CRYPTO20 is the very first cryptocurrency index fund to be tokenized. This makes it possible for anyone to have his or her own diverse crypto portfolio without having to actually buy the various cryptocurrencies themselves. CRYPTO20 is currently in its ICO phase, giving investors the chance to get involved.
How CRYPTO20 Creates a New Investment Paradigm
The primary goal of CRYPTO20 is to develop a new investment paradigm that makes the actual process of investing simpler on those involved. The ICO funding will be used to purchase the underlying crypto assets. The index fund will then provide users with complete blockchain transparency.
One of the goals of CRYPTO20 is to make investing simple and straightforward. Instead of having to individually analyze the thousands of emerging cryptocurrencies, investors can simply invest in CRYPTO20 and take advantage of the market as a whole. This reduces the cost of investment, as there is no need to perform a deep analysis or consult experts for advice before choosing a cryptocurrency. Instead of human advice, CRYPTO20 relies on data science and a set of carefully determined hyper-parameters.
Best of All, There Is No Middleman
Investors will have complete control over their own assets with CRYPTO20. Many companies are profiting off this by serving as middlemen for investment. They take a cut of the investors’ profits, but CRYPTO20 does the opposite. There will be no need to worry about minimum investments, and there are no exit fees, either. Additionally, investors don’t have to pay broker fees, allowing them to invest more easily. Simply put, CRYPTO20 is transparent and free from fees for things like brokers, advice, and even using the platform.
Investors can take action 24 hours a day, 7 days a week, as trading is as simple as exchanging C20 tokens. CRYPTO20 also has the lowest fees. While the market typically offers 3 percent, CRYPTO20’s annual fee is only 0.5 percent per year. To take the lack of a middleman to the next level, this platform is completely autonomous. This means that there is no need for a human manager to complete active trading, something that helps keep down costs.
Choosing to Combine Cryptocurrencies with Index Funds
With CRYPTO20, the team is essentially taking the strong reputation of index funds and applying it to the world of cryptocurrency. This is a logical step considering that index funds consistently beat the averages of managed funds, and they have throughout their entire history. By using CRYPTO20, investors are able to track the crypto markets’ performance as a whole and profit off of them.
What Assets Does CRYPTO20 Hold?
The portfolio for CRYPTO20 will be set up as a hybrid type based on an index trading strategy. All the ICO funding will go toward purchasing the cryptocurrency assets that underlie the fund. By holding just one token, investors are able to diversify and essentially invest in the top 20 crypto assets. In other words, the assets will be divided among the top 20 cryptocurrencies.
The cryptocurrencies will be rebalanced every single week and are chosen based on market capitalization. Each asset has a maximum weight of 10 percent, so no asset is able to dominate the overall portfolio. The portfolio always features broad market exposure, helping balance out the significant risk typically associated with cryptocurrencies, as these investments are still relatively new compared to fiat currencies and other investments.
As of Aug. 16, 2017, each Bitcoin, Ethereum, Ripple, and Bitcoin-cash represent 10 percent of the portfolio. Other cryptocurrencies included as of that date to a lesser proportion include Dash, Ethereum-Classic, EOS, Iota, Neo, Litecoin, Nem, Qtum, Monero, Omisego, Stratis, Waves, Tenx, Bitshares, Zcash, and Steem. As mentioned, the exact cryptocurrencies and the percentage of the portfolio they comprise will change weekly.
Whom Will CRYPTO20 Appeal to?
The developers behind CRYPTO20 believe that this platform will appeal strongly to those working on building wealth. It is a good method for those who want full exposure with cryptocurrencies or the cryptocurrency index. The ideal investor understands that while the index trading method reduces the risk, the cryptocurrency market is still very volatile. This means that there might be losses in the short term. Over the long term, however, investors in CRYPTO20 will see their money increase in response to the ever-growing cryptocurrency markets.
About C20 Tokens
The C20 tokens have been directly tied to the assets that underlie the platform. This allows for a liquidation option within the smart contact. That unique option protects your asset price while ensuring it cannot go below the share of underlying assets the token represents.
The ICO for CRYPTO20 is in progress. As of the time of writing, there are 2,493 backers. 5,733,294 C20 have been sold so far with a fund value of $5,598,802. This includes 10,410 Ether, 377 Bitcoin, and 6,349 Litecoin. No more C20 tokens will be sold once the ICO is complete. After this point, tokens will be acquired via trading. The ICO began on Oct. 16 and will last until Nov. 30.
How Can You Invest in the ICO?
Investing in CRYPTO20’s ICO is very simple. Begin by creating an account on its website or logging into your existing account. An account is necessary to ensure your investment progress is transparent and provide ease of access in the future. You will also need to verify important information as a method of preventing fraud. Once your information is verified, you can begin investing by submitting your ETH wallet address, which should be where you prefer to receive the C20 tokens. This should not be an exchange address. Then, you can send your investment in ETH, BTC, or LTC. You can then view your investment balance, deposit amount, and the amount of C20 you’ll receive on your account page.
CRYPTO20 offers a unique solution in the world of cryptocurrency, appealing to any investors who feel overwhelmed by the research involved or concerned about the risks. After all, cryptocurrency markets are known for their volatile nature. With CRYPTO20, you can maintain the attractive returns traditionally offered by cryptocurrencies while minimizing the risk and making them easier to engage in.