If you are new to the cryptocurrency market and are interested in diversifying your investments, you may want to take a look at the concept of a crypto basket. This relatively new investment tool simplifies the process of investing in crypto, especially for passive investors. It allows you to invest in a variety of coins, and it has an auto-rebalancing feature to help maintain a healthy risk-to-return ratio.
A crypto basket is a portfolio of multiple digital assets that have a similar theme. Some crypto baskets contain different cryptos within the same sector, while others bundle together cryptocurrencies from different sectors. A blue-chip crypto basket, for example, bundles the best performing cryptocurrencies from different sectors to reduce risk. It's important to note that some sectors may have higher volatility than others, which may impact the performance of your portfolio.
Another advantage of a crypto basket is the ease with which you can monitor your investments. Many crypto assets are volatile and can lose their value overnight. Using a crypto basket can minimize this volatility and simplify the process of building a multi-coin portfolio. Although crypto baskets may not be perfect, they're still an excellent way to diversify your portfolio and minimize risk.
Jaltech's Cryptocurrency Basket is a managed investment portfolio for individuals looking for an easy way to invest in crypto. This portfolio is managed by a team of cryptocurrency experts who make decisions on which cryptocurrencies to include and exclude. The cryptocurrency basket is continually updated to reflect market trends and other factors.
In addition to tracking a variety of crypto currencies, the 21Shares Crypto Basket Fundamental DeFi Index aims to offer a broad exposure to the Decentralized Finance (DFi) industry. The index's composition is capped at 35% exposure to each component. The Compass Crypto Basket is available like a stock on a major exchange and rebalances monthly.