2020-11-11 21:53 |
There’s plenty of people out there fascinated by the stock market (and making some money) who prefer to invest their funds in diversified portfolios. Beats doing all the work and it involves way less risk, right?
What if you wanted to dabble in crypto with the same strategy? Say hello to CopyPortfolios, which allow eToro users to allocate their funds into managed portfolios. CopyPortfolios do all of the legwork involved in crypto investing, but the features basically boil down to two main traits — allocation and rebalancing.
Allocation: Once you invest that money, where exactly is it going? Using a CopyPortfolio called CryptoPortfolio, for example, your money is allocated into a portfolio that includes an array of cryptocurrencies available on eToro. The coin with the highest market cap (i.e., Bitcoin) receives the largest portion of the portfolio’s total allocation.
Rebalancing: Of course, values shift in any market, including the crypto market. While Bitcoin does not appear to be giving up its throne anytime soon, rebalancing takes into account shifts in cryptocurrency values to reflect the allocation of coins in your portfolio. Rebalancing can occur on a monthly or yearly basis, depending on the CopyPortfolio you choose.
Sounds fascinating, huh? If you want exposure to the crypto market, but don’t have the time to get deeply invested, check out the video below to learn more.
Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.
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