What are crypto baskets, and how is NeoFi making it easy to invest in them
If you’re new to crypto investing and overwhelmed by endless options, baskets may be a great solution. Read on to find out how crypto baskets offer a simplified and more diverse approach to investment.
What is a crypto basket?
When used in cryptocurrency, a basket refers to a collection of digital currencies managed as a single asset, minimizing holders’ need to continuously monitor individual currencies. A crypto basket is also used interchangeably with a crypto index fund.
Baskets are created by crypto experts, influencers, and VCs who have done their research. These portfolios are composed of multiple cryptos, intelligently weighted to track a specific theme, strategy, or objective. And the best part?
How Does a Crypto Basket Work?
A basket can take many shapes and forms depending on its guiding theme.
For instance, the CMC Top 5 offered by NeoFi is a crypto basket that invests in the Top 5 cryptocurrencies by market cap on the Coinmarketcap website. Also, the Interest Earning basket invests your assets in a portfolio of tokens that earn interest over time.
Advantages of a crypto basket
Crypto basket investing can help you purchase multiple crypto assets in one click. It allows you to quickly build up your crypto portfolio and helps you diversify.
One of the most significant advantages is Auto Rebalancing. Crypto baskets from, Neofi and most other providers have an auto-rebalancing feature. They automatically rebalance the crypto assets in your portfolio to the desired or specific mix you started with at regular intervals. It helps you maintain a healthy balance of risk-to-return ratio at all times.
How to invest in crypto baskets on NeoFi?
NeoFi’s crypto baskets are created & managed by expert professionals. Depending on the type of basket, it can be managed by NeoFi or third parties(Hedge funds, Influencers, successful traders, etc.).
Additionally, you can create your own basket. Simply list up to 20 crypto coins you like or have been recommended, and save it as a draft to track its performance before investing.
Still determining if a crypto basket will bring you the profits you’re looking for? Take your time with investments and do your due diligence — use the power of watchlists and drafts to make informed decisions. Add it to your watchlist and track its performance before investing. This way, you can see how it’s been doing and make sure it’s a wise investment decision. And when it comes to creating your crypto baskets, why not save them as drafts and track their performance before finally investing? You can always edit and finetune your drafts to ensure maximum profits.
Now that you have curated and invested in the optimum basket, keep track of your portfolio in NeoFi. When you buy a basket, it’s assigned an index value of 100. From there, you can easily track the basket’s performance. For example, after a year, your index value is 161 — that means your basket has returned a 61% profit. And if you want more detailed insights, other performance metrics are available at the portfolio level.
We have learned that while there are a few different ways to build a crypto basket, NeoFi has made it simple by doing all the heavy lifting for you. All you have to do is download our app and start investing in baskets that fit your goals. So, start building your crypto portfolios today on NeoFi!
NeoFI is a crypto-investment solution designed to automatically help every scale investor diversify their investment portfolio and risks. NeoFi relies on NeoFi baskets to help investors invest in their preferred niche with a single click.
NeoFI is working to onboard the next billion users to the cryptocurrency space. The project believes that its efforts will revolutionize the world of cryptocurrencies and level the playing field in the market by offering more tools to retail investors in the market. Learn more about the project at https://neofi.app/.