Deciding on the best crypto index to invest in can be a difficult task. There are a lot of different options available today. Each index has unique features, services, and fee structures that can add to the confusion. Luckily, you won’t have to spend the rest of the week researching to discover the best options available today.
Why Using a Crypto Index Makes Sense
Crypto indexes gather together relevant projects to provide you exposure to an entire sector. These investment tools enable you to participate in the price performance of individual cryptocurrencies or the overall market. There are many different types of indices available today.
Notably, crypto indices are set up according to various criteria that are determined in advance. In many instances, you can balance your portfolio based on market cap, trading volume, or gains. By spreading out your investment capital across multiple assets, you gain more stability and ROI potential. Automated crypto indexes further your benefits by eliminating human emotion from your trading strategy.
Crypto Indices are growing in popularity for many reasons. For one, these investment tools allow you to consistently monitor the market 24-hours a day. Recently, the introduction of more affordable and automated crypto indices has made this trading strategy accessible to everyone. Here are the best crypto indexes to improve your ROIs in 2021.
Crypto Army
At the top of the list is the Crypto Army platform. This protocol operates as a smart crypto index service. The network introduces a variety of automated portfolio management services that make it ideal for expert and new users alike. The platform integrates enterprise-level security and over 50 years of market experience to create a unique platform that services the needs of traders.
Crypto Army has been around since 2020. The network has conducted well over $100 billion in trades since that time. Part of the network’s success can be attributed to its open enrollment and the removal of any subscription fees. As such, there are no financial barriers preventing traders from joining the Crypto Army. For example, you only need $150 to start a portfolio on the network.
Crypto Army integrates rebalancing features and a variety of top-performing indexes. Users can gain exposure to DeFi and NFT markets utilizing these indexes. There are also indexes that focus on the top-performing coins and much more. Best of all, the network has a low fee rate of 2.5 % on your allocated funds.
Shrimpy
The next contender on the list is Shrimpy. Shrimpy is another advanced crypto trading platform that provides a plethora of unique features to the market. For one, it offers users multiple bots to choose between and access to over 700 different cryptocurrencies across 15+ exchanges.
Shrimpy provides traders with more flexibility when compared to its competitors. For example, there are a variety of rebalancing options available to keep your portfolio in check. You can select rebalancing options based on market share, value, and trading volume. In this way, users can better manage and monitor their digital asset holdings.
The premier feature of Shrimpy is its social trading protocols. These services allow you to scroll through the history of professional traders and select which ones you would like to follow. Currently, the network support COINBASE Pro traders. Notably, traders get paid a commission for each follower they obtain.
BitPanda
BitPanda is a popular trading platform that originated as a cryptocurrency broker. The network differs from some of the others listed in that it was built primarily to service enterprise-level clientele. BitPanda is fully regulated in the EU which makes it a good option for institutions seeking exposure to the crypto market.
The Bitpanda Crypto Index I is the network's premier trading index. This feature enables users to select between the top 5, 10, or 25 cryptocurrencies based on market cap and liquidity. The index integrates a rebalancing feature that automatically adjusts your holdings to reflect any changes in the market. There is also a dollar-cost averaging feature that enables you to add to your portfolio through timed purchases on a daily or weekly basis.
Another cool feature that is unique to the platform is Bitpanda Metals. This service enables users to invest in 100% insured, physically-backed metals such as gold, silver, platinum, and palladium. In this way, Bitpanda offers an excellent selection of assets to help you secure high ROIs.
FTX Move Indices
The FTX Exchange is a popular cryptocurrency derivatives trading platform. The protocol is best known for its advanced features including Bull and Bear tokens. These tokens are designed to reduce risk by rebalancing daily to maintain all target positions.
FTX simplifies investing in many ways. The platform is known for its large selection of indices. The exchange’s latest product, the FTX DeFi Index, provides direct exposure to many of the top DeFi platforms available today. This unique index includes AAVE, AVAX, BAL, BAND, COMP, CREAM, CRV, DOT, KNC, LINK, MKR, MTA, REN, REP, RUNE, SNX, SOL, SRM, SUSHI, SWRV, TOMO, UNI, WNXM, and YFI.
Notably, FTX Indices are equally weighted in your portfolio. This approach gives you a good spread and helps to eliminate any major losses due to a drop in the value of a single investment. FTX also offers support for a variety of other markets including precious metals and stocks.
Crypto20 (C20)
The Crypto20 index provides traders with a secure way to invest in the top 20 cryptocurrencies based on market cap. Interestingly, the platform leverages a token that represents these coins based. This approach simplifies monitoring.
Anyone can track the overall market performance and take advantage of diversification benefits to better protect their profits. C20 tokens can also be used to earn loyalty rewards in InvictusCapital.com tokens (ICAP). In this way, Crypto20 meets the needs of long-term investors.
Top Crypto Indices for 2021
Introducing a crypto index into your investment strategy is a great way to lower your risk and increase your market exposure. Now that you better understand the market, you can see that there are a lot of great options to take your investment strategy to the next level. The main thing to remember is to stick to only reputable firms like the one listed in this article to avoid unnecessary losses. If you can do that, you will find it easy to push your ROIs to new heights.
