Why Crypto Thematic Basket Investing is a Game-Changer for Retail Investors
Cryptocurrency investment can be highly rewarding, and it also has many other benefits, such as allowing for completely anonymous investment. However, digital assets are highly volatile and almost as risky as they are profitable.
As crypto technology continues to advance, new investment avenues such as crypto thematic basket that promise to offer a secure and less risky way of investing in crypto are coming up. Although it is a relatively newer concept in the crypto sphere, crypto thematic basket investing is growing in popularity and is promising to be a game-changer for retail investors.
As a crypto investor, you need to understand what this form of crypto investment is and why it is a good idea to give it a try.
Crypto thematic basket investing entails investing in a basket of similarly-themed digital assets. These baskets group assets focused on a particular theme into one investment bundle, saving investors the time and effort required to select individual assets.
The crypto thematic baskets are curated by experts on platforms offering them or by algorithms that rely on data science and advanced quant.
These baskets are based on popular themes like Defi, Metaverse, NFTs, gaming, and blue-chip. The traders can also choose their basket based on the risk level, calculated by considering factors like potential returns and volatility.
Why Crypto Thematic Basket Investing is a Game Changer for Retail Investors
Investing in crypto thematic baskets does not guarantee that you will make high returns or suffer any losses when investing in crypto. However, it provides a smarter and more secure way of investing in crypto and greatly increases your likelihood of getting higher returns.
Here are a few pointers that show why these investment baskets make better sense to a majority of retail investors:
- Easier to manage for novice retail investors
Crypto thematic baskets are easier to manage, especially for novice retail investors. Having the digital assets as part of one bundle means you will not need to manage each separately, which also saves you a lot of time and money.
As a new investor, you will not need to research individual assets, which often takes a lot of time, as the algorithm does all the work for you. Therefore, the process of building your crypto portfolio will be quicker and easier.
1. It helps diversify crypto portfolios
One of the most effective risk management tools for crypto trading is diversifying your portfolio, and crypto thematic baskets will make this easier for you.
Although the assets in the basket are based on a specific theme, they are still different assets with different levels of volatility and risk. Therefore, you can quickly diversify your crypto holding by buying these baskets.
2. Crypto thematic baskets can lower overall trading risk
Diversifying your crypto portfolio with crypto thematic baskets reduces the risk that each digital coin carries. This will also help maximize the returns on your crypto holding.
3. Higher likelihood of making gains on your investment
Crypto thematic baskets are created by industry experts and some of the most successful cryptocurrency traders out there. They are also created after thorough and continuous research on the different assets and backed by a deep understanding of market movement and other trends.
Therefore, retail investors who invest in these crypto baskets are more likely to get higher returns on their investments than those who invest in several crypto assets individually.
Should you Give Crypto Thematic Basket Investing a Try?
Crypto thematic baskets are not all smooth sailing because, like all other forms of crypto investment, they have their ups and downs and are not guaranteed to make you a massive profit.
That said, they offer increased stability and are a convenient solution for retail investors. Therefore, despite the risks and limitations, they are an excellent investment for any investor looking for a way to deal with traditional crypto investing pain points.
Buying a single cryptocurrency can be easy if you know which one to buy but many people are not confident enough to know which cryptocurrency to back, and even the pros only get it right about 50 percent of the time, so buying a Bundle — rather like an EFT [exchange-traded fund] or unit trust — takes the guesswork out of it.
Unlike the pure plays on the rise of Bitcoin or any other single cryptocurrency, PECULIUMs crypto Baskets will offer investors a broader Basket of cryptocurrencies that passively track the growth of the broader crypto market. The concept has merit for investors as a unique way to profit from the next Bitcoin while significantly reducing the concentration risk (the specific risk associated with any single cryptocurrency).
Just as you would diversify your stock portfolio to reduce the risks of exposure to a single stock or industry, we do the same with cryptocurrencies.
PECULIUM has always been a company driven to democratize access to investment opportunities previously only available to the very wealthy. The development of blockchain technology has been a key factor in enabling this ongoing financial revolution. But blockchain goes beyond offering a more efficient replica of the traditional financial ecosystem-it enables new business models that are better aligned with the incentives of all market participants.
PECULIUM has developed saieve.io, a crypto investment and asset management platform that connects to exchange accounts and allows users to instantly access vetted trading strategies and investment portfolios. Founded to simplify trading strategy for users without any technical experience, PECULIUM has a growing offering of automated investment products.
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