Buying the JSE Top 40 index is a proven way to spread risk through diversification and profit from the returns of the 40 largest companies listed on the exchange.
Revix, the crypto investment company backed by JSE-listed Sabvest, offers the same thing in the rapidly-emerging crypto market. Sign-up is simple, the minimum investment is R500, and there are no monthly fees. You can sell your crypto investment at any time and withdraw your funds. And there are no lock-up periods like there are with other investment funds.
You have the choice of three crypto ‘bundles’ (similar to unit trusts).
“Buying a single cryptocurrency can be easy if you know which one to buy,” says Sean Sanders, founder and CEO of Revix. “But many people are not confident enough to know which cryptocurrency to back, so buying a bundle – rather like a unit trust – takes the guesswork out of it.”
You can also buy and sell bitcoin, USDC (a ‘stable coin’ fully backed by the US dollar) and a gold token called Pax Gold through Revix’s online platform.
Buying a ‘bundle’ rather than a single crypto makes owning a diversified crypto portfolio more convenient and less risky as you’re not exposed to the price fluctuations of just one crypto asset.
Revix’s bundles aim to ensure that customers own the largest, and by default the biggest, success stories in the crypto space, whatever they may be.
Each of Revix’s bundles has produced exceptional returns on a year-to-date basis, and have outperformed an investment in bitcoin alone.
The Top 10 Bundle spreads your investment equally over 10 largest cryptocurrencies – which covers about 85% of the crypto market when measured by market capitalisation – with each having a 10% weighting. By default, you are buying the 10 biggest success stories in the crypto space. The weightings are adjusted monthly to ensure no crypto exceeds a 10% weighting.
While bitcoin accounts for about three-quarters of the total crypto market cap, it only accounts for 10% of the weighting in the Top 10 Bundle. And while it’s true that bitcoin has been the star crypto performer in recent months, it’s actually underperformed the broader crypto market over nearly all longer-term time horizons.
In fact, while bitcoin is up nearly 150% in 2020, Ethereum, Polkadot, Litecoin and Chainlink are all up well over 300%, having significantly outperformed bitcoin on a relative basis.
These cryptos are all in Revix’s Top 10 Bundle and their returns have bolstered the bundles’ returns, so having your investment spread over the 10 biggest cryptos gives you exposure to some potential winners in the crypto space without having to guess which ones they are.
In addition, Revix offers two theme-based crypto bundles which provide exposure to groups of cryptocurrencies which have similar functionality and objectives.
The Payment Bundle provides exposure to the largest five payment-focused cryptocurrencies looking to compete with government-issued fiat currencies to make digital payments cheaper, faster and more global. These cryptos include bitcoin (BTC), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH) and Stellar (XLM).
The Smart Contract Bundle tracks those cryptocurrencies that aim to offer an open-source, public network without any downtime, fraud, control or interference from third parties. Smart Contracts use the blockchain to allow peer-to-peer transactions without the need for third party verification. This bundle comprises cryptocurrencies like Ethereum that enable developers to build applications on top of their blockchains, much like how developers build mobile apps on top of the Apple mobile iOS operating system. The cryptos in this bundle include Ethereum, Cardano, Tron, Neo, and EOS.
Revix charges no monthly account or 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 (this fee is not levied on single cryptocurrencies like bitcoin or Pax Gold).
Revix’s bundles offer a few added benefits:
Peace of mind
First, before any cryptocurrency enters the bundle, Revix evaluates it for security, liquidity, regulatory status and other factors. This ensures it can be held in a safe, secure, and regulatory-compliant manner.
Automatic monthly rebalancing
Revix’s algorithms automatically rebalance a customer’s bundle holdings monthly, so that they are equally weighted to ensure that they stay current and capture emerging cryptocurrencies. An equally-weighted bundle ensures that holdings are as diversified as they can be. There are advantages to having a bundle equally-weighted rather than market-weighted. In a market-weighted bundle, more than 75% of your investment would be in bitcoin and Ethereum. In the Top 10 Bundle, your bitcoin and Ethereum holdings are capped at 10% each, so you get wider exposure to some of the other emerging stories in the crypto space.
Smart price execution
Lastly, Revix offers customers a unique price-routing system enabling customers to obtain the best prices available at the moment of purchase or sale. “We aren’t a crypto exchange, and this means we have the ability to source the best pricing and liquidity for our customers across multiple crypto exchanges at any given time,” says Sanders.
Diversification of the kind offered by Revix’s bundles is a sensible and easy way for newcomers and seasoned investors alike to get exposure to the crypto asset class.
“Stocks, bonds and real estate are core asset classes for a diversified portfolio, but investing in cryptocurrencies and gold may further assist investors build even more diversified portfolios.
“Cryptocurrencies have historically performed as an uncorrelated asset, meaning that they do not ordinarily move with stock or bond markets. As a result, they may provide diversification benefits to an investment portfolio that previous generations of investors could only have dreamed of.”
Brought to you by Revix.
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.