As the crypto world is still rather new and volatile, there is a lack of long established patterns that would normally give credence to the buy and hold strategy. In the absence of this clarity, an index fund such as Crypto20 is the closest assimilation that enables this conventional strategy.
Crypto20 is not a platform but rather a fully functioning product. Its value is not based on speculation because it retains an inherent net asset value of the 20 underlying cryptocurrencies in its diverse portfolio. With around 1500 different cryptocurrencies to choose from, Crypto20 eliminates confusion and choice complexity for the new crypto investor. Crypto20 allows for access to a diverse cryptocurrency portfolio by holding a single token.
The CRyptocurrency IndeX (CRIX) is a benchmark designed for the crypto market, utilizing a market-share-weighted system with 65 different coins, developed by the University of Humboldt and Singapore Management University. Rescaling CRIX to begin at $10,000 it was compared to the Crypto20 fund for the same time period.
The cryptocurrencies held in Crypto20 will be securely stored on several Ledger Nano S hardware wallets when supported, or else on encrypted USB drives. These storage devices will then be secured in safety deposit boxes with back-up paper wallets at separate secure locations.
The only opportunity to purchase C20 is on an exchange. Since no more tokens were made following the ICO, a genuine supply and demand ensued, demonstrated by the often higher listed exchange price compared to its net asset value.
The logic behind this demand is that 1) why would you ever sell C20 for less than its fundamental worth, and 2) if you still intend to own cryptocurrency why sell your portfolio?
Although the number of exchanges, services and payments relating to cryptocurrencies has risen exponentially, there are still many people who consider the market a speculative, imploding bubble that constitutes unacceptable risk.
Whilst cryptocurrencies may be used speculatively and exploited by shark traders, this does not equate to each currency in question being a speculative investment. Each currency presumably came about with a functional application in mind, operational on a decentralised blockchain. The mixture of successes and failures along the way do not eliminate the enormous value this entrepreneurial technology brings. â The broad exposure of Crypto20 with its limited risk, makes it extremely attractive.
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*Please understand that the information on this site does not constitute financial advice in any way.
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