments and will be one of the top themes for 2019.index funds make it possible to avoid the effort and stress of managing your own crypto portfolio. The best index funds also contribute to risk diversification by spreading your investment across a wider range of coins. In this way, investments are protected from market volatility.
Crypto-currency index funds work in the same way as all other index funds. Essentially, you buy shares in a fund. This fund consists of a selection of different crypto currencies. This means that you do not invest directly in a specific coin, but buy into the fund. The fund then invests your money in the selected crypto-currencies.
When you invest in a fund, you don't have to worry about setting up wallets or tracking coin prices - it's all managed by the fund manager. This service is of course subject to fees that vary from fund to fund. A higher fee does not necessarily mean a better managed fund. It is important to do extensive research before investing! For this reason we at Bitcoin-News.one will analyze some of the best known crypto currency index funds that could become even more interesting in 2019.
Iconomi is a platform for index funds. Iconomi offers a wide range of index funds, some of which have really interesting criteria for the coins they contain:
Introduces the Delta Summit Index (DSI), an index containing coins based on a vote of the participants of DeltaSummit - a leading block chain innovation event. Only time will tell whether this is just a gimmick or whether bundling knowledge in this way will actually lead to a well-functioning fund.
The Solidum Prime Index (SOPR) has the same amount of capital (4.35%) based on 23 different currencies. This is the first fund from this article that shows a majority in Altcoin capital. This index is designed to isolate from the risk of a loss in value of a single currency, while leaving the potential for capturing lesser known Altcoin assets that suddenly jump up in price.
Iconomi has a wide range of index funds that offer something for everyone: From the simplest index funds, a simple split between Bitcoin and Etheruem, to true niche offerings.
In the current crypto-bear market, it is not surprising that the best performing funds in the economy are the more conservative ones. In fact, the Coinbest 1 index fund (CBST: "benchmark for the most conservative crypto investors") outperforms all existing index funds. This fund focuses on the least volatile investments. This lack of volatility is intended to represent a sustainable value. At present, this fund manages almost a quarter of a million dollars.
Other crypto-funds: Coinbase Fund
Coinbase has become an industry leading exchange platform thanks to its user-friendly interface and trusted reputation. In order to benefit from this popularity and the large user base, Coinbasenun offers an index fund that currently tracks seven crypto currencies: Bitcoin, Ethereum, BitcoinCash, Litecoin, Ethereum Classic, Ox and Basic Attention Token (BAT). BAT is the latest addition, as it was only added to Coinbase's trading platform in early November 2018.
As expected, the majority of the fund is made up of Bitcoin. At the moment Bitcoin accounts for just over 75% of the fund. Here is the full breakdown:
- Bitcoin - 76.38% - Bitcoin
- Ethereum - 14.55 %.
- Bitcoin cash - 5.71%.
- Litecoin - 2.02%.
- Ethereum Classic - 0.64%.
- · 0x – 0.44%
- BAT - 0.25%.
The striking thing about this fund is that there is nothing exciting or unexpected, including the Altcoins. Coinbase largely adheres to the most common crypto currencies. The fund therefore focuses on large market cap coins, which should be less volatile than smaller market cap currencies.
BB Index offers a selection of index funds associated with Olympus Labs, a block-chain financial ecosystem. This means that there is a great deal of crypto-expertise behind this index fund creation.
Interestingly, there are 26 different index funds to choose from, which offers enormous flexibility and covers a large part of the crypto-currencies. Whether you simply want to buy into these seven best crypto currencies or prefer to invest in Altcoins, there is a BB index fund that suits you. Furthermore, the funds vary in the number of coins they contain. For example, the B7 focuses on theTop 7 currencies, theB50 on the Top 50 currencies.
This means that investors can truly personalise their portfolio by investing in multiple index funds and finding the right balance between risk and payout.
The Cryptos fund has the lowest management fee of all index funds listed here, at only 0.99%. The reason for this is that it passively tracks the Cryptos Currency Index 30 and is therefore intended to provide a fully transparent and carefully designed index.
The Crypto Currency Index30 tracks the thirty best performing currencies by adjusted market capitalisation. If you are looking for in-depth data & statistics on crypto currencies, this is a great place to research.
Since theCryptos funds track this index, you divide your investment in the buy-in a broad portfolio. This protects you from volatility, but also throws out the net far enough for you to catch a stellar, powerful coin.
There is no simple answer to the question "In which crypto index fund should I invest? ”. If you are new to the world of crypto-currencies, the Coinbase Index Fund may be the way to go - it is a trusted name in the industry with a proven track record and a user-friendly website.
However, if you are more familiar with the world of the crypto currency, then perhapsCoinbase's lack of access to Altcoins and its potential for stellar growth will move you more in the direction of a wilder index fund.
In the current market, more conservative index funds should perform better. However, should there be another "crypto bull run", conservative index funds may be less well positioned to achieve abnormal growth. Ultimately, it all comes down to the level of risk that you can feel comfortable with.