Home Business From the Metaverse to DeFi, let’s discover Bitpanda’s new thematic cryptoindices

From the Metaverse to DeFi, let’s discover Bitpanda’s new thematic cryptoindices

by admin
From the Metaverse to DeFi, let’s discover Bitpanda’s new thematic cryptoindices

A pillar of investment choices is to have adequate portfolio diversification and to do so it can be of great help to use tools that allow simple and immediate diversification. Just as ETFs represent an agile way to diversify risk and protect savings from any difficulties of a single company or issuer, the same principle applies to cryptoindices, i.e. indices that contain different tokens within them.

In a highly volatile market context, the cryptoindices proposed by Bitpanda are inserted precisely as an ad hoc tool to build a diversified cryptocurrency portfolio.

The objective of these innovative tools is in fact that of reduce the portfolio’s exposure to unwanted market volatility. In concrete terms, indices behave like any other digital asset on Bitpanda and therefore can be bought, sold or traded in seconds.

Why cryptoindices?

In recent years, ETFs that track broad diversified indices of stocks or other asset classes have become increasingly popular with investors, but there was no similar tool to do the same in the world of cryptocurrencies. Bitpanda’s cryptoindices have been designed precisely to fill this gap, offering the possibility of diversified exposure to cryptocurrencies. “Bitpanda’s cryptoindices have been a revolutionary thing for all investors interested in the crypto world, especially for newcomers who don’t know where to start to build their portfolio,” he explains. Eric DemuthCo-Founder and CEO of Bitpanda.

On a practical level, Bitpanda’s cryptoindices allow investors to buy multiple assets based on the underlying idea they believe in, without the need to manually review and balance their portfolios. In fact, investing through crypto indices has the advantage of automatically adjusting to market changes. They are also extremely liquid instruments.

See also  National railway direct power plants can spend more than 15 days for coal storage

Bitpanda introduced cryptoindices in 2020, such as passive cryptocurrency investment strategies, which allow both experienced and novice investors to build their own diversified crypto portfolio. The top three crypto-indices – the BCI5, BCI10 and BCI25 – auto-invest in the top 5, top 10 or top 25 cryptocurrencies respectively based on their market capitalization and liquidity.

Evolution with 4 thematic cryptoindices

Recently Bitpanda’s offer has been extended with four new Crypto Indeces that allow you to invest in crypto projects in four distinct thematic areas: Metaverse, Infrastructures, Smart Contracts and Decentralized Finance.
In this way it is possible to follow the most important market trends without the need to constantly look for the newest projects.
Here are the four thematic proposals in detail:

  • Leader of Infrastructure – coins that support decentralized programs designed to perform specific tasks;
  • Leader of the Metaverse – coins related to games and social networks
  • Leader di Smart Contract – coins that support blockchain protocols that allow you to host self-developed and third-party apps
  • Decentralized Finance Leader – coins linked to financial services built on decentralized networks without central intermediaries.

Automatic rebalancing

One of the main benefits of crypto indices is the fact that you don’t have to manually review and balance your portfolios. The cryptocurrency projects within each ‘basket’ are chosen based on the general theme and balanced based on market capitalization. Every month indices are automatically rebalanced based on market changes, calculations and reviews by MarketVector Indexes GmbH, the Indices department of VanEck, one of the world‘s leading asset managers.

See also  Food and beverage industry 2021 annual report and 2022 first quarter results overview: overall performance is solid, internal differentiation still exists_Oriental Fortune Network

This process is one of the greatest advantages of cryptoindices and is implemented in order to adapt the basket to the information of a constantly evolving market.

In tandem with the savings plan

Bitpanda customers can buy, sell or trade the new Cryptoindices, like any other digital asset on the platform, with a simple click. Those who own Bitpanda Cryptoindices usually combine them with a Savings Plan (Bitpanda Savings), which allows you to periodically schedule the purchase of assets.

Doing so is very simple. Once a savings plan has been created, the purchase takes place automatically at the set time, allowing investors to benefit from the cost average effect with maximum flexibility.

The Bitpanda Savings function allows you to set a periodic withdrawal frequency – which can be daily, weekly, biweekly or monthly – in addition to the amount to be automatically withdrawn by SEPA debit from the associated current account. For every buy, sell or trade transaction involving the crypto index, as for rebalancing operations, trading surcharges of 1.99% apply. On Bitpanda, all commissions for buying and selling cryptocurrencies and digital assets are already included in the prices offered.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy