With more than 109 million individuals using cryptocurrencies globally, digital assets are trending currently. The number is huge, and so is the potential of digital assets in the coming years. However, there are literally thousands of cryptos and NFTs to choose from.
Investing in digital assets comes with a bunch of benefits, such as higher returns, a hedging option against inflation and equities, diversification, transparency of transactions, ease of investment, and a lot more. The question is from where to begin investing in them and how?
Well, the answer is Coin Sets –baskets of different cryptocurrencies and digital assets. Let’s explore this investment option and how you can benefit by investing in them!
What Are Coin Sets?
Coins Sets are expert-crafted baskets of cryptocurrencies offered by Mudrex. Each basket follows a theme and contains the best tokens from that sector. Based on your preference, you can decide where you want to invest your money.
Coin Sets help you diversify your portfolio in digital assets and earn at par returns while mitigating the overall risk. They eliminate the need to decide the diversification ratio among different cryptocurrencies because tokens and their ratios in Coin Sets are governed by the in-house Mudrex team.
With Coin Sets, our main goal is to let you invest in crypto, index-style.
What Are Indices, and Why Invest in Them?
Indices have been the best way to invest in the stock market for years. Even the great investor Warren Buffet concurs with it.
Instead of stock picking, Buffett suggests investing in a low-cost index fund. “I recommend the S&P 500 index fund,” Buffett said, which holds 500 of the largest companies in the U.S., “and have for a long, long time to people.”
To further explain his point, he shared the list of automobile companies in the 1900s. At least 200 companies entered the sector during this time because of the buzz around it. In 2009, only three companies were left from that list, two of which were bankrupt.
Imagine if you had invested in a couple of automobile companies in the 1900s, you know where you would be. This is because markets are dynamic, and world events can greatly influence their directions. To avoid finding yourself in such a situation, an index fund is highly recommended.
It helps you invest in multiple assets from a sector that are periodically rebalanced to help you keep up with the market. Since the frequency of rebalancing is not as high as trading, it aids in avoiding the noise too.
For instance, the SOL crypto is a part of a few of our CoinSets like New Crypto Stars, Smart Contract Platform, etc. A bunch of people who held SOL probably sold it after the FTX fiasco. However, people who invested in these CoinSets still hold it. If this uncertainty around SOL is just a FUD, those who sold might be in for some regret when the noise clears up. Meanwhile, Coin Set investors would be chilling.
How Do Coin Sets Work?
A stock market index consists of different stocks aggregated on the basis of a theme. For example, the Nifty 50 consists of the top 50 large-cap stocks in India, while Nasdaq 100 consists of the top 101 stocks of non-financial companies in the U.S. The theme for Nifty 50 is the largest and most frequently traded stocks, and for Nasdaq, it is non-financial company stocks.
Similarly, Mudrex has built Coin Sets. There are more than 20 themes to choose from, based on your preference. Some of the popular themes are:
|Crypto Blue Chip||5 top cryptos by market cap||BTC, ETH, XRP, BNB, and ADA|
|NFT||6 popular NFT platforms||FLOW, MANA, AXA, SAND, KLAY, ENJ, SLP, APE|
|Smart Contract Platforms||7 Smart Contract Platforms||ETH, BNB, ADA, SOL, DOT, TRX, AVAX|
|Metaverse||8 Top Metaverse Projects||FLOW, MANA, SAND, AXS, KLAY, ENJ, SLP, APE|
We also have bifurcated themes by five factors: most popular, trending, top gainers, newly launched, and by the dip.
This makes it easier for you to compare Coin Sets and decide on the best one according to your theme preference.
Typically, when you invest in an asset, say stocks, you have to pay the brokerage house commission on your transactions. However, with Mudrex, the icing on top is that we do not levy any management fees on your investments.
Why Should You Invest in Coin Sets?
Apart from the already mentioned advantages, let us take you through what more you get by investing in Coin Sets.
Easy to Invest and Time-saving
The whole point of Coin Sets is to enable simplified crypto investing. We are not just another platform that lets you buy cryptos. We want to be your partner in building wealth.
We’ve done half your job by shortlisting the best from the lot, saving you a bunch of time that you would have otherwise spent digging through thousands of cryptos. All you have to do is figure out which themes you are bullish on and start putting some money there. If you think that’s too much to ask, you can just invest in the Crypto Blue chip Coin Set. It consists of the top 5 cryptos by market cap.
Tell us this isn’t easy now!
Expert-picked Coin Baskets
Making money is time-consuming enough. An average person spends about 90,000 hours at work. This is insane!
If you spend the remainder of your time figuring and worrying about your investments, where is the time to live life? Plus, would you be able to do a better job at investing than someone who has been doing this their entire life?
No, right? So why bother? Let experts take the lead and help you invest better. Each crypto in a Coin Set is handpicked by experts who carefully allocate ratios. There are experts helping you at every step of the way, from investing to rebalancing, so that you spend your time wisely while reaping at par returns.
But if you think you can manage your money better, by all means, go for it.
Diversification and Risk Mitigation
The first rule of investing is ‘diversification.’
It helps reduce the overall risk of your portfolio, and Coin Sets just make the job easier. It divides your total investment amount into small chunks and invests in different digital assets. For example, instead of investing in just Bitcoin, the Crypto Blue chip Coin Set enables you to invest in Bitcoin and four other cryptos weighted by market cap.
This ensures that if one coin shrinks, others in your portfolio balance or overset the loss.
Coin Portfolio Rebalancing and Reallocation
Portfolio rebalancing and reallocation is the process of reviewing the performance of a portfolio and, if required adjusting the assets in them. It helps the portfolio stay aligned with the investors’ risk appetite and return expectations at all times.
For instance, let’s say you invest 10k in Bitcoin, Ether, and Dogecoin in 50%, 30%, and 20% proportions. Elon musk tweets about Dogecoin, and now the proportion changes to 40%, 25%, and 35%. Suddenly, your risk appetite increased from 20% of your portfolio to 35% of your portfolio. Rebalancing helps you sell part of your portfolio in Dogecoin and reallocate it in a way that the initial ratio remains.
Coin Sets does this automatically for you on a monthly basis.
Transparency of Investment
Coin Sets give you complete visibility of your investments and their allocation. You can view these details at the bottom of each Coin Set on the app.
For instance, our New Crypto Star theme includes ten cryptos. You can see which are these cryptos and the ratio in which your money will be invested in each of these ten cryptos.
After every rebalancing, you get an email about the changes made to your portfolio, so no surprises there too.
Invest With What You Have
And here comes the best part about Coin Sets. You don’t need a lot of money to start investing in Coin Sets. Even if you have $5 (₹400), you can hop on the bandwagon. We will make your portfolio worthwhile regardless of the amount you invest.
No commission fees are involved, making it a lot more attractive for you to invest with us. We believe that baby steps make a big difference in long-term wealth creation, and thus we refer to the amount you invest with us as a plant that we need to nurture to transform into a tree.
Having said that, we hope that your doubts and understanding of Coin Sets are clear now. Remember that investing is all about time and patience, and no amount is too small to invest.