Bitcoin is the usual starting point for those investing in cryptocurrencies, but there is a sold case for investing in a spread of them.
The same case for diversified stocks and bond funds applies to cryptos. Crypto investment company Revix solved the risk of over-concentration in a single crypto asset by launching a Top 10 Bundle, invested equally in the 10 most traded cryptocurrencies.
At the time of writing, the cryptocurrency market stands at $318 billion, making up less than 0.2% of the world’s investable market. However, it has grown from $78 billion just three years ago – an annualised growth rate of nearly 60%. This makes it the top-performing asset class of the last decade.
These returns and the diversification benefits of the asset class have caught the attention of Wall Street heavyweights including Fidelity, the $7.9 trillion asset manager, as well as JP Morgan Chase, PayPal, Facebook and legendary hedge fund manager Paul Tudor Jones, who recently indicated that he would be increasing his holdings of bitcoin as a hedge against global inflation.
Sean Sanders, the founder of investment platform Revix, explains that: “Crypto is such a new and evolving asset class, it’s hard to guess how the market will play out in the future. If you try to gamble and pick individual winners, you could end up missing out on the Amazons or Microsofts of the crypto space.”
Low-cost diversified crypto-investing
For investors looking to gain crypto exposure, Revix, backed by JSE-listed Sabvest, has brought low-cost diversified crypto-investing to mainstream investors through their ready-made crypto bundles, making crypto investing as easy as buying the JSE Top 40.
“Buying, managing, researching and securing a cryptocurrency portfolio can be complicated, time-consuming and downright intimidating,” says Sanders. “So we created an ultra-simple investment platform that enables everyday people to invest in diversified baskets of the top cryptocurrencies for as little as R500. And what’s great is that you can sell out and withdraw your funds at any time.”
Revix’s bundles have shown impressive returns this year, all outperforming an investment in bitcoin which is already up over 50% this year. Revix charges no monthly subscription fees, but rather a simple 1% transaction fee for both buys and sells and a 0.17% per month rebalancing fee (which amounts to 2.04% a year) on the total bundle value held.
Revix’s flagship product is the Top 10 Bundle, which allows investors to hold the Top 10 largest cryptocurrencies in equal weighting, as measured by market capitalisation.
Says Sanders: “We believe that an investment bundle offering a passive diversified investing approach is a great way for many people to participate in the cryptocurrency asset class because it takes the guesswork out of which cryptos to back over the long haul.”
This is a classic diversified investment strategy, commonly used when investing in more traditional products like stocks and bonds but with the added benefit of more frequent rebalancing. Unit trusts or exchange-traded funds (ETFs) usually rebalance once every six to 12 months. Revix’s crypto bundles automatically rebalance once a month.
Investing on autopilot
Revix’s crypto bundles use in-house proprietary technology, enabling customers to directly own the underlying cryptocurrencies within their bundle. Sanders explains: “By taking a long-term diversified approach to this new asset class, with automated monthly rebalancing, you’re investing on autopilot and letting the top performers come to you.”
In addition to the Top 10 Bundle, Revix also offers two theme-based crypto bundles:
- The first is the Payment Bundle, which provides exposure to the top five payment cryptocurrencies aimed at making digital payments cheaper, faster and more global.
- The second is the Smart Contract Bundle, which consists of cryptocurrencies such as Ethereum that enable developers to build applications on top of their blockchains, similar to how Apple builds apps on top of its OS operating system.
Those looking for low-risk opportunities had better look elsewhere though as cryptocurrencies are a highly volatile asset class.
“We believe the real opportunity when it comes to crypto is not the day-to-day trading but long-term investing. If only one cryptocurrency had to take market share in the trillion-dollar remittance market, or become the de facto tender of a failed nation, or disrupt the financial market, you’d see the asset class grow by many multiples of what it is worth today. And, by the time you see it, it will be too late,” says Sanders.
“People are investing in cryptos for a variety of reasons,” he adds. “Traders love cryptos for their volatility, while others are taking a longer-term view.
“We want to build a community of crypto investors who are in it for the long-term. Despite all the negativity from the traditional investment community about cryptocurrencies when they first appeared on the scene, there is now little doubt that cryptocurrencies are going to be around for a long time and will account for a growing percentage of all investments globally.”
Brought to you by Revix.
Revix brings simplicity, trust and great customer service to investing. Its easy-to-use online platform enables anyone to securely own the world’s top investments in just a few clicks.
Revix guides new clients through the sign-up process, to their first deposit and first investment. Once set up, most customers manage their own portfolio, but can access support from the Revix team at any time.
For more information, visit Revix.
This article is intended for informational purposes only. The views expressed are not and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell any of the assets or securities mentioned herein. You should not invest more than you can afford to lose, and before investing please take into consideration your level of experience and investment objectives, and seek independent financial advice if necessary.